School retirement process a concern

Jun 10, 2010 — The Telegraph (Nashua, N.H.)

Michael Brindley

Jun. 10, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- NASHUA -- While it appears money budgeted for severance costs can now be used to save some teaching jobs, concerns remain about the process used to determine how many teachers will retire each year.

The Board of Education had set aside $1.8 million in its budget for next year to cover the cost of severance packages for teachers retiring at the end of this school year.

It now appears that $480,000 of that will be used to restore the 15 high school teachers that were cut. Superintendent Mark Conrad said he will recommend to the Board of Education at a meeting Monday that the money be transferred, which will mean freshmen and sophomores will be able to take a full, eight-credit course load and will not be required to take study halls.

"This has been a question we've been looking at carefully. We've wanted to be conservative," Conrad said. "On the other hand, I don't want to lose the opportunity to restore those credits."

Although other city officials have been more eager to dip into the severance account, Conrad has put up some resistance, considering the city only had $800,000 set aside last year and ended up spending $1.77 million.

The problem, Conrad said, is that there is no way of knowing how many teachers are going to retire as the district prepares its budget for the next year. The district has to plan ahead to pay severance packages for teachers who retire this year in next year's budget.

"I think the process is a concern," Conrad said. "We don't really have a sense of what our liabilities are, and as the cost of severance has gone up, it is a process we need to look at."

Currently, teachers can submit a letter of intent to retire in February, but those are non-binding. Ninety-nine teachers submitted letters this year, and as of this week, there are 56 teachers who remain uncommitted. If all of those teachers retired, it would cost the district $1.6 million in severance packages.

Conrad said there is no set date for when teachers have to make a decision. That process is established by the teachers contract, which expires at the end of the 2010-11 school year.

"There is no final deadline written into the contract," Conrad said, adding that typically, most retirements are finalized by the middle of July. "The difficulty for us is then it's really too late to start bringing back those teaching positions."

Conrad said the district could also create an expendable trust fund to ensure there is money set aside in case severance costs run over.

Board of Education President Bob Hallowell said the union rejected a sidebar agreement to the contract that would have required teachers to make a decision by sometime this month. Instead, the union asked its members to voluntarily decide, and 31 teachers ended up rescinding their resignation letters.

In speaking to the aldermen Monday night, Hallowell expressed frustration with the union that members couldn't reach an agreement on a sidebar "which would have made this a much easier decision."

Hallowell pointed out that many other contracts require teachers to give advance notice of up to a year on when they plan to retire in order to get their severance packages. With a new round of contract negotiations coming up, "this will certainly be something to look at," he said.

Several aldermen on Monday night also criticized the union for not doing more to ensure the district has a better understanding of how many teachers were going to retire.

"Assuming that everyone knew what the situation was, this is a clear case where there are people who will lose their jobs if an action of convenience is not taken by other people," said Brian McCarthy, president of the board.

Union President Bob Sherman was not available at his office Wednesday but said previously that he didn't think a sidebar agreement was necessary.

The average severance package ballooned by 50 percent after a change in the way the payouts are calculated. In the new teachers contract, teachers can cash out on up to 100 sick days, which are paid out on a per-diem basis based on their current salary. Previously, teachers could get paid for 180 days, but at the starting salary rate.

If the Board of Education approves restoring the 15 high school teaching positions, Conrad said the district will move forward with filling them. He cautioned that doing so will not be easy. Twenty-one teachers have been laid off, and Conrad said they are all likely either seeking other jobs or in some cases may have already found other jobs.

The impact of having to cut those 15 positions has been felt throughout the district, he said. Art and physical education teachers in the elementary schools and middle schools had to be laid off because of those cuts, he said.

"It's going to take some time to bring those positions back," Conrad said.

The district has already asked eighth- and ninth-grade students what classes they would take if the eighth credit is restored next year. Positions will be filled based on what classes students have requested, Conrad said.

Newstex ID: KRTB-0136-45950596