Tuesday, December 7, 2010
The Sheboygan Area School District Board of Education approved a plan that will allow the district to turn one-time federal funding into long-term savings.
The Sheboygan Area School District was awarded $1.6 million dollars under the federal Title 1 Education Jobs Fund. Under the plan, which was approved by the board and ratified by the Sheboygan Education Association (SEA), the district can offer a one year, one-time retirement incentive while spending no local taxpayers’ monies.
District and SEA officials worked collaboratively to develop a plan that would allow up to 100 teachers to retire, thus creating vacancies to avoid future lay-offs, allow for recalls, and possibly allow for the hiring of new teacher.
This early retirement program could identify up to $2.9 million in savings to address the district’s projected 2011-2012 budget deficit, while limiting the impact to the classroom. Long term, the District estimates the plan could save the district over $10 million.
“It will allow more experienced teachers who are at the top of the salary schedule to retire while preserving the positions of younger teachers,” said SASD Superintendent Joe Sheehan.
Under this plan, teachers who are at least 55 years old with a minimum of 10 years of service to the district will be offered a $6,000 retirement incentive deposited into a non-elective tax sheltered annuity account.
Eligible teachers have until January 15, 2011 to apply for this plan.