Collective Bargaining Agreements (CBA)

Collective bargaining agreements are central to spending decisions. With so much of a district's expenditures tied up in personnel, collective bargaining agreements can have a dramatic impact on a district's budget, both in current and future years. Contract provision have both obvious and subtle effects on a district's ability to align its expenditures with its priorities. An increase in salary and benefits is just one facet of that.

Another significant factor is a district's salary schedule. Most districts determine the salary level for their teachers and majority of other employees based on a schedule that includes "steps" for years of service in the district and "columns" for the amount of education or training employees receive. Staff seniority usually has the greatest influence on average salaries and thus on the percentage of the budget that is spend for personnel. In general, the base salary of most senior teachers is about twice as much as new teachers. The structure of the salary schedule and the amount of any salary increase has predictable multiyear cost implications.

Another significant cost is employee benefits including paid vacations and holidays, sick leave, health care, life insurance, and retirement. The state requires some of these, such as retirement and workers' compensation. Controlling the cost of benefits can be crucial for a district's financial health.

From Understanding School District Budgets January 2005