03/31/2023
Written by a local resident:
In the past few weeks, I've watched BOE monthly meetings and a work meeting, and Mr. Espy's Money Matters meeting. The main topic of conversation has been our district's financial outlook and the need for an operational levy.
The financial downward spiral is a problem for other districts too. See Mr. Espy's chart below.
At Monday's work meeting, board member Melissa Nolan addressed our district's largest expense - salaries and benefits. Since 2013, salaries and benefits have increased 52%. Staffing has increased 3.7%. Yet student enrollment has remained flat.
On a side note, while student enrollment is currently flat, there's a possibility that it will drop in 18 months. There is a bill (HB-11 aka The Backpack Bill) being considered by our state legislature that, if it passes, will give parents the option to have their children attend private school or be homeschooled, and the state's share of funding will follow the student. There are no income restrictions. And it would go into effect for the 2024/2025 school year.
At the work meeting, board member Jerry Combs highlighted some of the benefits the school district offers that are above state minimum.
- The district fully funds an HSA (Health Savings Account) for all 827 full time employees at $3,600 a year. This benefit costs the district 3M per year.
(To put this in perspective, private employers' average annual contribution for HSAs is around $600 for individuals and $1,250 for family plans.)
- The state minimum for sick leave accrual is 120 days, we offer almost twice that. Our sick leave payout (days they can cash in when they leave) is 58 days. The state recommendation is 30 days. Our cost of sick leave accrual and sick leave payout above the state minimum is 1.2M per year.
- We fund STRS (State Teachers Retirement System) at 14%. We fund SRS (School Retirement System) (for other school employees) at 10%. We fund retirement for Administrators from 24% to 28%.
- Thirty-five administrators have "Pick-up on Pick-up", which means that we pay their share of retirement contributions to SRS, and that amount is also included in the member's salary for SRS retirement purposes. Pick-up on Pick-up is above the state mandated retirement funding. This costs the district 580K per year. During the state audit in 2008, the state recommended that our district eliminate the Pick-up on Pick-up.
Board member Combs believes that every dollar above state minimums should be on the table. He acknowledged that some of these benefits are included in the union contracts and cannot be negotiated until the contracts expire. Mr. Espy stated that the classified contract expires in 2024, and the teacher's contract expires in 2026.
Board member Nolan expressed her concern that they are asking taxpayers to fund benefits that most taxpayers don't receive themselves. Board members Emily C and Emily M, and Superintendent Speiser, are concerned that if we reduce benefits, some employees may leave and go elsewhere.
In conclusion, only see four possible solutions. 1) The district makes no significant changes, and residents dutifully comply with what the district asks. We continue to pay permanent operating levies every three years, until we can no longer afford to live in our homes. 2) Cut expenses by reducing above state mandated benefits, and renegotiate the contracts for personnel and services as they expire. With this option, we would still need a levy, but possibly one that isn't as large. 3) Vote in an Earned Income Tax. Revenue would increase as wages increase, so new levies wouldn't be needed. This option will also assure that seniors on a fixed income are protected. Or 4) Reject the levies, and the state will have to provide oversight. When the state ends up having to manage many districts, they will be forced to change the way they fund schools.
