ADE Director's Communication Memo Form


Memo Number : FIN-05-029

Date Created : 06/06/2005

Attention:

Superintendents
Co-op Directors

Type of Memo: Informational
Response Required: No
   
Section:   Public School Finance and Admin Support - Ms. Patricia Martin
Subject:
Classified Employee Minimum Hourly Rate – Consumer Price Index

Regulatory Authority:
Ark. Code Ann. §6-17-2203

Contact Person:
Julie Kreth

Phone Number:
501-682-5128

E-mail:
jkreth@arkedu.k12.ar.us

Ark. Code Ann. §6-17-2203 requires school districts to increase the minimum hourly rate paid to full-time classified school employees by a percentage equal to the percentage increase of the consumer price index (CPI).

This legislation only applies to full-time classified school employees. The district should add the current minimum hourly rate to the annual CPI percentage increase. The result is the new minimum hourly rate to be paid to all full-time classified school employees. An example of this calculation is shown below.

The legislation does not provide a specific source for the CPI data. The Department recognizes the Bureau of Labor Statistics' webiste as a valid source of CPA data: http//www.bls.gov/. According to information available at http://data.bls.gov/cgi-bin/surveymost?cw (check the first box, which is labeled "U.S. All items, 1982-84=100 - CWUR0000SA0", scroll to the bottom of the page and click the button labeled [Retrieve data]), the CPI for Urban Wage Earners and Clerical Workers increased by 3.1% from the twelve-month average ending in April 2004 (average of May 2003 - April 2004) to the twelve-month average ending April 2005 (average of May 2004 - April 2005.)

The minimum hourly rate for the 2004-2005 school year was $6.50. The established increase for 2005-2006 is 3.1% or $0.20 per hour, which results in the new minimum rate of $6.70 per hour.

For more information on the CPI, go to the following website: http://www.bls.gov/cpi/cpifaq.htm.

Attachments:
    None

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