1060.10 Purpose

The purpose of this policy is to establish the Consumer Price Index (CPI) as a reference indicator for evaluating cost of living trends during collective bargaining and salary negotiations.

1060.20 Definition of Consumer Price Index

The Consumer Price Index (CPI) is an economic indicator published by the U.S. Bureau of Labor Statistics (BLS) that measures the average change over time in the prices consumers pay for a representative basket of goods and services.

1060.30 For purposes of this policy, the District shall use the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose metropolitan area, as published by the BLS. The CPI-U includes expenditures made by a broad population group, including wage earners, salaried employees, retirees, and others living in urban areas.

1060.40 Applications to Salary Adjustments

The CPI-U shall be used as a reference indicator during salary negotiations and compensation reviews. The annual percentage change shall be calculated using the December-to-December method:

            (December CPI Current Year – December CPI Previous Year) ¸ December CPI Previous Year x 100

Changes in the CPI do not mandate or automatically result in salary adjustments. Final compensation decisions remain subject to Board approval, the District’s fiscal condition, applicable labor agreements, and other relevant considerations.

The District Finance Department can access the Consumer Price Index (CPI) by using (www.bls.gov/cpi) during January or February to obtain CPI-U data for San Francisco, Oakland, and San Jose, labeled as “All Urban Consumers.” The BLS compiles this data as a monthly index for the U.S. city average in the three largest metropolitan areas, four geographic regions, three population size classes, and ten regional-by-size groupings. At year’s end, a specific formula will be used to determine the year’s overall CPI. Changes in employee living costs, for salary negotiations, will be based on this formula.

 

Issued: July 10, 2002

Board Approval: March 11, 2026