For Immediate Release:
April 1, 2010
Contact:
Lisa McVey, Communications & Community Relations Liaison, 610-869-2441, ext. 1019
Avon Grove School Board Approves Voluntary Retirement Incentive Programs
At the March 25, 2010, School Board meeting, the Avon Grove School District Board of School Directors approved two voluntary retirement incentive programs for eligible support staff and teachers, and based on preliminary projections District officials anticipate a combined savings of about $145,000 as a result of possible voluntary retirements.
Both programs offer incentive pay for eligible employees who elect to retire at the end of the 2009-2010 school year. The programs are being offered as part of the school district’s efforts to manage ongoing expenditures as well as balance the 2010-2011 general fund budget and close a projected budget gap for next year.
As part of the support staff incentive agreement, full-time support staff employees with 25 years of service in the District who are eligible for full retirement benefits and elect to retire at the end of this school year would receive a payment of $5,000. Support staff employees who are less than full-time but are eligible for the program based on years of service would get a prorated incentive payment.
As part of the teacher incentive agreement, any full-time professional employee with 15 years of service in the District who does not qualify for full retirement benefits and who elects to retire at the end of this school year will receive a payment of $10,000. Any full-time professional employee who is eligible for full retirement benefits, and who elects to retire at the end of the 2009-2010 school year would receive a payment of $20,000. Employees who work part-time but are otherwise eligible would receive a prorated incentive.
Based on initial letters of interest received in early March, the District administration estimates that support staff voluntary retirements could generate about $15,000 in potential savings and teacher voluntary retirements could generate about $130,000 in potential savings. Now that the agreements have been finalized, employees have until April 15, 2010, to notify the superintendent in writing of their intent to retire effective at the end of the 2009-2010 school year in order to receive the incentives as outlined.
A similar voluntary retirement incentive program was presented to school and District administrators in late February/early March; however, no administrators expressed interest so a formal plan was not developed for Board consideration.
District expenditures will increase next year due primarily to increases in salary and benefits obligations, as well as increased costs for transportation, energy and other operating costs. In addition, unless the General Assembly takes legislative action, the Avon Grove School District and other public school districts throughout the Commonwealth will face significant increases over the next several years in employer paid contributions to the state's public school employees’ retirement system.
Real estate tax revenues have not increased over the past two years due to the depressed housing market. Interest earnings are down and revenues from real estate taxes have declined by $1.2 million in the past two years due to property reassessments and associated reductions in property tax bills. There has also been a decrease in transfer taxes from home sales and interim taxes.
Efforts to balance the 2010-2011 budget include identifying expenditure reductions and evaluating potential sources of new revenue for the next fiscal year.
Avon Grove School District’s Student Activities Fee Committee has recommended that the Board of School Directors consider implementing a pilot student activities fee program. The $25 proposed fee would be a onetime annual charge that would apply to each high school student participating on one or more interscholastic teams and/or in other activities that involve nonacademic interscholastic competition, including cheerleading, the marching band, indoor color guard, and indoor percussion. The fee would be nonrefundable. The program would generate an estimated $25,000 in revenue. The Board will consider adoption of the student activities fee program at a future meeting.
Other options being evaluated include increasing student parking fees, and a separate committee is evaluating the possibility of charging increased fees to outside organizations that use district facilities. That committee will make a recommendation to the Board for consideration.
Also on March 25, the Board of School Directors approved a four-day summer work week for year-round employees that is expected to save an estimated $15,000 in operating expenditures.
Additional work will be necessary in order to close the budget gap and balance the 2010-2011 proposed budget. District officials will continue to evaluate potential options over the next several months.
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Posted:
Thursday, April 1, 2010 2:16 PM
