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Teacher retirement costs raise concerns
In the ever-tense climate of school budget crunches, Willows Unified School District continues to try to find ways to cope.
At Wednesday night's school board meeting, trustees discussed lifetime benefits for retirees and the impact on cash flow.
Shelley Amaro of the Willows Unified Teachers Association suggested the money spent on lifetime benefits could be used "for survival of the distract."
Post-retirement benefits cost the district $529,000 a year, according to Betty Skala, director of business services. That includes as much as $116,000 paid in medical insurance benefits. The cap for coverage for classified employees is $11,611.
When teachers retire, the insurance benefit also rolls over for their spouses. Skala noted that when teachers retire at age 55, they get 10 years of medical coverage. At age 65, Medicare kicks in.
"There is a monumental cost to this district. It is a very generous package," Skala said.
Board President Sherry Brott said she "sees this as a liability to our district, especially for age 55 retirees."
She recommended finding out what packages other school districts offer and continuing the discussion when more information is available.
The biggest concern is the longterm impact of lifetime benefits on the overall budget.
Skala said that state revenues are down again, noting "it's nothing we haven't heard.
A recent article in the California School Boards Association newsletter suggested, "there could be more cuts" and "more economic challenges for the state and schools," Skala reported.
"We need to be prepared," she said.
She already is concerned about the cash situation.
"In August, we will be short because the state is not giving us the cash" it normally would — the result of state cutbacks, Skala said. Right now, "we are using reserves to balance the budget and that causes no cash flow."
"Using the reserves depletes the reserves and cash," she added.
Randy Jones, finance director for Glenn County Office of Education, said "we are looking at a countywide solution," but details have not been worked out.
If Willows Unified is not able to overcome its budget woes and runs out of cash, it could have to take out a loan and fall into state receivership, Skala said.
In receivership, the state's Fiscal Crisis and Management Assistance Team takes over, with a goal "to get districts back on track."
Board member Susan Domenighini commented that "the state is not giving us cash, then will put us in receivership."
Contact Lydia Harris at 934-6800 or lharris@tcnpress.com.
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| I agree with "I know, I'm there". Time for some new blood on the board. 11 yrs. is long enough for 1 person to serve. They become invested in the politics and are no longer effective. |
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| Anne - Nov 09, 2009 05:38:57 PM | Remove Comment |
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| What ever happened to the Board giving up their monthly payment. Domenagini is the only one left on that board has any sense at all. Come on Board give up your pittance. Its about eleven thousand dollars between all of you per year. At least the kids could drink out of functional water fountains. Give it up or get out. Cant wait to see who runs for your seats next year. The oaf with a phd needs to go too. Bring back Wayne, or hire Jerry at least he knows what is going on. |
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| give it up board - Nov 09, 2009 12:02:18 PM | Remove Comment |
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| I'm just a bystander, the explaination is due to the teachers the board needs to communicate with their representatives, WUTA. |
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| abner - Nov 09, 2009 11:34:52 AM | Remove Comment |
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| abner, please call the district office and ask that this be explained to you. Your questions are good and can be explained but would be better explained one on one or at a board meeting than trying to explain here. There is contract language involved in the explanation. |
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| sbrott - Nov 09, 2009 11:02:49 AM | Remove Comment |
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| It be great for the kids tax payersthe boad has let the kids down they need the best City Manager Steve Holsinger has said he let no new jobs come to willows now the City Council work for him It take 250 people to start unincorporat the city so if you need a job that you don't have to leave town it up to you if you have kids all the City Manager Steve Holsinger and willows City Council is leaving your kids is welfare drugs are suicide |
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| a - Nov 09, 2009 10:36:10 AM | Remove Comment |
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| The lifetime benefit issue has been the 800 pound gorilla in the room for years and was always ignored because the majority of the folks getting it, or so it seemed, were the retired administrators. At that point many in WUSD “power” were in line for them too, go figure. Classified had it too but a couple, at least, that were going to be able to claim lifetime benefits were “cut loose” before they could. I wonder how many are still in line to get this benefit and what they might be offered to forfeit it. The district still can’t, or won’t, say if the ones over 65 and getting the lifetime benefits currently are using it to pay for a Medicare Supplement or buying the full CVT plan. The district might save some money if, after 65, the benefits were reduced to pay the cost of a supplemental only or just ended at 65 as with the teachers. We see so much concern about this money but we don’t really know exactly how much is being spent on lifetime benefits and what you are getting for your dollars. Will we ever figure this out? |
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| abner - Nov 09, 2009 09:22:21 AM | Remove Comment |
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| My wanting to stop paying post retirement benefits or life time benefits is a way to cut costs. It has nothing to do with the job that an employee does or has done. We need to cut over 1 million and these are two things that can be looked at. |
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| sbrott - Nov 09, 2009 07:48:25 AM | Remove Comment |
