OAE Educational Leadership (015) Practice Test 2025 - Free Educational Leadership Practice Questions and Study Guide

Question: 1 / 400

When planning school budgets, which statement about employee benefits is correct?

It is most difficult to project employee salaries for the next school year.

Employee benefits are more difficult to predict than employee salaries.

Employee benefits are indeed often more difficult to predict than employee salaries due to several factors. While salaries can generally be anticipated based on existing contracts and agreements, the costs associated with benefits, such as health insurance, retirement plans, and other forms of compensation, can vary greatly year to year. These fluctuations may be influenced by changes in healthcare costs, adjustments in employer contributions, changes in legislation affecting benefits, or shifts in the employee demographic.

Budgeting for benefits requires districts to account for variables such as employee turnover, changes in employee participation in benefit plans, and overall economic conditions that impact costs. This unpredictability makes it challenging for school districts to project benefit expenses with the same accuracy as salaries, which are typically more stable and predictable based on contractual obligations.

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Transportation expenses are always included in budgets as essential.

Districts cannot reserve funds for unplanned emergencies.

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