JIMTOWN -- It's uncertain whether additional K-12 cuts will be made by the state, but Baugo Community Schools officials and teachers aren't taking any chances.
On Monday, Baugo's board of trustees approved amendments to the district's contract with teachers that included a memorandum of understanding regarding potential budget cuts. The teachers have agreed to reduce their compensation if additional cuts are announced, a move that prevents the district from having to lay off faculty this year.
According to the agreement, if an additional 1 percent is cut from state-provided tuition in 2011 then the district will suspend payments to teachers' 401(a) VEBA post-retirement health insurance accounts for the year. A 2 percent cut by the state will result in suspended VEBA payments along with a 1 percent reduction in salary, and a 3 percent cut means VEBA suspension and a 2 percent cut in pay.
If the state cuts more than 3 percent, the district will meet with teachers to discuss additional cost-saving measures.
Typically when a teacher signs a contract with a school district his salary is written in stone, no matter the amount of money provided to the district by the state. Consequently, amid rumors that more cuts may be coming, some districts must decide whether to lay off teachers to ensure they'll be able to compensate for the potential loss.
Daniel Friel, an attorney for the district, said any additional cuts will be felt across the board, but the agreement provides the district breathing room. Officials don't have to determine the number of jobs they can afford in advance as they can now adjust teachers' compensation to make up for any tuition losses.
"It would be disruptive to have further cuts in the teaching staff," said Daniel Friel, an attorney for the district.