1/13/98

JACKSON SCHOOLS

Jackson Public Schools is expected to lose about 50 teachers and administrators and save up to $6.8 million through an early severance plan approved Monday. The buyout will make it possible for the district to build up a fund equity, said Georgia VanAdestine, secretary of the school board. The board has said it wants a 5 percent fund equity – roughly $3 million "in the bank" – by the year 2001. The buyout plan is available to all teachers and administrators who are at the top of the pay scale and have 10 or more years of service with Jackson Public Schools.

The buyout will be implemented by Educators Preferred Corp., an outside consulting company that specializes in buyout plans. The company gets $200 for every employee that opts for the plan. Educators who accept the buyout will get their 1997-98 salary divided into equal monthly payments over the next 10 years. The benefit is capped at $417 per month. Those who are eligible to retire could do so, and younger teachers may take the monthly bonus and change careers.

The consulting firm’s vice president, Timothy Bell, estimated 50 teachers and administrators will take the buyout; the firm bases that number on a model is has developed who takes buyouts, which is 97 per-cent accurate. Depending on different variables, the district could save as much as $6.8 million over the next 10 years. The cost savings results from replacing high-salaried veteran teachers with teachers at or near the bottom of the pay scale. The savings depends in part on how many special-education teachers bump into general-education spots. If a significant number of special-education teachers move over, the savings is reduced. The period to sign up for the buy-out is from February to April 6.