Little Rock School District APR 1 5 1994 Early Retirement Incentive Program for Teachers , . OtJice of Dosegrey. Application .ng The purpose of the Early Retirement Incentive Program is to reduce recurring District expenditures for salaries without reducing individual salaries for teachers or teacher salary schedules. A. The Early Retirement Incentive Program will be in effect for the 1993-94 school year only. B. Teachers who are at Step 16 or above on the Teacher Salary Schedule are eligible for the Early Retirement Incentive Program. C. Participating teachers are not required to retire under the Arkansas Teacher Retirement System. D. Participating teachers are not required to retire from the teaching profession. E. Participating teachers may be employed in another Arkansas School District. F. Teachers must complete the application form for participation in the Early Retirement Incentive Program, indicate beneficiary(s), and submit to the Director of Human Resources by May 20, 1994. G. Applications received after May 20, 1994, will not be considered. H. Applications will not be rescinded after Board approval. I. "Current salary" as used below includes salary paid from the teacher salary schedule at the time of application. "Current salary" as used below does not include any other compensation including stipends paid under Appendix B (Supplementary Pay Schedule). J. Early Retirement Incentive Program compensation will be determined as follows: 1. Eligible teachers less than 56 years of age on the May 20th application deadline will be paid one hundred percent (100%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 2. Eligible teachers 56 years of age on the May 20th application deadline will be paid ninety percent (90%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 3. Eligible teachers 57 years of age on the May 20th application deadline will be paid eighty percent (80%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 4. Eligible teachers 58 years of age on the May 20th application deadline will be paid seventy percent (70%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 5. Eligible teachers 59 years of age on the May 20th application deadline wiU be paid sixty percent (60%) of current salary divided in five (5) annual equal installments, one (1) each January 15.6. Eligible teachers 60 years of age on the May 20th application deadline will be paid fifty percent (50%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 7. Eligible teachers 61 years of age on the May 20th application deadline will be paid forty percent (40%) of current salary divided in four (4) annual equal installments, one (1) each January 15. 8. Eligible teachers 62 years of age on the May 20th application deadline will be paid thirty percent (30%) of current salary divided in three (3) annual equal installments, one (1) each January 15. 9. Eligible teachers 63 years of age on the May 20th application deadline will be paid twenty percent (20%) of current salary divided in two (2) annual equal installments, one (1) each January 15. K. L. M. N. O. 10. 11. Eligible teachers 64 years of age on the May 20th application deadline will be paid ten percent (10%) of current salary in one (1) installment on January 15. Teachers 65 years of age or older on the May 20th application deadline are not eligible to participate in this program. Teachers will begin receiving installments on January 15, 1995. Participating teachers in the Early Retirement Incentive Program must agree to not apply for or otherwise be employed in a full-time, part-time, or temporary contracted position in Little Rock School District for a period of four (4) years. Participating teachers may be employed in Little Rock School District in a substitute position only. Unless a minimum of 100 eligible teachers apply for the Early Retirement Program by the application deadline, any agreement reached regarding the implementation of this program shall be considered null and void. This offer is extended to the first 250 eligible teachers who apply. All applications will be numbered as received in the Human Resources Department. Only those applications received on the date that the 250th application is received will be accepted after the 250th application. I am submitting this application for early retirement under the agreement reached between the Board of Directors and the Little Rock Classroom Teachers Association under the terms listed above. I understand that once this application is approved by the Board of Directors it is irrevocable. I agree to the condition that I will not apply for or otherwise be employed in a full-time, part-time, or temporary contracted position in the Little Rock School District for a period of four (4) years
however, I understand that I may be employed in a substitute position, only. (signature) (date) (current position)H RECOVER .1 APR 1 5 1994 ELarly Retirement Incentive Program for Administrators Office of D8segre?
atscrj Mu
. The purpose of the Early Retirement Incentive Program is to reduce recurring District expenditures for salaries without reducing individual salaries for employees or employee salary schedules. A. B. C. D, E. F. G. H. 1. The Early Retirement Incentive Program will be in effect for the 1993-94 school year only. Employees who are at step 16 or above on the salary schedule for their position are eligible to participate in the Early Retirement Incentive Program. Participating employees are not required to retire under the Arkansas Teacher Retirement System. Participating employees may be employed in another Arkansas School District. Employees must complete the application form for participation in the Early Retirement Incentive Program, indicate beneficiary(s), and submit to the Director of Human Resources by May 20, 1994. Applications received after May 20, 1994, will not be considered. Applications will not be rescinded after Board approval. Current salary (base salary) as used below includes salary paid from the salary schedule at the time of application not to exceed $55,000. "Current salary" as used below does not include any other compensation including stipends, overtime, or supplemental pay. Early Retirement Incentive Program compensation will be determined as follows: 1. 2. Eligible employees less than 56 years of age on the May 20th application deadline will be paid one hundred percent (100%) of current salary divided in five (5) annual equal installments, one (1) each January 15. Eligible employees 56 years of age on the May 20th application deadline will be paid ninety percent (90%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 3. Eligible employees 57 years of age on the May 20th application deadline will be paid eighty percent (80%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 4. Eligible employees 58 years of age on the May 20th application deadline will be paid seventy percent (70%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 5. Eligible employees 59 years of age on the May 20th application deadline will be paid sixty percent (60%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 6. Eligible employees 60 years of age on the May 20th application deadline will be paid fifty percent (50%) of current salary divided in five (5) annual equal installments, one (1) each 9 mJanuary 15. 7. 8. Eligible employees 61 years of age on the May 20th application deadline will be paid forty percent (40%) of current salary divided in four (4) annual equal installments, one (1) each January 15. Eligible employees 62 years of age on the May 20th application deadline will be paid thirty percent (30%) of current salary divided in three (3) annual equal installments, one (1) each January 15. 9. 10. 