COAL TOWNSHIP - Board members and administrators of Shamokin Area School District have agreed in principle to cut administrative salaries and benefits.
The agreement would terminate a planned wage increase, call for contributions to be made toward health benefits and reduce an annual health stipend to the district's 12 administrators.
A majority of the savings, however, are a result of attrition with the demotion of one administrator and retirement of another.
Ron McElwee and Charles Shuey, board directors, and Chris Venna, middle/high school principal, confirmed Monday that a tentative agreement has been reached which, according to figures provided by McElwee, would result in an approximate 20-percent savings.
Calling it a conservative estimate, McElwee said the savings total approximately $272,000.
The proposal was negotiated by some board members and administrators on April 17, Venna said.
To become official, it must be voted on and approved by the nine-member school board.
Next step
McElwee called the proposal a good start for what seems to be the next step - asking for concessions from the teachers union.
According to McElwee, Shamokin Area could save $500,000 and restore some of the furloughed staff if the union were to agree to forego planned raises in 2012-13.
"I'm a firm believer that attitude reflects leadership and this is a very good sign from the administrators to save that kind of money right off the bat," he said.
"It's a waiting game. We have to see if teachers are going to jump on board, too," he said. "If everybody could make concessions, it could help us for next year to where they could start bringing some people back."
Forced to reduce a deficit that had once topped $5.6 million, the school board voted last month to furlough 21 staff members, 19 of whom were teachers.
That move wiped out the music, art and physical education departments in the elementary and middle schools, leaving the district to find alternatives to provide those lessons.
Directors Robert Getchey, Jeffrey Kashner and Brian Persing all said following Monday's athletic committee meeting that they supported the cuts recommended in the memorandum.
All also acknowledged that the teachers union should follow suit, with Kashner adding that members of American Federation of State, County and Municipal Employees should do the same.
"Everyone got compensated year to year to year with raises when other institutions had none," Getchey said of teacher raises while other government employees faced pay freezes. "Now they should give back to the school."
"We're all in this together and must come together to help the school," Kashner said.
Details
The district's 12 administrators have agreed to several concessions, Venna confirmed, including foregoing the 5-percent raises in 2012-13 called for in their existing contract.
They would also be required to pay 1-percent of their annual salary toward health benefits, for which they currently make no contributions, and reduce an annual medical stipend from $4,000 to $1,500, according to McElwee.
The agreement is a memorandum of understanding and would alter Act 93, the administrative contract, for 2012-13 only. However, the contract would be revisited annually, and could again be altered, until its expiration in 2016.
The nine-member school board must vote to approve the memorandum to make official the proposed changes.
The vast majority of savings on the administrative level would be through attrition.
Ruby Michetti, curriculum coordinator, is to be demoted from her administrative position to an English teaching assignment. Couple that with the confirmed retirement of Tim Latshaw, technology coordinator, and a combined $223,480.64 in salary and benefits would come off the books.
That would leave administrative salaries and benefits for the remaining administrators at $1,151,200.94 next school year, if the proposed agreement is made official.
A stipulation of Michetti's demotion could cause legal wrangling. If Michetti refuses to accept the demotion, she is entitled a hearing.
Shuey said he expected the technology coordinator position would eventually be filled from within.
If he has his way, that position would no longer be considered administrative, would have a lesser salary and would be not subject to the perks of Act 93.
Not good enough
Venna termed the proposal for administrative cuts as "prudent," saying, "We're the leaders of the district and felt it was important to take the lead on making concessions."
He said the proposal could be finalized in the coming days.
Shuey agreed with both Venna and McElwee - to a point.
While he was glad that concessions have been reached, Shuey said administrative cuts should be much more substantial.
Even though he said he would vote against the agreement as proposed, he did credit McElwee with leading negotiations.
"I hate to say it because we did make some headway with the administration. While it's a good start, I just feel in view of what we had to do ... that it just isn't adequate," Shuey said, remembering the 21 staff members furloughed last month.
"I feel further cuts are needed" on the administrative level, he said.
Specifically, he said the district should abolish its matching contribution - which is up to 4 percent - for administrators' tax shelter annuity.
He also said the health stipend should be eliminated, raises should not exceed 3 percent, and health care contributions should be at least 5 percent.
"To have a health care program in this day and age with no co-pay is unheard of," he said of the current contract terms.
The 5-percent raises due administrators would be eliminated under the proposal. Under Act 93, raises for 2013 through 2016 would be 4 percent, 3 percent and 3 percent respectively.
Remove the label
Shuey has previously said the number of administrators should be reduced from 12 to seven and stuck to that position when asked Monday.
He said the positions of maintenance supervisor and athletic director should not be administrative, and under current fiscal circumstances, neither should the positions of special education coordinator and technology coordinator.
Those positions would not be eliminated if the administrative titles were removed. While they would lose the benefits laid out in Act 93, they would remain full-time and be subject to the same benefits teachers receive, Shuey said.
The positions of superintendent and business manager are not a part of Act 93, however, James Zack and Stephen Curran, superintendent and business manager respectively, adhere to the contract terms.
The next regular meeting of the Shamokin Area School Board is set for May 15 at the middle/high school.