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| Looks to me that it is time for the district be as open with WUTA as Mrs. Brott is here. By the way, teachers may indeed retire with 15 years service to the district but Mrs. Brott doesn’t mention that a majority will have far more total service. The 15 teachers that retired last year, with district encouragement, had over 400 years of combined experience, or almost 27 years average. |
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| abner - Nov 09, 2009 07:33:09 AM | Remove Comment |
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| I need to clarify. I have not ALWAYS voted in favor of raises for the management when I have voted for increases for teachers and classified. |
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| sbrott - Nov 09, 2009 05:52:08 AM | Remove Comment |
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| I do not receive insurance from Willows Unified. I do not buy my insurance from Willows Unified. A teacher can retire with 15 years of service to the district and if they are 55 they receive the cap for their benefits, which is the 12,000 amount per year. Life time benefits were ended so no new person can now qualify but we are still paying for those who qualified before they were ended. They are paid according to contract which would be the cap. I don't like life time benefits either. You can go through past minutes and see that I haven't voted in favor of raises for management. It takes the votes of three board members to pass anything and while I have been on the board for 11 years now the rest of the board has changed. Perhaps you should run. Interesting that you think i will answer here but not an email or phone call? |
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| sbrott - Nov 09, 2009 05:46:30 AM | Remove Comment |
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| Mrs Brott, When will you finally accept responsibility for the demise our district is in. As a board member for over ten years you have been involved in every financial matter that has occurred. Do you not accept any responsibility for that. I thought not. I think it is high time for you to resign and let us elect people to the board with some brains and who really care about children. It is high time for change |
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| I know Im there - Nov 08, 2009 09:34:18 PM | Remove Comment |
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| Mrs. Brott,
A teacher can retire with 30 years of service at 55, easily. I’m sure you can appreciate the service they have given after all the years you have been on the board. You have not answered the other questions that were presented. How much does the district pay for your insurance? Are the folks with life-time benefits getting supplementary coverage or are you, WUSD, paying top dollar for the CVT coverage “retired teacher” mentioned? Pardon me if I request an answer here but anything over the phone or in an email can too easily be denied. |
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| curious - Nov 08, 2009 08:01:41 PM | Remove Comment |
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| I don't think ANY employee in WUSD if they retire at the age of 55 should expect their employer to pay over $12,000 a year for health benefits for them until they reach the age of 65. That is money that could be used in the classroom for the children. I don't hate teachers and my comments in the paper and at the board meeting were not directed to just the teachers. Instead of my commenting here anymore if you would like to discuss this you can call me or email me. Go to the WUSD web page and you will find all of the board members numbers and email addresses. |
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| sbrott - Nov 08, 2009 07:05:13 PM | Remove Comment |
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| How much does Willows pay to insure the board? |
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| curious - Nov 08, 2009 04:17:50 PM | Remove Comment |
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| It is increaseingly clear to me that WUSD has no idea what they are spending money on. They do not know enough about there own budgets to accurately account for the money they have. In her hatred of teachers Brott will believe anything she is told as long as it attacks them and not the truth of the matter. I ask you Mrs Brott - how would you educate anyone in this community without teachers. Superintendents, board members, secretaries and an expensive computer guru does not educate our children, teachers do. It is high time we clean house in WUSD with new leadership all around. BTW teachers only get health benefits until they reach 65 and then go on medicare. Let me see, your idea is to reward a teacher who has worked in our district and for our children with zero health care after they retire. The heartlessness we have come to expect from you. |
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| I know Im there - Nov 08, 2009 12:56:05 PM | Remove Comment |
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| Are you paying CVT for the LT bene's for management and classified or a medicare suppliment. That alone could be a huge savings. How many management and classified still qualify for LT bene's? |
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| a retired teacher - Nov 06, 2009 08:35:47 PM | Remove Comment |
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| Post retirement in WUSD is a significant cost to the district and an ongoing expense.
44 percent is spent on WUTA, 12 percent on management and 43 percent on classified. This amounts to about $500,000 yearly. We need to look at post retirement for all employees not just the teachers. |
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| s brott - Nov 06, 2009 06:21:19 PM | Remove Comment |
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| Please note that I should have said, some qualifying management and classified workers, not all. |
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| a retired teacher - Nov 06, 2009 05:03:03 PM | Remove Comment |
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| Only management and classified, get lifetime benefits. Teachers are on a tiered plan and must pay for their dependents. |
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| a retired teacher - Nov 06, 2009 05:00:05 PM | Remove Comment |