11. Eligible employees 63 years of age on the May 20th application deadline will be paid twenty percent (20%) of current salary in two (2) annual equal installments, one each January 15. Eligible employees 64 years of age on the May 20th application deadline will be paid ten percent (10%) of current salary in one (1) installment on January 15, 1995. Employees 65 years of age or older on the May 20th application deadline are not eligible to participate in this program. K. L. Employees will begin receiving installments on January 15, 1995. Participating employees in the Early Retirement Incentive Program must agree to not apply for or otherwise be employed in a full-time, part-time, or temporary contracted position in Little Rock School District for a period of four (4) years. M. Participating employees may be employed in Little Rock School District in a daily rate substitute position only. N. Money saved as a result of the implementation of the Early Retirement Incentive Program will be used for the purpose of reducing expenditures to assist in balancing the budget for each year. Savings from this program will be exempt from all laws pertaining to teacher salaries and funds designated for teacher salaries only during the five (5) years of the payout of this incentive. If the exemptions from all laws pertaining to teacher salaries and funds designated for salaries are not approved by the appropriate legal authorities, any agreement reached between the Board and the Association shall be considered null and void. Signature: Date: Social Security #: Location: Position/Job Title:ar :z3 h> Gt Little Rock School District APR 1 5 1994 Early Retirement Incentive Program for Teacl)$|:s Application 'UiLt? o! L/ssegn U' The purpose of the Early Retirement Incentive Program is to reduce recurring District expenditures for salaries without reducing Individual salaries for teachers or teacher salary schedules. A. The Early Retirement Incentive Program will be in effect for the 1993-94 school year only. B. Teachers who are at Step 16 or above on the Teacher Salary Schedule are eligible for the Early Retirement Incentive Program. C. Participating teachers are not required to retire under the Arkansas Teacher Retirement System. D. Participating teachers are not required to retire from the teaching profession. E. Participating teachers may be employed in another Arkansas School District. F. Teachers must complete the application form for participation in the Early Retirement Incentive Program, indicate beneficiary(s), and submit to the Director of Human Resources by May 20, 1994. G. Applications received after May 20, 1994, will not be considered. H. Applications will not be rescinded after Board approval. I. "Current salary" as used below includes salary paid from the teacher salary schedule at the time of application. "Current salary" as used below does not include any other compensation including stipends paid under Appendix B (Supplementary Pay Schedule). J. Early Retirement Incentive Program compensation will be determined as follows: 1. Eligible teachers less than 56 years of age on the May 20th application deadline will be paid one hundred percent (100%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 2. Eligible teachers 56 years of age on the May 20th application deadline will be paid ninety percent (90%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 3. Eligible teachers 57 years of age on the May 20th application deadline will be paid eighty percent (80%) of cunent salary divided in five (5) annual equal installments, one (1) each January 15. 4. Eligible teachers 58 years of age on the May 20th application deadline will be paid seventy percent (70%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 5. Eligible teachers 59 years of age on the May 20th application deadline wiU be paid sixty percent (60%) of current salary divided in five (5) annual equal installments, one (1) each January 15.K. L. M. N. O. 6. 7. 8. 9. 10. 11. Eligible teachers 60 years of age on the May 20th application deadline will be paid fifty percent (50%) of current salary divided in five (5) annual equal installments, one (1) each January 15. Eligible teachers 61 years of age on the May 20th application deadline will be paid forty percent (40%) of current salary divided in four (4) annual equal installments, one (1) each January 15. Eligible teachers 62 years of age on the May 20th application deadline will be paid thirty percent (30%) of current salary divided in three (3) annual equal installments, one (1) each January 15. Eligible teachers 63 years of age on the May 20th application deadline will be paid twenty percent (20%) of current salary divided in two (2) annual equal installments, one (1) each January 15. Eligible teachers 64 years of age on the May 20th application deadline will be paid ten percent (10%) of current salary in one (1) installment on January 15. Teachers 65 years of age or older on the May 20th application deadline are not eligible to participate in this program. Teachers will begin receiving installments on January 15, 1995. Participating teachers in the Early Retirement Incentive Program must agree to not apply for or otherwise be employed in a full-time, part-time, or temporary contracted position in Little Rock School District for a period of four (4) years. Participating teachers may be employed in Little Rock School District in a substitute position only. Unless a minimum of 100 eligible teachers apply for the Early Retirement Program by the application deadline, any agreement reached regarding the implementation of this program shall be considered null and void. This offer is extended to the first 250 eligible teachers who apply. All applications will be numbered as received in the Human Resources Department. Only those applications received on the date that the 250th application is received will be accepted after the 250th application. I am submitting this application for early retirement under the agreement reached between the Board of Directors and the Little Rock Classroom Teachers Association under the terms listed above. I understand that once this application is approved by the Board of Directors it is irrevocable. I agree to the condition that I will not apply for or otherwise be employed in a full-time, part-time, or temporary contracted position in the Little Rock School District for a period of four (4) years
however, I understand that I may be employed in a substitute position, only. (signature) (date) (current position)<Ci iV kPR 1 5 1991 Early Retirement Incentive Program for Administrators Office of Desegrsgafcor* i'i'l V ......4 The purpose of the Early Retirement Incentive Program is to reduce recurring District expenditures for salaries without reducing individual salaries for employees or employee salary schedules. A. B. C. D. E. F. G. H. 1. The Early Retirement Incentive Program wiU be in effect for the 1993-94 school year only. Employees who are at step 16 or above on the salary schedule for their position are eligible to participate in the Early Retirement Incentive Program. Participating employees are not required to retire under the Arkansas Teacher Retirement System. Participating employees may be employed in another Arkansas School District. Employees must complete the application form for participation in the Early Retirement Incentive Program, indicate beneficiary(s), and submit to the Director of Human Resources by May 20, 1994. Applications received after May 20, 1994, will not be considered. Applications will not be rescinded after Board approval. Current salary (base salary) as used below includes salary paid from the salary schedule at the time of application not to exceed $55,000. "Current salary as used below does not include any other compensation including stipends, overtime, or supplemental pay. Early Retirement Incentive Program compensation will be determined as follows: 1. Eligible employees less than 56 years of age on the May 20th application deadline will be paid one hundred percent (100%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 2. Eligible employees 56 years of age on the May 20th application deadline will be paid ninety percent (90%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 3. Eligible employees 57 years of age on the May 20th application deadline will be paid eighty percent (80%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 4. Eligible employees 58 years of age on the May 20th application deadline will be paid seventy percent (70%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 5. Eligible employees 59 years of age on the May 20th application deadline will be paid sixty percent (60%) of current salary divided in five (5) annual equal installments, one (1) each January 15. 