Package costs temporary property-tax hikeP
By LARRY PETERSON - CNA assistant managing editor lpeterson@crestonnews.com
Pay now, or pay more later.
That was the strategy of the Creston School Board Monday in approving an early-retirement package for 17 teachers and staff members. Those staff members have a combined 455 years of service in the district.
The compensation package for the 17 employees, a percentage of their salary paid over two years, totals $282,435. The board originally set aside $150,000 for early retirement payouts.
“By doing this you’ll probably raise property taxes by 23 or 25 cents per $1,000 valuation for two years,” said Don Krings, district business manager.
However, the turnover of some of the district’s highest-paid employees will prevent an even higher tax increase as a result of the state’s 10-percent budget cut and an enrollment drop of 35 students this year, according to Krings.
Budget tool
“This is a budget tool,” Krings said. “It raises taxes by 25 cents for our management fund, but I do believe it will help us not have to raise taxes in the general fund by much more.”
Board member Randy Hughes asked if any of the positions may not be filled, due to budget constraints.
“I would say because of the 10-percent cut across the board, and declining enrollment, many of these positions will be looked at,” Hood said. “We were cut almost $700,000 and we’re down 35 kids, so we have to change how we’re doing things.”
With the enrollment drop, that’s another $200,000 drop in revenue for the next fiscal year. Other than a drop of 68 students between 2006 and 2007, it is the largest decline in recent years and continues a downward trend.
Lower enrollment
Creston’s total enrollment was 1,655 in 1995-96. This year’s is 1,314 and another drop to 1,298 is projected by 2013-14. However, the dropoff is expected to be more steady with only 16 fewer projected students over the next four years.
That doesn’t help the current situation, however, and Hood said he wouldn’t be surprised if another state cutback is announced.
Concerned about the tax impact, Board President Rich Flynn asked administrators how many early-retirement candidates would have made up the original $150,000 budget. Hood said only seven or eight of the employees would have used up that amount.
With the number swelling to 17, is Hood concerned about such a massive turnover of experience looming next year?
“When we offered it before we were asked that same question,” Hood said. “We had people of varying degrees of experience apply. We try to hire who we think is the best person for that position. Sometimes that is a beginning teacher.”
Hood closed the discussion by recognizing the contributions of those accepting the early-retirement package.
“I’d like to publicly say thank you for all the years you’ve educated those kids and making students’ lives better,” Hood said. “It is a great group of people, and I wish them all the luck in their retirement, as well.”
Employees with 13 or more years of service in the district who will be at least 55 years of age before July 31, 2010, were eligible for the 2010 early retirement package.
