LITTLE ROCK, Arkansas — Educators in Arkansas heard for the first time on Wednesday night that the salary increases they were promised are now postponed due to a budge shortfall.
Board members seemed shocked when they heard the news that the Little Rock School District budget is $6 million dollars short from giving teachers a planned pay raise.
"Did we not just vote at a recent meeting to commit to this second round of raises? This was not mentioned that we would not be able to afford it," said Ali Noland, a board member.
It was a budget projection failure.
When LRSD crunched the numbers for this fiscal year they estimated some of it based on tax revenue projections, which ended up missing the mark by millions of dollars.
"I think it's speculation, really, on our part about why the tax revenues from the property taxes have come in so far below our projections, because our projections were conservative... We try to be careful," said Greg Adams, LRSD Board President.
The loss of money comes from several different places: less tax revenue, less state income due to falling student enrollment, and a change in the finances when the board agreed to keep operating some of the schools that were expected to close.
"Just honestly, not closing all the schools we proposed throws a little wrench in there as well. About two million dollars we have to make up somewhere," said Kelsey Bailey, LRSD's Chief Deputy Financial and Operations Officer.
Little Rock Education Association President Kristy Mosby responded with a statement:
The Little Rock Education Association was disappointed to hear that the Little Rock School District would not be able to honor the 2nd year raises for educators. The educators and community fought for and approved the millage extension that would allow for extra monies to be used in other areas of the district budget, including salary increases. The educators of the Little Rock School District have gone above and beyond to show their commitment to the district and to the students throughout the global pandemic by showing up every day and risking their own personal safety. When will the district show their appreciation to the educators?
But they said it isn't over yet. The board will see what the next budget projections are in October and they will then try and come up with the salary increase for teachers.
The resolution the board passed last year increased the teacher salary from $36,000 to $43,000.
The second phase, where the board is struggling to find the money, would raise their salaries to more than $45,000.
The final phase would get the salaries up to $48,000.