Lansing School District Offers Successful Early Buy-Out
Voluntary Incentive Plan Summary
The Lansing Board of Education and the Lansing Schools Education Association adopted EPCs Voluntary Incentive Plan (VIP) in the 1992-93 school year. EPC designed the plan and worked closely with district administration and the education association to implement the plan. Normally the district expects 35 teachers to resign/retire. The VIP was highly successful, with 153 teachers, ages 40 to 68, electing the early out incentive. Of those opting, 48% were age 56 or younger.
Working with the districts business and personnel offices, EPC prepared a feasibility study that projected the effects of the plan. The study was reviewed by the CPA firm of Maner, Costerisan, & Ellis, PC, Bruce Dunn, CPA and Mike Drake, CPA. Plan documents were reviewed by the law firm of Thrun, Maatsch & Nordberg, PC, Pat Berardo, Atty and Jim Maatsch, Atty.
Dr. Richard Halik, Superintendent, Lansing School District, says "EPC worked with our staff and delivered 110% of what was projected. We are quite pleased with the results, especially with the tough environment schools are faced with today."
Dr. David Smith, Comptroller, Lansing School District, Says "EPCs incentive program was successful as we had hoped. The bottom line is the district has a rare opportunity to reduce salary costs without difficult layoffs."
Ms. Nancy Erickson, Board President, Lansing School District, says "The Board needed to take action to reduce our future salary expenses and maintain high education standards at the same time. The VIP allowed us to address our budget problems and also had a positive impact on staff morale."
Mr. Steve Cook, CPA, Director of Payroll, Lansing School District, says "Every district should look at EPCs package. The only way a district can significantly reduce the budget is through salary cuts. An effective incentive plan such as EPCs VIP is a true win-win for the district and the employee."
Ms. Betty Springer, President, LSEA, says "The Education Association and the Board of Education joined hands. Our membership was in favor of EPCs incentive plan, knowing that layoffs were imminent. The benefit was meaningful and the counseling provided was very valuable to participants."
Mr. Jim Boerma, UNISERYV Director, MEA, says "We needed a successful plan and we got it. EPCs plan is the most complete weve seen, and it works!"
Mr. Bruce Dunn, CPA, Auditor for Lansing School District, in his evaluation of the plan noted that "A key point to remember is not what plan is the least costly but rather what type of plan will act as an incentive to motivate employees to resign/retire early, thereby creating the greatest savings to the districts."
In summary, the plan had positive effects on budget, staffing, and the overall educational process.
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