Wayne-Westland Community
SchoolsVoluntary Incentive Plan
Press Release - Executive Summary
Possible $50 Million in Budget Reduction Over Ten Year Period
The Wayne-Westland Community Schools VIP attracted 181 teachers and administrators who are at or near the top of the pay scale will accept an early retirement offer this year. As a cost containment tool, the district is offered a one time incentive to teachers and administrators who met defined eligibility requirements.
The district expects a salary budget reduction of over $20 to $23 million in five years and $50 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. Discussions between the board and the teachers union were held over the last several months. The Board unanimously approved the plan January 11, 1995.
The districts objective is to reduce the number of staff earning the highest salaries of $55,000 or more. Teachers with 1 to 3 years of experience would be hired at an average salary range of $26,000 to $30,000. "This is part of a comprehensive, long-term solution to a growing fiscal crisis," said Mr. Dan Slee, Assistant Superintendent.
Wayne-Westland Community Schools faces a budget deficit, and staff is in the process of recommending ways to balance the budget. Program cuts are hoping to be minimized. After studying other early retirement plans, the board decided to adopt a plan specifically designed to address Wayne-Westlands objectives. The consulting firm EPC has implemented over 80 such plans in districts and colleges, such as Plymouth-Canton, Lansing, Evansville, Woodhaven, Hamtramck, and East Lansing. The firms costs are more than off-set by the savings to the district and all administrative aspects of the plan are provided by EPC
The Offer: a one time offer to unions representing teachers, administrators, and other select staff who are at the top of the pay scale, and have been with the district at least 4 years. Employees not at the top of the pay scale but have ten or more years of service with the district are also eligible. Unused sick leave will be recognized in the plan offer.
5 Year Savings Projections:
181 opting/150 replaced
$23,296,000
10 Year Savings Projections:
181 opting/150 replaced
$51,295,00
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