6. Eligible employees 60 years of age on the May 20th application deadline will be paid fifty percent (50%) of cunent salary divided in five (5) annual equal installments, one (1) eachJanuary 15. 7. Eligible employees 61 years of age on the May 20th application deadline will be paid forty percent (40%) of current salary divided in four (4) annual equal installments, one (1) each January 15. 8. Eligible employees 62 years of age on the May 20th application deadline will be paid thirty percent (30%) of current salary divided in three (3) annual equal installments, one (1) each January 15. 9. 10. 11. Eligible employees 63 years of age on the May 20th application deadline will be paid twenty percent (20%) of current salary in two (2) annual equal installments, one each January 15. Eligible employees 64 years of age on the May 20th application deadline will be paid ten percent (10%) of current salary in one (1) installment on January 15, 1995. Employees 65 years of age or older on the May 20th application deadline are not eligible to participate in this program. K. L. Employees will begin receiving installments on January 15, 1995. Participating employees in the Early Retirement Incentive Program must agree to not apply for or otherwise be employed in a full-time, part-time, or temporary contracted position in Little Rock School District for a period of four (4) years. M. Participating employees may be employed in Little Rock School District in a daily rate substitute position only. N. Money saved as a result of the implementation of the Early Retirement Incentive Program will be used for the purpose of reducing expenditures to assist in balancing the budget for each year. Savings from this program will be exempt from all laws pertaining to teacher salaries and funds designated for teacher salaries only during the five (5) years of the payout of this incentive. K the exemptions from all laws pertaining to teacher salaries and funds designated for salaries are not approved by the appropriate legal authorities, any agreement reached between the Board and the Association shall be considered null and void. Signature: Date: Social Security #: Location: Position/Job Title:RECEIVER IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION APR 2 8 1994 Office of Desegregation Mofiiiv,..ig LITTLE ROCK SCHOOL DISTRICT PLAINTIFF VS. No. LR-C-82-866 PULASKI COUNTY SPECIAL SCHOOL DISTRICT NO. 1, ET AL DEFENDANTS MRS. LORENE JOSHUA, ET AL INTERVENORS KATHERINE KNIGHT, ET AL INTERVENORS LRSD^S MOTION FOR EARLY RETIREMENT INCENTIVE PROGRAM EXEMPTION AND RACIAL IMPACT APPROVAL The Little Rock School District ("LRSD or "District"), for its Motion for Early Retirement Incentive Program Exemption and Racial Impact Approval, states: 1. By Order dated July 14, 1993, this Court entered an Order following its review and hearing of testimony concerning the proposed Early Retirement Incentive Program by the Pulaski County Special School District ("PCSSD"). The Order found that the program would not adversely impact the racial balance of the PCSSD's staff. Further, the Order found that the savings to be realized by the PCSSD from its program were exempt from the new revenue requirements of 1983 (Ex. Sess.) Ark. Acts 34
Ark. Code Ann. 6-20-301, et seq.("Act 34"). 2. In developing its budget for the 1994-95 school year, the LRSD has determined that it too should offer an early retirement incentive program for its teachers and certain other employee groups. Similar to the PCSSD, the LRSD considers it essential that LRSD's Motion For Early Retirement Incentive Exemption and Racial Impact Approval April 28, 1994 Page 2 any revenues realized from such a program be exempt from the requirements of Act 34. By doing so, the funds realized by the District could be used for other purposes, such as reducing or eliminating the projected budget deficit. 3. Attached hereto as Exhibit 1 is a true and accurate copy of the "Fast Track" evaluation of the Early Retirement Incentive Program. Attached hereto as Exhibit 2 is a true and accurate copy of an analysis of the impact of the early retirement program on the racial balance of the District. Attached hereto as Exhibit 3 is a true and accurate copy of a report indicating the number of teachers eligible for the program by subject area as well as the number and percent eligible by race and gender. These exhibits are incorporated herein by reference as if set out word-for-word. 4. As reflected by the racial balance impact analysis, the Early Retirement Incentive Program is not projected to have a disproportionate or negative impact on the racial balance of the LRSD. In fact, based upon those teachers taking advantage of the opportunity as of April 26, 1994, the District may be in a position to increase the percentage of black teachers as a result of the incentive being taken in significant numbers by non-black teachers. thereby creating opportunities for new black teachers to enter into the District.LRSD's Motion For Early Retirement Incentive Exemption and Racial Impact Approval April 28, 1994 Page 3 5. Based on the foregoing, it is submitted that an order should be entered by this Court declaring that the Early Retirement Incentive Program of the LRSD will not have a negative impact on the racial balance of the District's staff and that any funds realized from the program are exempt from the requirements of Act 34. WHEREFORE, the Little Rock School District moves the Court for the entry of an order declaring that the District's Early Retirement Incentive Program does not have a negative impact on the District's racial balance and that the funds realized therefrom are exempt from the requirements of Act 34
the District should also be awarded any and all other legal and proper relief to which it may be entitled. FRIDAY, ELDREDGE & CLARK ATTORNEYS AT LAW 2000 First Commercial Building 400 West Capitol Little Rock, Arkansas 72201-3493 (501) 376-2011 ATTORNEYS FOR PLAINTIFF LITTLE ROCK SCHOOL DISTRICT erry L. Malone Bar No. I. D. 85096 CERTIFICATE OF SERVICE I, Jerry L. Malone, do hereby certify that a copy of the foregoing LRSp's Motion For Early Retirement Incentive Program Exemption and Racial Balance Approval has been mailed by First Class Mail, postage pre-paid on April 28, 1994, upon the following, except as otherwise indicated: Mr. John W. Walker John Walker, P.A. 1723 Broadway Little Rock, AR 72206 Mr. Sam Jones Wright, Lindsey & Jennings 2200 Worthen Bank Building 200 West Capitol Little Rock, AR 72201 Mr. Steve Jones Jack, Lyon & Jones, P.A. 3400 Capitol Towers Capitol & Broadway Streets Little Rock, AR 72201 Mr. Richard Roachell First Federal Plaza 401 West Capitol Avenue, Suite Little Rock, AR 504 72201 Mrs. Ann Brown (Hand-delivered pursuant to the order of the Court) Heritage West Building, Suite 520 201 East Markham Street Little Rock, AR 72201 Jerry L. Malone EXHIBIT 1 Little Rock School District Human Resources Department Early Retirement Program Description: Early Retirement incentives are generally offered for one or more of four basic reasons. First, it is a method to save money on recurring personnel costs by replacing higher paid staff with lower paid staff. Second, it is a method to reduce staff without resorting to a layoff. Third, it is a method to reorganize or restructure staff alignment and responsibilities. Fourth, it is a method of providing an employee benefit. Before the District enters into an agreement with the union on an early retirement program, it should determine what the purpose would be as it applies to the LRSD. It is apparent to everyone who has even peripheral knowledge of the District budget that cuts must be made in recurring expenses. By far the greatest recurring expense is personnel costs. One of the reasons that the District would decide to implement an early retirement incentive must be to reduce recurring payroll obligations. Since the District is also experiencing declining enrollment, the second reason should also be considered. It allows a method to reduce staff to match the shrinking enrollment without the trauma of a layoff while also eliminating the highest paid employees in each affected group. The third reason should be left open although at the time of the preparation of this "fast track" evaluation, there is no plan to have a major reorganization of the District. The fourth reason should be considered in two ways. Would the program be designed primarily as an employee benefit, or would it primarily be for cost savings? If it is designed as an employee benefit, it should be negotiated as a retirement bonus and continue indefinitely. If it is a cost savings measure, it should be a one time opportunity for employees to receive an incentive to separate service with the District. A window of opportunity should be opened to encourage retirement and then the window should be closed. Otherwise, the program becomes a bonus and is simply an additional expense. At this time one would have to conclude that the first two would be the principal benefit to the District and the other two reasons are possible by-products. 