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Board approves state funding appropriation for FY24-25 staff bonuses; debate continues over tax treatment
Summary
The school board approved appropriation of state funds for staff bonuses, with staff and board members discussing the cost of covering payroll taxes and possible additional measures to boost take-home pay.
The Suffolk City School Board voted to appropriate state funds received for staff bonuses for fiscal year 2024-25, clearing an initial round of funding the city had already approved.
Board members voted to accept the state-provided funds so the division could pay the bonuses within the current fiscal year, a necessary administrative step the superintendent said was required to distribute the money by June 30. The motion to appropriate the funds was made by Board member Jenkins and seconded by Board member Fields; the recorded vote was unanimous among members present.
During discussion, several board members asked whether the district could absorb the employer-side payroll taxes or otherwise increase the amount employees receive after withholding. Chief Financial Officer Wendy Forsman warned that covering the tax cost would substantially increase the appropriation the board must approve: the line item staff referenced in materials (marked with a red asterisk) for the division's share was described in discussion as approximately $723,500. Forsman said covering the payroll-tax burden for about 2,300 employees would add roughly $1.15 million to the appropriation, which would reduce funds available for other year-end priorities.
Superintendent Dr. Gordon and Forsman said staff would produce cost scenarios and a tiered set of options for the board to consider at the next meeting. Board members asked staff to model partial tax-absorption scenarios (for example, covering a portion of payroll taxes) and also requested that staff explore noncash or operational incentives (additional carryover personal days, wellness rebates, and other benefits) as alternatives for increasing employee value beyond the direct bonus amount.
The recorded vote to appropriate the state funds was: Dr. Brittingham — yes; Board member Fields — yes; Board member Jenkins — yes; Board member Riddick — yes; Board member Slingluff — yes; Vice Chair McGee — yes; Board Chair Howell — yes. Staff said the city-appropriated portion enables the district to proceed with payments once payroll and administrative details are finalized.
