March 29, 2024

NCSD approves early retirement program

The Newton Community School District Board unanimously approved an early retirement program during a special meeting Monday night. Under the early retirement plan, teachers more than 55 years old with 10 years of service in the district are eligible to take advantage of the plan.

“I took a look at the past process we used in the school district, and I reached out to other school districts about what they used for the early retirement program,” NCSD Director of Human Resources Laura Selover said.

Selover laid out a notice with recommendations for the board to vote on. Board member Ann Leonard moved to approve the notice and to limit the cost of the program to $260,000. Those eligible under the plan would receive a payout of 25 percent of their base salary and $50 per sick day up to 180 days.

With the state of Iowa’s budget facing a $37 million shortfall, legislators have told district administrators they can’t expect any fiscal relief, despite hopes the state would raise the Cost Per Pupil, or CPP allotment, which is currently at $6,664 per student.

“We can squeeze by with a maximum of $260,000,” Gayle Isaac, the district’s director of business services, said. “This will help mitigate our budget deficit going forward.”

The recommendation is for certified staff members to apply first and then see if there are any administrators or non-certified staff who are interested.

There is potential that the positions of the individuals who take advantage of early retirement may not be re-filled, according to Isaac. Others, due to the critical nature of the position, would have to be filled if retirement is selected.

“We said in April we didn’t set money aside in our budget, and in December we didn’t have the money, so why is it possible now that we can bring it back to the table?” board president Travis Padget asked.

Isaac said the NCSD had low expenditures from last year.

“We received two rebates that totaled around $120,000,” Isaac said. “Then we had a reduction on this year’s insurance premium.”

The district approved a 2 percent raise for the 2017-18 school year, as well as an additional 2 percent raise in the 2018-19 school year, increases Superintendent Bob Callaghan said have cost the district an additional $500,000 to $700,000. District officials have been unwilling to make the needed cuts to balance the books, or have hired additional staff, which has increased the budget.

Principals at each school in the district are tasked with determining their staffing needs, but Callaghan said it’s clear some cuts need to be made.

“I just want everyone at the board table to understand that this will be the fourth year in a row of uncharacteristically low supplemental state aid from the state of Iowa to the public school system, and this is a very difficult issue,” Callaghan said. “1.11, 2.25 and 1.25 and this year it could be zero — so we would be in a totally different scenario if we were receiving 4 percent.”

The board approved that NCSD employees submit their interest forms by Jan. 26, the actual deadline for forms was set for Feb. 16 with letters of acceptance going out Feb. 19 or later.

The board agreed that it’s in the best interest of the employee to submit an interest form so the board can begin the process.

“We want time to prepare and to look through their work history,” Callaghan said. “This will take a lot of preparation.”

Contact Kayla Singletary at 641-792-3121 ext. 6533 or ksingletary@newtondailynews.com