1Little Rock School District Human Resources Department The Pulaski County Special School District (PCSSD) implemented an early retirement incentive program last year. It would appear that their primary purpose would be the same as ours. With their program and its regulations and procedures as a guide, we can anticipate some possible results if we apply their program to current staff. Attached as "Appendix B" is a copy of PCSSDs program. our Goals: The goal of the program described above as it applies to the LRSD would be to reduce recurring personnel costs while avoiding the trauma of a reduction in force. Evaluation Criteria: Because of the amount of the projected budget deficit for the 1994-95 school year, probably no one program or budget reduction will eliminate the entire deficit. An analysis of alternatives to an early retirement incentive program need not be considered to replace it. Alternatives must be considered to complement the possible results of it. Those alternatives are being explored through other "fast track" evaluations and the program budgeting process. A comparison of the number of teachers in the PCSSD who took advantage of the incentive to the number of teachers who meet the defined criteria who normally leave the PCSSD each year will be made. Although it would be a more accurate comparison to compare percentages of teachers rather than numbers of teachers, that data is not available. Therefore, a determination of the number of teachers who would have fallen in this category last year in the LRSD will be projected for the current school using the PCSSD experience as a guide. This comparison and projection will only have value if the LRSD uses exactly the same window of opportunity as the PCSSD. Evaluation Results: Since the salary schedules of the LRSD and PCSSD are not identical, the same criteria cannot be applied exactly. The eligibility requirement has been adjusted slightly. Instead of starting the eligibility at Step 13 as in PCSSD, Step 16 has been used for the LRSD. For a teacher to be eligible, he/she must be at Step 16 or above. 2Little Rock School District Human Resources Department The chart below illustrates the portion of the salary schedule which would be covered by the early retirement incentive. The salary shown below is for a 9.25 month teacher
teachers with extended contracts would have to be prorated to determine the actual salaries for all covered teachers. LRSD 1993-94 16 17 18 19 BA $32,118 BA + 12 $33,162 BA + 24 $34,206 $35,009 MA/BA + 36 $35,270 $36,073 $36,876 MA + 15 $36,354 $37,157 $37,960 $38,763 MA + 30 $37,458 $38,261 $39,064 $39,867 20 $40,670 The chart below shows the number of teachers on each step of the schedule defined above and the actual dollars with FICA attached to each step. There are 630 teachers on the chart who would be eligible. 16 BA BA+12 BA-I-24 MA/BA-l-36 MA+15 MA-l-30 30 $1,168,761.54 37 $1,411,785.06 6 $266,387.45 20 $798,954.27 10 $470,533.51 21 $899,764.19 17 40 $1,594,582.60 19 $776,586.41 14 $591,120.61 11 $525,497.17 18 126 $5,350,045.95 14 $600,668.05 14 $9,312,558.79 19 66 $2,951,248.46 14 $633,463.47 20 188 $8,771,417.14 3Little Rock School District Human Resources Department In PCSSD, only 38 eligible teachers took advantage of the incentive plan. The PCSSD plan calls for a two year window of opportunity which probably accounts for the small number of teachers who took advantage of the incentive in the first year. Officials from the PCSSD indicate that normally 12 to 15 teachers from this group would leave each year. The PCSSD is anticipating that at least 100 teachers will apply for the incentive this year before the window closes. If the LRSD uses a more narrow window of opportunity (one year), it is impossible at this stage to project how many teachers at each step will elect to participate. Before projecting the possible savings, the incentive which would be paid to the employees must be calculated. To do this the salaries must be applied to the age chart shown below. The percentages in the chart are the same as used in the PCSSD program. AGE SALARIES PERCENT LIABILITY LESS THAN 56 56 57 58 59 60 61 62 63 64 65 $21,424,153.83 $ 1,165,916.63 $ 994,238.20 $ 672,218.13 $ 691,237.51 $ 579,940.43 $ 365,476.61 $ 349,527.66 $ 353,417.90 $ 264,156.59 NOT ELIGIBLE 100 90 80 70 60 50 40 30 20 10 $21,424,153.83 $ 1,049,324.96 $ 795,390.56 $ 470,552.69 $ 414,742.50 $ 289,970.21 $ 146,190.64 $ 104,858.29 $ 70,683.58 $ 26,415.66 TOTAL 6,860,283.49 $24,792,282.92 4Little Rock School District Human Resources Department The total liability for the payout to the employees would be $24,792,282.92 if every eligible teacher participated. Under the PCSSD plan the total liability for the participating teachers would not be paid in the first year after their separation from their district. The amount due would be paid in installments of 20% for five years. If every eligible teacher participates, the installments would be approximately five (5) million dollars per year. The LRSD currently gives teachers new to the District up to seven (7) years credit for previous experience
therefore, step eight (8) would be the highest step possible for a new teacher who would be hired to replace a participating teacher. With an MA+30 hours and step eight (8) placement, the maximum salary for a replacement teacher would be $33,408 with FICA. If all replacement teachers were hired at the maximum placement, the total salary would be $21,047,040. The average salary for all teachers hired by the LRSD for the 1993-94 school year was $24,403 with FICA. Using this as the average replacement salary, the total salary for replacement teachers would be $15,373,890. The current total salary of the eligible teachers is $26,860,090. Using the average replacement salary, the District would save $11,486,200 in salary and would have a net savings of approximately $6.5 million dollars per year. Using the worst case scenario with 100 percent participation, the net savings for the District would be approximately $.8 million. If the same eligibility criteria were applied to the LRSD for last year, there were 37 teachers who left the District who would have been eligible by salary placement
however, five of these teachers were older than the age guidelines. If the assumption were drawn that a like number of teachers would leave the District whether or not there is an incentive program, at least 32 eligible teachers would have to leave before the incentive has any impact on the number leaving. Using the 1993-94 salary schedule, the salaries for these teachers would have been $1,555,227. The savings would have to be large enough to compensate for those teachers who would have left anyway to avoid the District losing money from the incentive. If applied to last year, the District would have had to pay $731,023 (^46,205 for each of the five years) for the incentive to those teachers who left the District with no early retirement incentive. While it would be helpful to apply the criteria to more years than just last year
