Retirements help reduce budget deficit
PERRYOPOLIS – A $421,698 deficit in the Frazier School District’s tentative budget was reduced to $117,573 following the submission of eight early retirements accepted Thursday by the school board at a special meeting. The board learned from Tom Shetterly, business manager, the retirements produced a $276,825 savings in salaries and benefits along with a reduction of $35,628 for medical coverage the district is reimbursed for by the state for social security, Medicare and retirement.
The board voted last month 5-3 to offer an early retirement incentive as part of a memorandum of understanding between the district and the Frazier Education Association.
The measure drew support from Stacey Erdely, board president, John Sterdis, Kathy Burkholder, John Strickler and Vicki Olexa.
Opposed were members Deborah Vargo-Alekson, Charles Petrosky and Dave Simmons, with Amy DeLuca absent from the meeting.
Under the agreement, staff members, whose benefits are covered by the association’s collective bargaining agreement and who had a minimum of 30 years of credited service with the state’s public school employee’s retirement system, were offered a one-time payment of $10,000.
Qualifying teachers that submitted retirement letters included Paul E. Black, secondary social studies; Susan Elliot, K-12 art; Edward Kolencik, secondary special education; Veronica Kuchar, elementary; Valerie Madorma, secondary librarian; James Natale, middle school technology education; Lewis G. Sweitzer Jr., secondary health/physical education; and Mary Wilson, elementary.
Compared with last month’s adoption by the board of a $15,445,786 million tentative spending plan, Shetterly said the budget now stands at $15,115,695 that would require a tax increase of 0.469 mills.
For the average property in the district assessed at $74,000, Shetterly said the new deficit would raise taxes by $34 per year.
According to Shetterly, the district received a $10,000 robotics grant this week that would need a sponsor at an expense of $1,527 pending board approval.
Shetterly noted other savings that included $9,894 in medical coverage from husband and wife and $10,316 for retirements in custodial salaries currently in negotiations.
Shetterly said he also took $13,813 out of the tentative spending plan for specialty items requested by the staff the district felt were not essential at this time and could wait another year to purchase such as furniture.
Additionally, Shetterly said an athletic fund transfer of $900 to the general fund reduced the district’s expenses as well as $10,000 eliminated for deferred maintenance that would be taken out of the fund balance if needed.
While Shetterly said $5,000 was budgeted last year and this year for an industrial appraisal required by the state every eight to 10 years, he felt the district could hold off another year until it would be on deadline.
In an unrelated matter, the board received a letter of resignation from DeLuca, who cited personal reasons for her departure.
The board plans to accept her resignation at the regular meeting June 17 with DeLuca’s four-year term set to expire in December 2011.
The board will also hire a head football coach then following interviews by the athletic committee on June 14 for the position.