• If the projected change is a decrease, multiply budget amount by 1 – percentage decrease. Example: Budget amount = $1000; calculate 2% decrease.
1 – 0.02 = 0.98 2% decrease = $1000 x 0.98 = $980
Example
Calculate next year’s annual labor budget if the current budget is $98,720, and employees will be given a 1.9% Cost of Living Adjustment (COLA). 1.9% = 1.9/100 = 0.019 1 + 0.019 = 1.019 $98,720 x 1.019 = $100,596
Calculate next year’s annual labor budget if the current budget is $82,000, and the administration is asking for a 1% decrease next year.
Step 1: Daily labor hours ÷ usual client census = labor hours/client Step 2: Labor hours/client x new average census = new daily labor hours
Example
The usual staffing for Dining Services is 60 labor hours per workday for a usual client count of 150. The census has dropped to 125 clients, and Dining Services is asked to reduce their staff level. Using the above process, what would the new daily staffing level be?
Ratio of daily labor hours to census: 60 labor hours/150 clients = 0.4 labor hours/client Multiply ratio by new average census: 0.4 labor hours/client x 125 clients = 50 labor hours