as a result of the computer conversion the information is not available. Unless the District saves more than $731,000, it is questionable whether the program is a bonus or an incentive. Proportionally applying the data presented above, there would have to be seventy-one (71) eligible teachers participate before there are any savings above the savings normally achieved without the early retirement incentive. 5Little Rock School District Human Resources Department Obstacles to Goal Attainment: The early retirement incentive program would have to be negotiated since it would be a policy directly affecting teachers. Provided the incentive is negotiated, the primary obstacle to having a successful program with the resulting savings would be that the incentive did not entice employees to separate service than would have left without the program. Recommendation: A survey of eligible teachers should be conducted to determine the level of interest without making any commitments that the program would be enacted. If fewer than 85 teachers express an interest in the program for this year, the Board should not move to open negotiations to implement the program. If there is sufficient interest, an early retirement incentive program modeled after the program in place with the PCSSD should be proposed and negotiated with the teachers union. The window of opportunity should be limited to the current school year to prevent participation by only those who would have left anyway. The Board of Directors should reserve the right to reopen the window of opportunity next year after experiencing the program this year. There should be no guarantee that the program will ever be offered again to maximize the participation this year. Objective: The purpose of the recommendation is to reduce recurring expenses by reducing payroll while avoiding if possible a RIF through traditional means where the least senior and lowest paid teachers are laid off. Impact Analysis: Other than the objective presented above, the program could impact the racial composition of the teaching staff. The District should also use this window of opportunity to recruit black applicants into positions which might not otherwise become vacant. It is possible that a disproportionate number of black teachers could take advantage of the incentive. If this happens, the District must guard against lowering the percentage of black teachers. 6Little Rock School District Human Resources Department Desegregation Plan: There is no apparent negative impact with the possible exception of the impact presented above. This should not be a problem if the racial composition of the participants is closely monitored. This should be viewed as an opportunity rather than a problem. Court Orders: There is no known negative impact. Political Factors: There are no known political factors which would impact this program. Timing: The program would have to be negotiated in time to encourage participation this spring before a RIF would have to be implemented. A target date of March 15, 1994, should be set for the completion of negotiations and ratification by both the Board and the union. The 1994-95 budget would be the first budget impacted. Resources Analysis: See Evaluation Results. Force Field Analysis: There should not be widespread or organized opposition to the plan. It should have Board support because it should reduce the deficit. It should have employee and union support because of the employee benefit (the incentive). The court should support the plan because of the positive budget ramifications and the possible positive impact on the racial balance of the staff. 7Little Rock School District Human Resources Department Implementation Plan: A joint survey from the District and the union should be submitted to the eligible teachers as soon as possible. It should be a joint survey to avoid any claims of bad faith in the bargaining process. If the results of the survey show an adequate level of interest the plan should be submitted to the Board as a recommendation to open negotiations with the union. Negotiations should begin as soon as possible after the Board and the union consent to open negotiations. It should be negotiated as a special interest of concern to both parties and not as part of the package for negotiations for successor agreements. Negotiations should begin by February 1, 1994, and conclude as soon as possible thereafter. Negotiations should be completed and the program ratified by both parties no later than March 15, 1994. After successful negotiations, all eligible parties should be sent information concerning the incentive and encouraged to participate. By May 20, 1994, the application for the incentive should be received by the District for processing. This information should be presented to the Manager of Support Services for inclusion in the budgeting process. 8APPENDIX A % TEACHERS CURRENT SALARIES 5 YEAR LIABILITY PAYOUT EACH YEAR PROJECTED REPLACEMENT SALARIES 20% PAYOUT REPLACEMENT 630 100% $26,860,090 $24,792,282 $ 4,958,456 $ 15,373,890 $ 20,332,346 32 5% $ 1,364,320 $ 1,259,288 $ 251,858 780,896 1,032,754 63 10% $ 2,686,009 $ 2,479,227 $ 495,845 1,537,389 2,033,234 71 11J% $ 3,027,089 $ 2,794,050 $ 558,810 $ 1,732,613 $ 2,291,423 95 15% $ 4,029,014 $ 3,738,516 $ 747,703 2,318,285 3,065,988 100 15.87% $ 4,263,504 $ 3,935,280 $ 787,056 2,440,300 3,227,356 SAVINGS $6,527,744 $ 331,566 $ 652,775 $ 735,666 $ 963,026 $1,036,148 $ $ $ $ + $ $ $ $ KEY: TEACHERS: NUMBER PARTICIPATING %: PERCENTAGE OF TEACHERS ELIGIBLE TO PARTICIPATE (630) CURRENT SALARIES: BASED ON PERCENTAGE OF SALARIES OF TOTAL ELIGIBLE GROUP 5 YEAR LIABILITY: PROPORTIONATE REDUCTION FROM CURRENT SALARIES PAYOUT EACH YEAR: 20% LIABILITY FOR EACH OF THE 5 YEARS PROJECTED REPLACEMENT SALARIES: NUMBER PARTICIPATING TIMES CURRENT AVERAGE NEW HIRE SALARY SAVINGS: CURRENT SALARIES MINUS 20% PAYOUT AND REPLACEMENT SALARIESLittle Rock School District Human Resources Department Appendix B PULASKI COUNTY SPECIAL SCHOOL DISTRICT Early Retirement Incentive Program The purpose of the Early Retirement Incentive Program is to reduce District expenditures in order to build a reserve which will offset the cessation of State Desegregation Settlement Funds in 1995-96 and 1996-97. A. B. C. Eligibility for the Early Retirement Incentive Program will remain in effect for the 1992-93 and 1993-94 school years unless renegotiated. Teachers who are at Step 13 or above on the Teacher Salary Schedule are eligible for the Early Retirement Incentive Program. Participating teachers are not required to retire under the Arkansas Teacher Retirement System. D. E. F. G. Participating teachers are not required to retire from the teaching profession. Participating teachers may be employed in another Arkansas School District. Teachers must complete the application form for participation in the Early Retirement Incentive Program, indicate beneficiary(s), and submit to the Assistant Superintendent for Personnel by May 20 each year. Applications received after May 20, 1994, will not be considered unless this program is renegotiated. H. 1. Applications will not be rescinded after Board approval. "Current salary" as used below includes salary paid from the teacher salary schedule and professional growth contract at the time of application, "Current salary" as used below does not include other compensation. J. Early Retirement Incentive Program compensation will be determined as follows: 1. Eligible teachers less than 56 years of age on or before the May 20 application deadline will be paid one hundred percent (100%) of current salary divided in five (5) annual equal installments, one (1) each January 15.Little Rock School District Human Resources Department Appendix B 2. Eligible teachers 56 years of age on or before May 20 application deadline will be paid ninety percent (90%) of current salary divided in five (5) annual equal installments, one (1) each Januaiy 15. 3. Eligible teachers 57 years of age on or before the May 20 application deadline will be paid eighty percent (80%) of current salary divided in four (4) annual equal installments, one (1) each January 15. 4. Eligible teachers 58 years of age on or before the May 20 application deadline will be paid seventy percent (70%) of current salary divided in four (4) annual equal installments, one (1) each January 15. 