ADE Director's Communication Memo Form


Memo Number : FIN-07-001

Date Created : 07/07/2006

Attention:

Superintendents
Co-op Directors

Type of Memo: Informational
Response Required: No
   
Section:   Fiscal and Administrative Services - William J. Goff, Assistant Commissioner
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). 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' website 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 data on this page indicates the CPI for Urban Wage Earners and Clerical Workers increased by 3.6% from the twelve-month average ending in April 2005 (average of May 2004 - April 2005) to the twelve-month average ending April 2006 (average of May 2005 - April 2006.) The minimum hourly rate for the 2005-2006 school year was $6.70. The established increase for 2006-2007 is 3.6% or $0.24 per hour, which results in the new minimum rate of $6.94 per hour. If a school district is currently paying full-time classified employees $6.94 or higher, there is no mandate to increase the rate by 3.6%.For more information on the CPI, go to the following website: http://www.bls.gov/cpi/cpifaq.htm.

Attachments:
    None

Back to the Customer List

Copyright 1997 Arkansas Department of Education. All rights reserved.
Department of Education Home Page