24 San Ysidro School District employees to retire under plan to cut costs

San Diego Union-Tribune (CA)

Feb. 25-- Feb. 25--Two dozen San Ysidro School District employees will retire at the end of the school year under a retirement incentive plan that could save the district as much as $7.2 million over the next five years.

Approved unanimously by the school board last week, the plan is part of efforts to cut costs in order to address financial troubles that include a $4.5 million budget deficit this school year.

"The supplemental retirement plan is a blessing for both our 24 employees who are retiring and for our district as we take proactive steps to ensure a positive budget for next school year," Superintendent Gina Potter said in a statement.

District officials have attributed the district's financial problems to declining enrollment, rising pension and special education costs, and debt from school renovation projects.

Projections of savings generated by the retirement incentive plan -- which include more than $1 million next year and up to $4.1 million over three years -- are based in part on the difference between the salaries of employees who will retire and new hires with less experience.

Other factors taken into account were medical insurance costs and natural attrition.

The employees who will retire in late June include seven classroom teachers and 17 classified non-management employees in various positions, including four nutrition specialists, three custodians, an administrative assistant, a gardener and a bus driver.

Most employees -- the group of classified non-management staffers -- will receive a year's salary in monthly payments over five years. Meanwhile, teachers will be paid out 70 percent of their annual pay.

To encourage retirements, a full year's salary was offered if a certain percentage of eligible employees signed up for the deal.

The plan was open to most employees age 50 or older with at least five years of employment. Eligible staffers included 45 teachers and 70 classified non-management employees.

The average annual salary of teachers who will retire is $98,000, with the top salary at $103,000. Their average age is 64, and they've worked for the district an average of 27 years.

Among classified non-management employees, the average annual salary is $38,000, with a custodian's salary of $53,000 at the top of the scale. On average, the staffers are 62 years old and have worked for the district for 20 years.

Moving forward, the district will consider which retirees to replace.

The retirement plan approved by trustees on Thursday is one of the ways the district of about 5,000 students intends to reduce costs in the coming years to address current and anticipated budget shortfalls. Next year, the district expects to make $4.7 million to $6.4 million in cuts.

The district already has imposed a hiring freeze that is expected to save between $600,000 and $650,000, as well as a spending freeze that is expected to save $300,000.

In the coming weeks, the district plans to move forward with layoffs that will result in savings projected at $1 million to $1.6 million.

The district also plans to cancel some contracts to save between $50,000 and $100,000 and settle legal cases to save as much as $200,000.

The areas where the district will make cuts next school year were outlined in a plan approved by the school board last week.

The district is required to turn over the so-called spending reduction plan to the San Diego County Office of Education because it reported its financial conditions in December as "qualified," a designation that means the district may not meet its financial obligations for the ongoing and next two school years. It was one of four districts in the county that reported a "qualified" status.

Taking into account the anticipated cuts, district officials said they are hopeful they can improve the district's finances next school year.

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