PORTAGE | Fifteen Portage Township Schools teachers have accepted an early retirement incentive. A $20,000 health care incentive was offered to qualifying teachers in an effort to cut about $2.3 million from the 2010 budget.
"Everyone that has retired is an advantage to us," Superintendent Mike Berta said, adding he has not calculated the savings yet.
Seventy-seven teachers met requirements of the buyout. Earlier, officials said if all of the qualifying teachers accepted the proposal it would save the district $987,000 this year.
Veteran teachers were offered a $20,000 contribution to the teachers' Voluntary Employee Beneficiary Association plan, a tax-advantage health care reimbursement program.
Berta said four teachers had announced their retirement prior to the buyout offer and will also be given the incentive. Of the 15 seeking early retirement, seven are elementary teachers, five teach at the middle schools and three work at the high school.
Berta said the district intends to replace the retiring educators with younger, less costly teachers, unless enrollment figures decline and the positions don't need to be filled.
While the retirements help, the district still is a long way from meeting the roughly $2.3 million in necessary savings.
Berta said officials still are negotiating with various unions about switching from the present health insurance policy to state health insurance. If an agreement were reached, it could save the district $1.7 million.
The option must receive support from 100 percent of the district employees, and the deadline to reach an agreement is June 30.
Berta said they also are mulling an idea presented by Adult Education Director Frank Vernallis that would close the night school at the adult high school but keep the program open during the day. Vernallis recently told the School Board that closing the adult high school at night could save $100,000 by eliminating teaching, supervisory, security and custodial positions. Current night students would be able to pick up classes at other locations.
Berta said the option will be discussed this week.
Officials have talked for several years about shuttering the adult program entirely because the district contributes around $200,000 of general fund money to the program.
If these options fall through, in particular the switch to state health insurance, Berta said the district will have to look into dipping into its cash balances or rainy day fund, something it doesn't want to do because he anticipates cuts to the 2011 budget will be even deeper. Employee layoffs is the last option in cutting the budget.