Brandon Twp.- About 18 district teachers have agreed to a comprehensive severance package’just enough, said an official from Educators Preferred Corporation last week, to move forward a plan that could save the district thousands.
‘It’s an emotional decision to retire,? said Katy Rose, senior vice president for EPC, the Southfield-based company that provides early buy-out severance plans for a variety of professions. The deadline is May 11 with a seven day revocation period, so by the 18th (of May) it should be complete. Chances are we’ll get a couple more teachers to sign up by then.?
The decision to offer the buyout comes after school officials say an estimated 13 teachers may receive layoff notices in the next few months due to declining enrollment. The district is projected to lose an estimated 160 students by this September, creating a possible shortfall of more than a $1 million in the $29 million district budget. The Brandon District budget shortage is coupled with an anticipated per-pupil reduction of $125 for 3,668 Brandon students as Lansing contends with a sagging $900 million state budget.
Adding to the shortfall is a $90,000 cut in career development, drops in the CHOICES program enrollment, and staff wage increases. The district keeps about 13 percent or about $4 million in a fund equity account to cover any shortfalls that may occur during the school year.
The Brandon School Board OK’d the severance package by a vote of 6-0 on March 12 for teachers who choose to retire early from the district. The severance package is projected to save the district an estimated $700,000 in the first year and $500,000 in the second year. The severance plan for district teachers includes:
nA minimum of 18 teachers must agree to the severance package.
nTeachers will have 45 days to sign up and seven days after that time to reverse their decision.
n Teachers must have been with the district for a minimum of 12 years.
nTeachers that agree to the severance package will receive a payout of $50,000 over 60 months.
Kristy Spann, BEA president representing about 190 teachers in the district, praised the board’s decision considering the tough economic times.
‘I’m confident that there will be enough teachers taking the early retirement incentive to make it a great cost-saving measure for the district,? said Spann. It’s also a great opportunity for teachers who have given many years of service to the Brandon community and, of course, a beacon of hope for those teachers who are currently slated to be laid off.?
Spann said that Educators Preferred Corporation, who organized the plan, scheduled one-on-one financial planning meetings to help teachers that qualify for the severance plan decide if it’s right for them.
The BEA is now in the first year of a three year contract with the district which started in spring 2006 and goes through the 2009 school year.