Ask SSC . . .

 

Is the COLA Really for Certificated Salaries Only?

 

Q.        Where is it stated that the cost-of-living adjustment (COLA) we receive is for certificated salaries? It seems that the certificated staff believes that, when the district receives a 4.53% COLA, the entire amount should go toward their salaries. When it is explained that this is new unrestricted money that helps pay for cost increases in utilities, transportation costs, and step and column (they think they are owed this step and column and that it is above the COLA), we say it is not just for faculty salaries. I feel like I am beating my head against a brick wall. Any suggestions?

 

A.        Your employees are arguing a false assumption. The COLA is not designated only for salaries and other compensation. We have covered this point in our workshops many times. The actual statutory COLA calculation is called “an implicit price deflator for government agencies” and considers all of the costs involved in running a government agency including all the things you list. The Consumer Price Index (CPI), not COLA, would be a better measure of employee compensation needs.

 

            You can think of it this way: if the state wanted to divide up the COLA into segments representing cost increases in community college operations, it would give the CPI on the salary portion of the budget, the heath care index increase on benefits, the fuel adjustment increase on energy, and on and on. What the statutory COLA calculation does is weight each of those factors and provide one amount that covers it all. If you use all of the dollars for only one of the factors, you will go broke quickly.

 

—Ron Bennett