5. Eligible teachers 59 years of age on or before the May 20, application deadline will be paid sixty percent (60%) of current salary divided in three (3) annual equal installments, one (1) each January 15. 6. Eligible teachers 60 years of age on or before the May 20, application deadline will be paid fifty percent (50%) of current salary divided in three (3) annual equal installments, one (1) each January 15. 7. Eligible teachers 61 years of age on or before the May 20 application deadline will be paid forty percent (40%) of current salary divided in two (2) annual equal installments, one (1) each January 15. 8. Eligible teachers 62 years of age on or before the May 20 application deadline will be paid thirty percent (30%) of current salary divided in tow (2) annual equal installments, one (1) each January 15. 9. Eligible teachers 63 years of age on or before the May 20 application deadline will be paid twenty percent (20%) of current salary in one (1) installment on January 15. 10. Eligible teachers 64 years of age on or before the May 20 application deadline will be paid ten percent (10%) of current salary in one (1) installment on January 15. 11. Teachers 65 years of age or older on or before the May 20 application deadline are not eligible to participate in this program. K. Teachers may not receive installments until the January following Board approval forAppendix B L. M. N. O. Little Rock School District Human Resources Department participation in the Early Retirement Incentive Program. Participating teachers in the Early Retirement Incentive Program must agree to not apply for or otherwise be employed in a full-time, part-time, or temporary contracted position in Pulaski County Special School District. Participating teachers may be employed in Pulaski County Special School District in a substitute position only. Savings Calculation Method: 1. 2. 3. Teacher replacement costs will be computed by calculating the average teacher salary including FICA costs for incoming teachers employed by September 1 of that year times the number of participants in the Early Retirement Incentive Program for that year. Increases in the teacher salary schedule in subsequent years will be included in the calculation of participant costs and replacement costs. Money saved will be computed as follows: (Participant Salaries -I- FICA costs) - (Replacement Costs + FICA 4- Installment Payments + FICA). Money saved as a result of the implementation of the Early Retirement Incentive Program will be credited to a Compensatory Trust Fund maintained by the District for the purpose of reducing expenditures and thus balance the budget when the State Settlement Monies cease. Monies saved, including interest, which accrue above the annual amount needed to balance the budget and thus promote the continued implementation of the court approved Desegregation Plan will be placed in the Districts Contingency Fund. Resolved through impasse hearing by the Board on April 29, 1993.EXHIBIT 2 The Impact of Early Retirement on Racial Balance The early retirement incentive which has been negotiated with the Rock Classroom Teachers Association for teachers should have no negative impact on the racial composition of the teaching staff. The current teaching staff is approximately 33.6 percent black while the overall pool of teachers eligible for the incentive is 37.4 percent black. Because these percentages are relatively close to each other, this balance should allow teachers of both races equitable opportunities to apply for the early retirement incentive. the early It is impossible to precisely predict how many teachers of each race will take advantage of this opportunity
April 26, 1994, sixty-five (65) teachers had applied for the incentive. of this number 16.9 nercent nr pvon n-P <-ho sixty-five (65) however, through Of percent or eleven (11) of the teachers are black. The impact The racial composition of the teaching staff and the possible impact of the incentive on that balance has been considered from the start of the planning process for the incentive. The impact analysis of the fast track evaluation completed for the early retirement incentive states, "The District should use this window of opportunity to recruit black applicants into positions which might not otherwise become vacant. It is possible that a disproportionate number of black teachers could take advantage of the incentive. If this happens, the District must guard against lowering the percentage of black teachers." It 1 In At this time there does not appear to be any negative impact, fact there would appear to be an opportunity to increase the percentage of black teachers as a result of the incentive. Nonetheless, the impact will be continually monitored to be certain that the incentive will not cause a negative impact. 1. See page 6,"Impact Analysis", of the attached fast track evaluation.TO
FROM
DATE
SUBJECT
EXHIBIT 3 LITTLE ROCK SCHOOL DISTRICT 810 WEST MARKHAM STREET LITTLE ROCK, ARKANSAS Superintendent's Cabinet 72201 Brady Gadberry, Director of Human Resources January 31, 1994 Early Retirement Incentive The table below shows the subjects taught by the iue caoxe Deiow snows the subjects taught by the 630 teachers presented in the fast track evaluation on the early retirement incentive. These numbers were derived fmm a down load . , These miners derived from down of the eligible teachers using state department codes to classify the subject. Many of the teachers may teach additional STibjects which are not represented here to keep from counting teacher more than once
therefore, the information presented in teachers by subj ect. a the should be used only to give an indication approximately how many teachers could be eligible in each area. chart to an of SUBJECT NUMBER OF TEACHERS ELEMENTARY KINDERGARTEN GIFTED & TALENTED READING MATH (ELEM & CHAP I) LIBRARIAN COUNSELORS SPECIAL ED ENGLISH MATH SCIENCE SOCIAL STUDIES HEALTH & PE VOCATIONAL BUSINESS 105 37 19 36 31 26 39 56 39 36 28 32 21 20HOME EC 8 CAREER ORIENTATION 6 ICT 4 CCE 9 OTHER VOCATIONAL ART INSTRUMENTAL MUSIC MUSIC FRENCH GERMAN LATIN SPANISH SPEECH COMMUNICATION ADULT ED JOURNALISM TOTAL TEACHERS 29 8 9 10 3 1 4 4 5 6 1 630 The race and gender of the eligible group is shown in the followina table. BF BM WF WM NUMBER 194 42 324 70 PERCENT 30.8 6.6 51.4 11.1RECEIVED IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION APR 2 8 1994/7/ Office of Dessgregaiion Monuuiiiig LITTLE ROCK SCHOOL DISTRICT PLAINTIFF VS. No. LR-C-82-866 PULASKI COUNTY SPECIAL SCHOOL DISTRICT NO. 1, ET AL DEFENDANTS MRS. LORENE JOSHUA, ET AL INTERVENORS KATHERINE KNIGHT, ET AL INTERVENORS MEMORANDUM BRIEF IN SUPPORT OF LRSD^8 MOTION FOR EARLY RETIREMENT INCENTIVE PROGRAM EXEMPTION AND RACIAL IMPACT APPROVAL The Little Rock School District ("LRSD" or "District"), for its Memorandum Brief In Support Of LRSD's Motion For Early Retirement Incentive Program Exemption And Racial Impact Approval, states: The District, pursuant to its budgeting process, has projected a deficit for its 1994-95 budget unless deficit reduction measures are taken. In accordance with its planning and budgeting process. the District conducted a fast-track evaluation of the possibility of offering an early retirement incentive program. Based upon that evaluation, the District determined that such an incentive program would be beneficial to its budgetary efforts. Accordingly, it is in the process of determining whether sufficient employee interest exists to warrant the implementation.Memorandum Brief April 28, 1994 Page 2 As this Court is aware, the Pulaski County Special School District ("PCSSD) has implemented such a program. In fact, an Order was issued by this Court on July 14, 1993. That Order determined that the PCSSD program would not have a negative impact on the racial balance of the District's staff and that the funds generated from such a program would be exempt from the reguirements of Act 34 under Arkansas State law. Based upon the exhibits supplied with the motion by the LRSD and the prior determination regarding the PCSSD program. it is submitted that the Early Retirement