COAL TOWNSHIP - Shamokin Area School Board voted Tuesday to increase incentives to entice long-tenured teachers into early retirement prior to next school year.
The board is also proposing to eliminate tuition reimbursement for teachers.
The Shamokin Area Education Association must now review the proposals and its members must decide whether or not to accept them.
The proposals came during a board meeting at which more than 100 parents, students and staff attended,
with the size of the audience forcing the meeting to be held in the middle/high school cafeteria.
Many in attendance were there in support of keeping the district's swimming pool open in light of looming budget cuts.
The proposals are the latest made by school directors in order to decrease an estimated $4.6 million budget deficit for the 2012-13 school year. A final budget must be passed by June 30.
Teachers employed 25 years or more and at least 10 years at Shamokin Area are already eligible for an early retirement incentive that pays $16,000 up front and an additional $6,000 paid over five years, said Steve Curran, district business manager.
The board proposal would give qualified early retirees an additional $10,000 for up to seven years or until they reach age 65. That money would be placed into a Health Reimbursement Account (HRA) to be used for acceptable health care costs.
The above incentives would now also be eligible to teachers with 25 years total but less than 10 years at Shamokin Area, with the caveat being that $6,000 would be paid into an HRA for five years total.
According to the International Revenue Service website, there are no reporting requirements for HRAs on income tax returns. The contributions are excluded from gross income and anything left over can be carried forward from year to year.
The money is not eligible for use on anything other than qualified medical expenses, according to the IRS.
The board proposal says at least 10 professional staff members must opt into the early retirement agreement for the incentives to be paid out.
Directors Brian Persing and Ron McElwee have previously been credited with spearheading the initiative to boost the early retirement incentives. Persing has said that if 12 people opt to retire early, an estimated eight jobs could be saved through attrition.
Salaries across the board at the district - from teachers to support staff and beyond - were previously estimated at $12,459,053 in 2012-13, up slightly at $135,274.
Employee benefits, however, are expected to rise dramatically, totaling $6,526,812 and up $1,042,826, due in large part to increases in retirement contributions and tuition and health reimbursements.
If the union were to forgo tuition reimbursements, Superintendent James Zack said Tuesday that the district could save an estimated $100,000 heading into next year.
The contract with the Shamokin Area Education Association expires at the end of the 2012-13 school year.
School pool
With the size of the impending deficit, it appears almost nothing is off the table when it comes to balancing next year's budget.
Apart from employees potentially losing their jobs, extracurricular activities could also be in jeopardy.
To prevent the possible closure of the district swimming pool, the swim program is hosting a fundraising event this summer to raise money to help offset the estimated $45,000 it takes to keep it up and running.
"The solution to that problem is what programs we can initiate and bring to the school to raise funds for (the pool)," Rich Kashnoski, district swim coach, said Tuesday after the meeting.
The school board voted to approve a swim clinic - Mutual of Omaha BREAKout! Swim Clinic - that will bring two Olympic medalists to Shamokin Area for a one-day program.
Kashnoski said five-time medalist Josh Davis, formerly of the U.S. Swim Team, will be on hand for the event Aug. 26. Another Olympic medalist is also guaranteed to be at the event.
"What better way to celebrate swimming than to bring an Olympic athlete to come and teach our kids to swim," he said.
The event is sponsored by the high school and Shamokin Stingrays swim programs. Up to 80 swimmers are eligible to register by contacting Kashnoski at richkashnoski@yahoo.com or 847-2503.
Kashnoski said he hopes $10,000 is raised for the district.
"If we can raise that, that is a big chunk of change," he said.
Bob Getchey, school board director, said during Tuesday's meeting that a lot of jobs could be lost in the near future due to Shamokin Area's financial crisis.
The district's fiscal problems - shared by most public schools across the state - could also bring about a pay-to-play fee for students to take part in sports activities, something he hopes to avoid.
While Getchey said board members never said they were going to close the swimming pool, the possibility remains.
"We never said we were going to close the pool. We would have to vote on that," he said. "We said we could close the pool and that might happen."
The stress of balancing next year's budget was reflected in another statement made by Getchey.
If he knew the crisis facing the district, he said he never would have campaigned last year to get elected to the school board.
"This is going to be a sad day in Shamokin and Coal Township," he said of when next year's budget is passed.
Getchey blasted Republican Gov. Tom Corbett for the state of school finances and urged district residents to contact state Sen. John Gordner, R-27, or state Rep. Kurt Masser, R-107, to express concern over Shamokin Area's budget woes.