Press Release
The Petoskey Public Schools offers a plan to Reduce their Budget $1 million over a Ten Year Period!
Petoskey, MI April 29, 1997:
The Public Schools of Petoskey projects 10-16 teachers who are near or at the top of the pay scale will accept an early retirement offer this year. As a cost containment tool, the district is offering a one-time incentive to teachers and administrators who meet defined eligibility requirements. The district expects a salary budget reduction of over $1 million in ten years. The plan, known as the "VIP" Voluntary Incentive Plan, was structured by administration, the respective bargaining units, the Board of Education, and Educators Preferred Corporation, a consulting firm specializing in such plans.The district’s objective is to reduce the number of staff earning the highest salaries of $65, 000 or more. Teachers with one to three years of experience would be hired at an average salary of $40,000. "This is part of a comprehensive, long-term solution to a growing fiscal crisis," said Administration.
The Public Schools of Petoskey faces a budget deficit, and staff is in the process of recommending ways to balance the budget. After studying other early retirement plans, the board decided to adopt a plan specifically designed to address district objectives. The consulting firm EPC has implemented over 125 such plans in Michigan districts and colleges, such as Plymouth-Canton, Lansing, Wayne-Westland, Woodhaven, Hamtramck and East Lansing. The firm’s costs are more than off-set by the savings to the district and all administrative aspects of the plan are provided by EPC.
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