Incentive Program being offered by the LRSD should be found free of negative racial impact on the District's staff and any funds generated from the program should be exempt from the reguirements of Act 34. Respectfully Submitted. FRIDAY, ELDREDGE & CLARK ATTORNEYS AT LAW 2000 First Commercial Building 400 West Capitol Little Rock, Arkansas 72201-3493 (501) 376-2011 ATTORNEYS FOR PLAINTIFF LITTLE ROCK SCHOOL DISTRICT B' T. rrry L. Malone Bar No. I. D. 85096CERTIFICATE OF SERVICE I, Jerry L. Malone, do hereby certify that a copy of the foregoing Memorandum Brief In Support Of LRSD's Motion For Early Retirement Incentive Program Exemption And Racial Balance Impact Approval has been mailed by First Class Mail, postage pre-paid on April 28, 1994, upon the following, except as otherwise indicated: Mr. John W. Walker John Walker, P.A. 1723 Broadway Little Rock, AR 72206 Mr. Sam Jones Wright, Lindsey & Jennings 2200 Worthen Bank Building 200 West Capitol Little Rock, AR 72201 Mr. Steve Jones Jack, Lyon & Jones, P.A. 3400 Capitol Towers Capitol & Broadway Streets Little Rock, AR 72201 Mr. Richard Roachell First Federal Plaza 401 West Capitol Avenue, Suite 504 Little Rock, AR 72201 Mrs. Ann Brown (Hand-delivered pursuant to the order of the Court) Heritage West Building, Suite 520 201 East Markham Street Little Rock, AR 72201 7/ Jerry L. Malone' 1 I Little Rock School District NEWS RELEASE May 10, 1994 For more information: Jeanette Wagner, 324-2020 SPECIAL BOARD MEETING SCHEDUTTJ) FoUowing e regularly scheduled Little Rock School District board agenda meeting on May 12, at 5:00 p.m., there will be a special board meeting to discuss early retirement incentives for personnel who were not eligible for programs approved earUer this year. Modifications for the previously implemented early retirement incentive programs, including the addition of a $2,500 bonus, will be discussed as well. The LRSD Board members will also meet with state legislators at 6:30 p .m. fftt'tt O'y TTT___i C- REC^"' MAR 2 1 1995 FILED U.S. district court EASTERN district ARKANSAS Office of Desegregation Monitoring IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS WESTERN DIVISION MAR 1 6 1995 JAMES W.^^COR^CK, CLERK OeP CLERK LITTLE ROCK SCHOOL DISTRICT PLAINTIFF V. No. LR-C-82-866 PULASKI COUNTY SPECIAL SCHOOL DISTRICT No. 1, ET AL DEFENDANTS MRS. LORENE JOSHUA, ET AL INTERVENORS KATHERINE KNIGHT, ET AL INTERVENORS ORDER Before the Court are three motions which the Court now addresses: (1) motion of the Pulaski County Special School District ("PCSSD") to amend the desegregation plan (doc.#2126)
(2) motion of the Little Rock School District ("LRSD") for early retirement incentive program exemption and racial impact approval (doc.#2172)
and (3) motion of the PCSSD to approve certain program analyses and to amend the PCSSD permanent intradistrict desegregation plan as necessary (doc.#2218). The Court will address each of these motions in turn. I. The PCSSD desegregation plan provides at page 82 that II [a]ny PCSSD student may apply to transfer to a magnet school from any PCSSD school in which the black percentage is between 28% and 49%
except that black PCSSD students may apply for such transfer if the racial composition of the sending school is 28% black or greater. II The PCSSD moves that its desegregation plan be amended by adding 2 3 8 2( language g_iving the PCSSD the discretion to deny the transfer of white PCSSD students to interdistrict magnet schools if. in the judgment of the PCSSD's Office of Desegregation, any such transfer would have an unacceptable impact upon the black/white ratio of the sending school. 1 There are no specific objections to this motion although the LRSD has filed a pleading voicing several concerns it has with the proposed amendment. The Court has carefully considered the matter and finds that the motion should be and hereby is denied. In the recent order granting the Magnet Review Committee's ("MRC") request for approval of the interdistrict magnet school budget for the 1994-95 school year, this Court noted that the PCSSD had not filled its allotted magnet seats, and that the LRSD had Instituted new magnet school assignment policies which resulted in seats remaining vacant. The Court admonished the LRSD that it must consult with the MRC prior to making decisions that impact the schools which the committee oversees. Giving the PCSSD discretion to deny the transfer of white PCSSD students to interdistrict magnet schools, however. would afford it privileges unavailable to the LRSD and the North Little Rock school District and would usurp the oversight role of the MRC. The proposed amendment would also impede the primary goal of filling the magnet seats to capacity. As noted in the recent order, empty seats at the magnet schools are costly and deprive 1 The proposed additional language is as follows: "However, if in the judgement of the PCSSDs Office of Desegregation any such transfer would have an unacceptable impact upon the black/white ratio of the sending school, then the PCSSD may deny such transfer." 2children of_the opportunity to enjoy the benefits of magnet school programs. The Court reiterates that the MRC and the three school districts whose students populate the magnet schools are responsible for conducting recruitment activities, and that it fully expects the MRC and the parties to engage in vigorous, sustained recruitment so that all magnet school seats are filled every academic year. II. The LRSD has before the Court a motion for early retirement incentive program exemption and racial impact approval. This matter was Included in the LRSD's 1994-95 budget, which the Court allowed to proceed by order dated August 22, 1994. Accordingly, this motion is moot. The Clerk is directed to remove this motion from the pending motions report. III. The PCSSD asks this Court to approve certain program analyses addressing various items of operation in the PCSSD and to amend the PCSSD permanent intradistrict desegregation plan as necessary. Specifically, the PCSSD seeks approval for program analyses regarding (1) the transfer of an assistant principal position from Jacksonville High School to Jacksonville Junior High South and Jacksonville Junior High North
(2) a proposal to emphasize team learning and teacher expectation and student achievement and deemphasize the program for effective teaching
(3) a proposal for 3t the elimir^tion of the assistant principal's position at Scott Elementary School
(4) a proposal for changes in summer school programs in the PCSSD
(5) a proposal to combine the positions of associate directors for elementary and secondary education into one position. that being the Director of Instructional Support Services
and (6) a proposal to change the position of Director of Music and Extra-Curricular Activities t Coordinator of Music and Extra-Curricular activities. These matters were included in the PCSSD's 1994-95 budget, which the Court allowed to proceed by order dated August 26, 1994. Accordingly, this motion is moot. The Clerk is directed to remove this motion from the pending motions report. IV. In sum. the Court denies the PCSSD's motion to amend the desegregation plan (doc.#2126), finds the LRSD's motion for early retirement incentive program exemption and racial impact approval to be moot (doc.#2172), and finds the PCSSD's motion to approve certain program analyses and to amend the PCSSD permanent intradistrict desegregation plan as necessary to be moot (doc.#2218). IT IS SO ORDERED this A- /day of March 1995. UNITED S'TATES DISTRICT/ 1 JUDGE OOCKBT fHffT 4 PROP >41 FRIDAY, MAY 6,1994 ERSD adds incentive to retire Out-early teachers to get $2,500 bonus .......... BY CYNTHIA HOWELL Democrat-QazeMe EdtKallon Writer ' Negotiators for the Little Rock School District and the Classroom Teachers Association decided to sweeten the pot i
IJhursday to entice veteran I teachers to consider early re- : l tirement. i
The two negotiating teams
reached a tentative agreement to add a $2,500 bonus to the re-
tirement benefits approved ear-
lief this year by the CTA and the
school board. The CTA mem-
bership and school board must adopt the bonus before it can
take effect.
