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School Board Initiates Incentive to Save Money
Citizen-Dispath staff
In an effort to alleviate budget problems created by the lack of state funding and previous board's spending, the Hillside Board of Education approved a "Voluntary Separation Incentive Program" in order to reduce salary costs.
The program, which was crafted by the school board, gives highly paid teachers, administrators and workers in the district an incentive to retire or resign by offering them monetary compensation for unused sick leave days.
A savings would amass once others who would start at a lower salary scale replace these employees.
For instance, if a teacher now earning $70,000 and benefits were to take advantage of this incentive, the school board could replace that teacher with one who would earn $35,000 and benefits.
Employees will have two "windows of opportunity" to take advantage of the program - one in August, the second in December.
In August, the board would pay teachers a maximum of $36,000 and custodians, secretaries, etc $18,000 over a period of three years. Those sums would reduce to $24,000 and $12,000 for those who apply in December.
Administrators would receive $40,000 and $30,000, respectively.
The plan poses no risk to taxpayers or students because the school board has final discretion. The board can easily cease the program if it finds that the teacher resignations are either not cost-effective or not beneficial to the school system, Business Administrator Kenneth Weinheimer explained.
The Hillside school board's plan is actually more effective than the early retirement package recently released by Trenton because the Hillside plan does not contain any "hidden costs" associated with pension payments that the state plan has.
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