Board extends reward offers

Only a handful of teachers are expected to join the 37 already signed up.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- The Youngstown Board of Education is extending the deadline for a retirement-incentive package designed to entice teachers of retirement age to leave before the start of school this fall.
It's part of an effort by the district to cut expenses for the new fiscal year, which begins Saturday. The district has projected an $11.9 million deficit in the 2006-07 general fund.
Treasurer Carolyn Funk said the district will save $10,000 a year on each retiree, the difference between top salaries they are making versus starting salaries for new teachers hired to replace them.
The district had hoped to get at least 35 teachers to take the incentive and has done slightly better, with 37 signed up so far. A total of 118 of the district's 796 teachers are eligible.
The original cutoff date for retirement letters was May 2, but the board voted this week to extend that deadline to July 24.
Germaine Bennett, assistant superintendent of human resources, said there have been some new expressions of interest from teachers since the deadline passed.
Only a few more would be expected to take advantage of the incentive plan, however, she said.
Extending the deadline can't be a unilateral decision.
Union approval required
The incentive plan was drafted as an amendment between the district and the Youngstown Education Association, the teachers union, and this change in the deadline also must be approved by the YEA, district officials said.
The YEA is scheduled to vote July 17.
The board's action came with a warning that, should the YEA reject the deadline change, anyone who submitted a letter of retirement after May 2 won't be guaranteed the $30,000 retirement-incentive package.
Those teachers affected would be given the option of rescinding their retirement letter, however.
The incentive package won't put cash directly into the pockets of retirees.
The $30,000 will be spread over three years, with the district putting $5,000 each year into a health-care retirement account and $5,000 each year into a 403B retirement account for each retiree.
The tax-free, health-care account can be used to pay out-of-pocket medical expenses the retiree might incur. The 403B account is a tax-deferred account, which means the retirees will have to pay taxes on that money when they eventually withdraw it.
gwin@vindy.com