This post has been updated.
Nearly 530 teachers in the San Diego Unified School District volunteered to retire next year – and they will get 100 percent of their final annual salary for doing so.
The early retirement incentive was supposed to be a money-saving move by the cash-strapped district, which is trying to plug a $124.4 million hole in its 2017-18 budget. But district documents show the payout will actually begin costing the district money in two years.
According to a district chart posted for Thursday night’s board meeting, after saving $3 million next school year, the retirements will save less than half that the following year.
In total, the retirements and payouts that come with them will save the district $4.48 million in the first two years, but will cost $5.12 million the following three years, for a net loss of more than $635,600, district documents show.
Help Us Raise $100k By the End of May
This system is due to fail. After years of failure to say NO to teachers, the costs have grossly exceeded the income. Now they continue to mistakenly see this early retirement scheme as a cost savings. So add more red ink to the future to appease the teacher's union.
Now, saying that. This is the same Board that was very vocal about "the Wall" being built and the better treatment of illegals. Why? To increase the enrollment? WHY???? They want full classrooms of non-taxpayer's kids? They don't see this as a problem?
I foresee the argument of "It is for all of the children". Tired of that one. How about it is for "The kids that we really owe an education"? We cannot continue to educate the world when our system is dying.
The school district is funded by property taxes. Property tax receipts (inflation adjusted & per capita) are higher than before Proposition 13. Pay no attention to bungling officials, they have criminally mismanaged the taxpayers' properties, and failed our children.
Maybe the thinking is " Save money now, fix the problem later" We can always hope :) I would think that teachers will get some kind of percentage raise in salary by year 5. Those who took the SERP will not get that raise , only the lower paid teachers who remain . Is that not a fair assumption?? Maybe there will be some savings after all.
@John Kennett Sadly, it's just that kind of thinking that got the district into the financial crisis it's in right now. The district is looking at nothing but looming costs--dramatic increases in CalSTRS and CalPERS pension payments (from 12.58% 10 19.1% and 13.89% to > 21.6%, respectively) over the next five years, increases in payroll due to Step (approximately 2.5% annually) & Column, increases in health and welfare benefits (7% annually), etc.--while state spending on education is plateauing. Using "savings" now will just create a series of budget crises--and cuts--for the foreseeable future.
The list of rescinded reduction in force (485 people) was posted as part of the Board agenda at http://www.boarddocs.com/ca/sandi/Board.nsf/files/AM9V6C7F3170/$file/Rescinded%20Reduction%20in%20Force%20Notices%20List%205.11.2017%20-%20Att%20A.pdf
That said, it's not clear whether these were all due to a 1:1 match of positions to those vacated by the SERP or whether it was also because elementary prep time was restored (which the district hasn't publicly stated but is stated on the SDEA website). It's also not clear whether these reductions are part of assumption #3 "100% replacement of positions" since the numbers aren't the same (485 rescinded vs. 528 taking SERP). It does seem to include those that the administrative law judge deemed to be rescinded.
P..S. Look at next week's board meeting, agenda item H.4. District staff are recommending additional SERP that would cost the district more than $21 million over the next 5 years. Seriously?!
If the district is in financial crisis, they can't afford to do this...
@EducatedMom Just posted an article on the other incentives approved last night. They say the numbers shared publicly do not reflect the district's plan -- and they don't have real numbers yet. http://www.voiceofsandiego.org/topics/education/school-district-oks-retirement-deals-without-knowing-anything-itll-cost/