The district's early retirement
plan will give up to a years > salary to employees with 16 or .1 more years of experience if they
anhounce their plans to retire
from the district by May 20.
For the one-time-only retire- : ment plan to take effect, at least
100 teachers must enroll. Par-
ticipation in the program is I capped at 250, though more than > 600 of the districts 1,400 teach-
ers are eligible. So far, 65 teach- ers have signed up for the early
retirement program. ' The program is one attempt .: to cut salary expenses for the
next school year. District offi-
|cials are trying to trim $7 million < in expenses to balance the bud- : get for next year and avoid an il- : legal deficit. .
Vacancies created by the ear- ly retirements will either not be ' filled or will be filled by the 80 teachers whose jobs are being eliminated at the end of this year also as a cost-cutting measure. Tile vacancies would be filled by Jl^Shhers who have less seniority IXnd earn less than the retirees, j: -Brady Gadberry and Frank jaartin, chief negotiators for the lliflslrict and CTA negotiating Cteams respectively, said the $?,500 bonus would be paid by ^ug. 2. -Despite being ineligible for Sariy other retirement incentive, ,31)e districts 28 teachers aged 65 ^r older would be eligible for the >$2,Soo bonus. The system has no ^iSoo bonus. The system Smahdatory retirement age. i
<Jadberry pointed out that the ^,'^2^600 would be more than Enough to cover a retiring iVeJ'chers yearly health insur- rSHC.e premiums.Arkansas Democrat a SATURDAY. MAY 21, 1994 Numbers dont add up for teacher retirement plan Democrat-Gazette Staff Eighty-nine Little Rock School District teachers 11 short of the 100 required signed up for the districts early retirement incentive program by the deadline Friday, leaving the programs fate uncertain. The Classroom Teachers Association is expected to ask for at least a weeks extension of the deadline to meet the minimum number or to ask that retiring administrators be included in the teacher count. As of Friday afternoon, 14 administrators had signed up for the early retirement incentive program. The school board could also decide to lower the minimum number of participants. Earlier this year, the board adopted the teacher retirement incentive program as a way to trim salary expenses for next year. District officials had estimated $750,000 in savings if 100 teachers retired and were replaced by less-experienced, lower-paid employees. , According to the terms of the program, teachers with 16 years of experience in the district were eligible to get all or a part of a years salary if they retired before age 65. The years salary would be paid over as many as five years. In addition, all retiring teachers, including those 65 and older, would be eligible for a $2,500 bonus to be paid Aug. 2.Copyright Little Rock Newspapers. Inc. I LRSD staff
Let teachers retire early BY CYNTHIA HOWELL ' Democrat-Gazette Education Writer '' Little Rock School District administrators will recom-
mend that the School Board proceed with a teacher early retirement incentive program although applications fell 12 short of the minimum requirement of 100. The staff also will recommend extending by one week the application deadline, which originally was last Friday, for teachers, administra- tors, clerical workers and nurses, said Brady Gadberry, district director of labor relations. Eighty-eight teachers applied for the early retirement incentive by the deadline
In addition, 17 administrators, 17 clerical workers and three nurses also signed up for early retirements. The School Board adopted the one-time early retirement program to trim costs. The district must cut more than $7 million in expenses for next year to avoid an illegal budget deficit. The early retirement program could be more financially successful than expected. Gadberry said retirement of the 88 teachers who signed up for the program by last week would save the district about $820,000 in salary costs. Earlier, district officials estimated retirement of 100 teachers would generate $750,000 in savings. The savings would be generated by replacing the retiring teachers with less experienced, lower-paid ones.
The projections do not include any savings that might be realized by the early retirements of the administrators, nurses and clerical work- | ers. Those savings have not been calculated. - To be eligible for the-eai^ ly retirement, a teacher had to have at least 16 years of experience in the district and be under age 65. Of ffie districts 1,400 teachers, 630 were eligible for the incentive, which is all or part of a year s salary to be paid out over up to five years. In addition, all retirees, including those 65 and older, will get a $2,500 bonus in August.AAansas Democrat (gazette SATURDAY, MAY 28, 1994 LRSD will lose 124 educators to early retirement incentive BY CYNTHIA HOWELL Democrat-Gazette Education Writer The Little Rock School District will lose some longtime and well-known educators at the end of this school year because of an early retirement incentive program. The program will save the district about $1 million in salary costs next year. Most who are leaving arent frequently mentioned in news reports, but they are well known in education circles and beyond because of their long tenure, job assignments and accomplishments. The district implemented the early retirement program to cut costs. The retirees, 124 in all, will be replaced with people with less experience at lower salaries. Among the 87 teachers who will retire this year is Mary Beth Greenway, an English teacher at Parkview High School who this year won a $25,000 award from the Milken Family foundations for outstanding teaching. She also was one of two teachers from Arkansas to be named candidates for the NASA teacher in space program in the late 1980s. Among others who are leaving is Louise Bloom, a teacher at Williams Magnet Elementary
Carol Barnhouse, a math teacher at J.A. Fair High
Bryant Cochran, a math teacher at Hall High and a former president of the Little Rock Classroom Teachers Association
Delores S. Ivey, a counselor at Central High
Arlin Jones, a band director at J.A. Fair High
Charles Lance, journalism teacher at Central High
Susan May, an English teacher at Pulaski Heights Junior High
Elizabeth Willingham, an English teacher at Hall High
and Crystal Wood, a kindergarten teacher at Badgett Elementary. The salaries for the teachers range from $31,138 to $48,083. Included among the retirees are at least 17 administrators. The administrators have until June 17 to apply for the early retirement program, which provides employees with $2,500 plus all or part of a years salary if they resign before age 65. The 17 include five principals, the director of the Metropolitan Vocational Technical Skills Center, the director of the Safety and Security Department, the desegregation facilitator and the reading and mathematics supervisors. The principals are Donna Davis at Gibbs Magnet Elementary, Mary Guinn at Carver Magnet Elementary, Richard Maple at Forest Heights Junior High, Clell Watts at Henderson Junior High and Al Niven at Fair High. Also retiring are Doyle Dil- lahunty at Metropolitan, Bill Barnhouse, who is the safety and security director, Arma Hart, the desegregation facilitator
Alice Stovall, the reading supervisor, and Judy Trowell, the math supervisor. The salaries for the administrators range from $32,163 to $65,676. In addition, three nurses and 17 clerical employees are taking early retirement, including Norma Rogers, the executive assistant to the superintendent, and Sue Pederson, the executive assistant to the associate superintendent for desegregation.
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