Early Teacher Retirements Offer Modest Savings

Every little bit helps. That seems to be the consensus of school and union officials about a financial agreement reached between the district and the teachers' union to cut costs. The Norwalk Board of Education voted unanimously last Thursday in favor of an early retirement plan for teachers that could save the district nearly $350,000 next year.

On Tuesday afternoon, 100 teachers met with Bruce Mellion, president of the Norwalk Federation of Teachers, at West Rocks Middle School Library and also voted unanimously on the deal. “Every dollar is helpful to this budget," says Mellion.

Craig Drezek, chief operating officer of the Norwalk schools, says early retirement incentive plans are common in dealing with budget shortfalls. “It doesn’t cure the budget gap, but at this point every little bit helps,” says Drezek.

By June, the Norwalk Board of Education has to cut $4.6 million to bring the budget down to $154.8 million — the amount that the city allotted to the Board of Education in early May.

“It’s something, but it's surely not enough to prevent layoffs and major cuts,” says Board of Education Chair Jack Chiaramonte. “The unions did not save the day, like they could have.” Chiaramonte has been asking the teachers union for a wage freeze, which would have saved the district nearly $2 million.

The savings from the agreement result from the difference between the salary and benefits of a senior teacher versus that of hiring a new teacher with less experience — about $100,000 versus $50,000. In addition, the district would not have to pay unemployment to these teachers, unlike teachers who are laid off. The district, which self funds its unemployment payments, must pay $29,000 to each laid-off teacher.

As part of the deal, Norwalk teachers will be offered an incentive of $15,000 to retire early. The incentive payment will be deferred until 2012 and paid over two years.

The $350,000 in savings is predicated on 10 teachers accepting the package. “Teachers will have to see where they are on their journey and look at their economic situation,” says Mellion. The deadline for teachers take the incentive package is June 10. After that, the district will know how much was saved as a result of this agreement.

So far this year, Mellion says 14 teachers are expected to retire. He expects the incentive plan will raise that number. Although Superintendent Susan Marks has proposed cutting 15 teacher positions, Mellion believes retirements, attrition and resignations will cover that number. "At the end, no teacher will lose a job," says Mellion.

The school board also accepted an offer by the custodians’ union to freeze their salaries for next year. The current contract, which was up for renegotiation, will be extended another year. Drezek estimates the custodians concessions will save the district $100,000.

The school board is also negotiating with the Norwalk Association of School Administrators, which represents principals and other administrators, but no terms have been agreed upon yet.