SCHOOL BOARD Salem offers opt-outs

Rising costs and plummeting revenue are forcing the belt-tightening.
By NORMAN LEIGH
VINDICATOR SALEM BUREAU
SALEM -- As part of a continuing bid to slash the school district's operating costs, the school board is offering employees retirement incentives.
The panel agreed Tuesday to offer eligible employees a bonus of 20 percent of a year's pay if they agree to retire by June 7.
About 23 teachers and seven nonteaching employees are eligible for the incentive, which would be paid over two years.
To qualify, employees must have at least 30 years of service, or have 25 years' experience and be at least 55 years old, or have five years' experience and be at least 60 years old.
Savings
The district would save about $60,000 per teacher who accepts the deal and about $37,000 for each nonteaching employee who takes it, Superintendent Dr. David Brobeck said today.
In calculating savings, district officials figure in the total cost of employing someone, Brobeck said.
An experienced teacher making $50,000 annually costs the district about $79,000 a year, factoring in salary, health-insurance benefits and the district's contribution to his retirement. Total cost for a nonteaching employee making about $25,000 annually would amount to about $42,800, Brobeck said.
Among teachers, he estimated that perhaps three will accept the incentive. Maybe one nonteaching employee will accept, Brobeck added.
Costs rise
The district is trying to save money because costs to operate the schools are increasing when state funding is dropping and revenue from local tax dollars is decreasing.
Last month, the school board said it saved $650,000 by not renewing contracts for 12 full-time teachers and by not replacing two teachers who are retiring.
The district also is weighing administrator layoffs this summer.