A proposal to give all North Little Rock School District employees a one-time, across-the-board bonus was tabled Thursday until next month so the district can explore further the option of giving raises instead.
Superintendent Kelly Rodgers proposed a one-time, $850 bonus for all employees -- teachers and the support staff alike -- in lieu of giving a pay raise.
"It would be very difficult to recommend a 3 percent raise," Rodgers told the board.
Neither pay raises nor bonuses were included in the district's budget for this year or the next two school years. Last week, however, Rodgers and other district administrators discovered an extra $1.4 million in its construction budget, mostly accumulated from the sale of properties.
Board member Dorothy Williams took issue with the lack of raises and asked why a 1 percent or 2 percent raise for teachers could not be considered.
"I'm passionate about everybody in this district," Williams said. "Teachers are sick and tired of you giving a penny here and a penny there."
Denise Drennan, the district's chief financial officer, told the board that the bonuses would be a one-time commitment but raises are permanent and must continually be funded each year.
"We're not comfortable enough of what the future looks like to obligate ourselves," Drennan said, adding that in regard to bonuses, "I know that's not what employees want at all because they can't bank on that."
Board member Tracy Steele said it was his understanding that the board has the authority to vote salary raises and, if necessary, to vote for salary reductions.
Steele has pushed in previous board meetings for a teacher raise of 2 percent to 3 percent to keep from losing teachers to other districts.
District Executive Director of Human Resources Karli Saracini responded that the state law protects against salary reductions for teachers.
"The way the law reads, you cannot make less than the previous year," she said. "In doing so, you'd have to partially risk your salary or your position. They could take us to court and win."
"But it could be done," Steele countered.
Rodgers interjected that he had worked through several scenarios with the district's legal counsel and that, if necessary, a salary reduction could be done.
"It hasn't been done very successfully in Arkansas, but it can be done," Saracini said.
Williams said she was not convinced that the only alternative was to give out bonuses and asked how much it would cost the district to fund a 1 percent raise to all employees.
"$650,000 this year and every year after," Drennan said.
The district is trying to reduce costs by $8.2 million this year, $2.9 million in 2016-17 and almost $5 million in 2017-18. So far this year, certified and support staff positions were cut, and department budgets were slashed by 30 percent, among other cost-saving measures.
The district's $7.6 million a year in state desegregation aid will end after the 2017-18 school year. The district is also in the middle of a nearly $245 million construction campaign that includes new schools and other facilities.
"We say we can't give teachers raises, but we're steady spending money," Williams said.
The board agreed to table the decision until its Dec. 17 board meeting. Doing so, however, would mean that -- if Rodgers' bonus proposal is accepted -- the employees would not receive the extra money until January.
"The meeting is two days before we are out for the holidays," Rodgers said after the meeting. "It would be impossible to process the payroll before Christmas."
Metro on 11/20/2015