RETIREMENT INCENTIVE PROVIDES `CUSHION' FOR DISTRICT

The Cape Girardeau School District could net an extra $30,000 in projected savings next year because of higher-than-expected participation in an early retirement incentive plan.

The plan recently was offered to district employees.

A total of 24 teachers, administrators, nurses and classified staff members have accepted the early retirement incentive offered by the Cape Girardeau Board of Education. The plan was approved as a means of tightening the district's fiscal belt. It is part of an effort to cut about $1 million from the school district's budget during the next school year to correct past overspending.

Some 14 junior and senior high school teachers indicated they might accept an early retirement incentive when administrators first polled district staff in early March. If only six new teachers were hired to fill these positions at lower salaries, the incentive plan would have netted the district approximately $170,000 in savings.

Elementary school employees also had indicated interest in the incentive, but administrators didn't include them in the savings projections. New teachers and staff would be required to fill many of the elementary vacancies.

Administrators believe $686,506 will be the total first year cost of the retirement incentive, including about $547,900 to replace every retiree, $67,082 to pay retirees for accrued sick days, and $71,523 in incentive payments. This amount is $203,252 less than the cost of paying the retirees their regular salaries and benefits for one year.

Those savings would increase by at least $67,000 in the second year of the five-year plan, even after providing normal salary schedule increases for certified staff. The second-year increase would exist because the accrued sick days payout to retirees is a one-time payment.

"Now that the number is up we'll have to see what the board decides about the number of new hires that will be needed," said Dr. Steve Del Vecchio, district business manager. "If we don't have new hires for each position, obviously the savings will go up."

The board will hold a meeting June 1 to make final decisions regarding its next budget. Dr. Ferrell Ervin, president, said although the decision to offer the retirement incentive to experienced employees was a difficult one, it has provided the board with a substantial budget reduction.

"Although we could be unhappy because of the experience that's leaving us, this is giving us an extra cushion," he said. "Now we will have to try to go out and bring in the very best people we can find to help educate the children in our district."