The salary reduction program is based on a set of progressive marginal reduction rates. The “progressive” part means the rate of reduction increases with salary rate. The “marginal” part means that the reduction are tied to brackets of salary ($0 to $50,000, $50,001 to $70,000, $70,001 to $90,000s, etc.) and each bracket has its own reduction rate (the marginal rate) applied only to the dollars in that bracket. The total reduction for a specific salary is the sum of the dollars in each bracket times the marginal rate for that bracket. This is the same way income tax is structured. Some examples are given here.
This table shows the marginal rates for the $55M gap case. The marginal rates are NOT the reduction rate on the whole salary only the increment in that range. See the salary estimation page for individual reduction estimates.
If the gap between Corvallis revenues and expenses is less or more than $49M the reductions would be scaled proportionately. If the gap is $35M or less, no salary reduction will be implemented. The table below shows how the marginal reduction rates in each salary bracket would scale at different revenue forecasts for Corvallis Education and General funds. The projections will be revised in early November and mid-February and the salary reductions adjusted accordingly if necessary.