The Carroll Community School District (CCSD) Board of Education opened discussion on whether they would offer voluntary retirement to eligible employees this year at last night’s (Thursday) meeting but did not take any formal action on the issue. In previous years, employees who were over 55 years old and had worked for the district for at least 15 consecutive years could apply to receive 50 percent of their most recent year’s salary up to $20,000. This shifts wage expenses from the General Fund to the Management Fund and allows for newer, and usually cheaper, teachers to come into the district. Between Fiscal Years (FY) 2015 and 2022, this was offered five times. Superintendent, Dr. Casey Berlau, says he does not see any obvious reasons why the board would absolutely need to offer it in the coming year.
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Some districts look at voluntary retirement more as a benefit rather than just a financial tool used to trim expenses. According to Berlau, the board has historically taken a middle-ground approach, only offering it when it makes financial sense but also in situations where it was not strictly necessary. According to Director of Business Affairs, Nicole McCarville, 30 staff members in the district would be eligible under FY21 qualification guidelines. She says the Management Fund has a healthy enough balance to offer the program again if the board chooses.
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On average, the board accepts six applicants when the program is offered. However, they approved 10 last year due to high interest from staff. McCarville prepared projections that show as much as $1.067 million for FY23 ending balance if they do not offer it down to $926,000 if they accept 10 again. The board can change the eligibility requirements and payout how they see fit from year to year, but they wanted more information on how the projections would change if they adjusted the age, benefit or other parameters. Board member, Cindy Johnson, says she is not opposed to voluntary retirement, but the current challenge they face in hiring educators makes her hesitant.
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She and the other board members requested Berlau and McCarville bring additional projections back for review at the November meeting. Applications are usually approved in January if voluntary retirement is offered, so it is likely the board will take formal action on the issue at that time. A copy of the budget projection sheet can be found included below.
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