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Asheville City Schools explores changing local salary supplement to fixed rate to control costs
Summary
Finance staff proposed switching the district—s locally funded salary supplement from a percentage to a fixed dollar amount to make supplemental pay more predictable; staff estimated long‑term savings and offered a model used by larger districts.
District finance staff told the board that Asheville City Schools— current local supplement is calculated as a percentage of employees— pay, which causes the supplement cost to grow automatically when base salaries increase. Heidi (staff member, finance lead) proposed an alternative: convert the supplement to a flat fixed rate per employee and, if desired, cap the amount for future hires.
Heidi said the change would not reduce what current employees receive immediately (with proposed grandfathering) but would slow future cost growth tied to percent increases in base pay. In a worked example, the district projected roughly $200,000 in annual savings under a fixed‑rate model compared with continuing the percent structure; staff also gave an example showing that a 1% across‑the‑board supplement increase costs roughly $500,000 under the current percentage model but would cost about $60,000 under a fixed approach. Wake County was cited as a local example that switched to a fixed supplement several years ago.
Board members asked how the change would affect classified staff, long‑tenured employees, and collective reaction. Heidi and Maggie (staff member, budget presenter) said the district could grandfather existing payouts and set the cap level as a board decision; they noted that most neighboring districts either pay a lower supplement for classified staff or do not provide an hourly supplement at all. Board members emphasized the priority of minimizing staff layoffs while also making the supplement sustainable.
Why it matters: The supplement is a significant locally funded cost driver because Asheville City Schools pays a larger share of staff salaries from local revenue than many districts. A structural change would affect future raises and the district's ability to balance staffing expectations with available local and county funding.
Status: The proposal was discussed as part of the broader FY26 budget conversation. No formal board decision to change the supplement was recorded; staff will include the proposal and projected savings in contingency scenarios.
Direct quote: Heidi said, "The cost of the supplement increase would decrease moving forward," describing the fixed‑rate proposal and adding that the district could control the supplement fully under that model.
