District issues buyouts, layoffs

BY WRIGHT WILSON

For The Mirror

To contain costs and offset cuts in state aid, the Ferndale School District offers an early retirement incentive to teachers at the high end of its pay scale. At the same time, the district issues layoff notices to 37 teachers with low seniority. Administrators and teachers’ union officials hope the 37 can be recalled if enough teachers accept the Voluntary Incentive Plan, known as "VIP." The one-time proposition, which eligible teachers can accept this year or next, offers as much as $450 per month for 10 years. "In order to safeguard the school district from cutbacks from the state in the adult education area, we’re finding it necessary to cut back staff," says Personnel Director Ray Wolf. "Perhaps we can minimize cuts or not reduce the staff at all through (VIP)."

The district projects that 25 to 50 teachers of kindergarten through 12th grade will accept the offer before the end of the school year, saving the district $5 million in five years. "It’s a decision I would hope is reached only after careful planning and deliberate thought (regarding ) finances, not just someone hoping to opt out." Wolf says.

Approximately 200 Ferndale teachers are eligible for VIP; says Tim Bell of Educators Preferred Corp., an educational cost-management firm that has implemented similar plans in 80 districts and colleges throughout Michigan. "The (school) board has to be concerned with reducing the budget by ‘X’ Million dollars," Bell says. It’s a matter of choosing and reducing the staff involuntarily or making staff changes that are meaningful." The idea behind the plan is to reduce the number of teachers who have worked their way up the pay scale and replace them with personnel who can be employed at a lower cost.

Ferndale teachers salaries range from $29,022 for those with bachelor’s degrees and no prior experience to $56,868 for teachers with master’s degrees and maximum experience, according to Wolf. "We were skeptical of where the savings would occur when we first saw the plan. We had to see how it benefits our district, and we were shown that," Wolf says. "We investigated other districts where its worked." If enough teachers accept the incentive, Bell says, the district will not be "locked in" when hiring teachers down the line. "They don’t have to hire at the lowest salary step," he says. "They can hire quality replacements."

Martha Kinney, president of the Ferndale Education Association local teachers’ union, believes VIP has merit and could sway those candidates who are undecided about retiring early. "This is really a good deal for them," she says "and the cost savings enable the schools to retain programs that would not have been possible due to budget cuts." An elementary-school art teacher and 32 year veteran of the Ferndale district, Kinney is eligible to accept the plan this year but says she won’t because she "still loves teaching."

Meanwhile, 37 teachers began receiving layoff notices last week in what administrators called a "regrettable" action. Those employees lose their jobs on June 30 if a sufficient number of teachers do not accept the buyout offer. "I’ve been pink-slipped," Kinney says. "I’ve been through this, and I know it’s upsetting. But I would expect most (of those who are laid off) to be called back before the school year is out. That way, it’s good for the morale, and the district would not have to pay unemployment costs through the summer.