ADE Director's Communication Memo Form


Memo Number : FIN-07-068

Date Created : 06/05/2007

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:
julie.kreth@arkansas.gov

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 CPI data: http://www.bls.gov/. CPI data used for the percentage increase calculation is found 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 indicate the CPI for Urban Wage Earners and Clerical Workers increased by 2.8% from the twelve-month average ending in April 2006 (average of May 2005 - April 2006) to the twelve-month average ending April 2007 (average of May 2006 - April 2007.) The minimum hourly rate for the 2005-2006 school year was $6.94. The established increase for 2007-2008 is 2.8% or $0.19 per hour, which results in the new minimum rate of $7.13 per hour. If a school district is currently paying full-time classified employees $7.13 or higher, there is no mandate to increase the rate by 2.8%. For more information on the CPI, go to the following website: http://www.bls.gov/cpi/cpifaq.htm.

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