McDonald school board OKs borrowing of funds


June 17, 2008 at 12:00a.m.

By Mary Smith

The school district has joined a health insurance consortium.

McDONALD — The village board of education will borrow $600,000 through June 30, 2009, to be used to offset costs of the school district’s new early-retirement incentive program.

The district will borrow the funds through Huntington Bank. The district will issue and sell a current tax revenue note worth $600,000. The borrowing is for the 2008-09 fiscal year, which starts July 1.

The incentive program gives teachers and administrators retiring early $20,000 over a three-year period. High school Principal John LaRocca and six teachers took advantage of the program at the end of the 2007-08 school year.

This is the first year for the program, and it will continue over the next three years, when 10 teachers are expected to take the incentive, schools Treasurer Thomas Radabaugh said at Monday’s board meeting.

In addition, the board announced a two-tier health insurance program for teachers through the Trumbull County Schools Health Insurance Consortium will take effect July 1.

The first tier will have teachers paying 5 percent of their premium for the first time, but will limit their out-of-pocket expenses to $800. The second tier is for new hires who will have to pay 10 percent of their premium and will have a $2,000 yearly maximum out-of-pocket expense.

Previously teachers had not paid toward their premiums. Benefits will remain the same.

Radabaugh said the $600,000 will help cover expenses for the first year of the incentive and health-insurance programs, adding the district expects to save between $17,000 and $18,000 a month in 2008 to June 30, 2009, to cover the loan.

In other business, the board approved allowing the McDonald Alumni Association, led by president John Saganich, to become involved in fundraising to help upgrade sports facilities.

The board recognized the association as a fundraising group for the schools and allowed the association to use board property and school events to raise money.