Post by doctorwho on Mar 10, 2010 5:08:18 GMT -6
This is exactly why I will not support ANY tax increase or additional referendums -- we have leaders in total denial as to what the budgetary issues are even when the facts as as plain as the nose on their face. The pension plans are unaffordable as outgoing monies outstrip incomng, and just ''printing' more money is not the answer- no one has it.
I love this- oh the state is broke but we only add a little to the deficit so it's not our fault...geez. You can't keep adding COST to a bankrupt system ...
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www.dailyherald.com/story/?id=364787&src=76
Naperville Unit District 203 officials are defending their decision to continue boosting retiring teachers' state-paid pensions even as they blast the state for not paying its bills.
School officials say the pension benefits cost the state and district a minimal amount of money and point the finger at legislators for letting the state budget deteriorate.
The District 203 school board on Monday approved a new three-year contract with the Naperville Unit Education Association that represents roughly 1,350 teachers.
The deal renews a provision giving teachers annual pay raises of up to 6 percent for as many as four years before retirement.
The provision was scheduled to expire June 30 unless both parties agreed to continue it - which they did.
While districts are allowed to give raises of more than 6 percent that count toward pensions, the state only pays for the four 6 percent increases. Districts are on the hook for anything above that amount.
Dave Weeks, the lone school board member to vote against the contract, criticized the pension benefit Monday in addition to other provisions of the pact.
"Our school district, along with ... other surrounding school districts, have spent the last few weeks bashing the state of Illinois for the deplorable economic situation they (state officials) have allowed themselves to get into and hence are way behind paying what they owe these districts. ... Now we're going to turn around and ask them to pay artificially high pensions," Weeks said. "Seems to be a conflict in that."
The state is battling a nearly $13 billion budget deficit and owes area school districts millions of dollars, including $4.3 million to District 203. Last month, District 203 Superintendent Mark Mitrovich criticized the state for not living up to its funding responsibilities.
Mitrovich on Monday compared the pension situation to state legislators taking out a mortgage and then not making payments. He said it is the legislators' fault, not the mortgage's fault, and school districts shouldn't be on the hook to bail them out.
"Unless they step up and start accepting some of the responsibility for what they've created here, I don't necessarily want to make their life easier," Mitrovich said.
The state's Teachers' Retirement System will cost the state $2.36 billion in the coming fiscal year, an increase of $269 million over the current year.
However, the latest figures show the Teachers' Retirement System is only about 39.1 percent funded.
Sally Sherman, director of member services for the retirement system, said Naperville is being prudent by not going above the 6 percent increases paid for by the state.
"I don't want to downplay the concerns people have," Sherman said. "Six percent is at least better than what we have been used to seeing (from districts statewide)."
Dave Griffith, president of the teachers union, called the district's pension benefit a "minuscule amount" in the state's overall budget picture. He said the real problem is the state taking money from the pension system to balance its budget.
"The core issue isn't the benefit we've gotten in the contract," he said. "The core issue is the legislature's desire to avoid the true issue. ... They have the capacity to do it but it means they have to come up with solutions that provide the long-term fix."
School officials also point out the pension bumps carry a small cost to the district.
Dave Zager, assistant superintendent for finance, estimates the retiree raises cost about $700,000 to $800,000 a year. However, they also produce annual savings of up to $400,000 because some teachers otherwise could have earned more than a 6 percent salary increase and some teachers will retire earlier than they would have knowing the bump is in place.
To be eligible for the 6 percent increases, a teacher has to be with the district for at least 15 years and must sign an irrevocable declaration of his or her intention to retire within four years, Zager said. The 6 percent increase is the maximum they can receive in a year. It is not on top of base or "step" increases.
Zager estimates 115 teachers are taking advantage of the bump this year, a number that is expected to remain steady.
In exchange for the pension perk, teachers who aren't retiring will have their salaries frozen for the first year of the new contract, which includes base salary and "step" increases for experience.
Teachers will receive average salary increases of 2.84 percent in the second year and an estimated 3.14 percent the third year.
Officials say freezing step increases in the first year will save $2 million, a savings that will continue each year even though steps will be reinstated.
The total contract will cost the district less than 1 percent more a year, even with the retirement bumps.
Roughly 91.8 percent of teachers approved the contract last week. The school board voted 6-1 in favor of the deal Monday. It will take effect July 1.
I love this- oh the state is broke but we only add a little to the deficit so it's not our fault...geez. You can't keep adding COST to a bankrupt system ...
----------------------------------
www.dailyherald.com/story/?id=364787&src=76
Naperville Unit District 203 officials are defending their decision to continue boosting retiring teachers' state-paid pensions even as they blast the state for not paying its bills.
School officials say the pension benefits cost the state and district a minimal amount of money and point the finger at legislators for letting the state budget deteriorate.
The District 203 school board on Monday approved a new three-year contract with the Naperville Unit Education Association that represents roughly 1,350 teachers.
The deal renews a provision giving teachers annual pay raises of up to 6 percent for as many as four years before retirement.
The provision was scheduled to expire June 30 unless both parties agreed to continue it - which they did.
While districts are allowed to give raises of more than 6 percent that count toward pensions, the state only pays for the four 6 percent increases. Districts are on the hook for anything above that amount.
Dave Weeks, the lone school board member to vote against the contract, criticized the pension benefit Monday in addition to other provisions of the pact.
"Our school district, along with ... other surrounding school districts, have spent the last few weeks bashing the state of Illinois for the deplorable economic situation they (state officials) have allowed themselves to get into and hence are way behind paying what they owe these districts. ... Now we're going to turn around and ask them to pay artificially high pensions," Weeks said. "Seems to be a conflict in that."
The state is battling a nearly $13 billion budget deficit and owes area school districts millions of dollars, including $4.3 million to District 203. Last month, District 203 Superintendent Mark Mitrovich criticized the state for not living up to its funding responsibilities.
Mitrovich on Monday compared the pension situation to state legislators taking out a mortgage and then not making payments. He said it is the legislators' fault, not the mortgage's fault, and school districts shouldn't be on the hook to bail them out.
"Unless they step up and start accepting some of the responsibility for what they've created here, I don't necessarily want to make their life easier," Mitrovich said.
The state's Teachers' Retirement System will cost the state $2.36 billion in the coming fiscal year, an increase of $269 million over the current year.
However, the latest figures show the Teachers' Retirement System is only about 39.1 percent funded.
Sally Sherman, director of member services for the retirement system, said Naperville is being prudent by not going above the 6 percent increases paid for by the state.
"I don't want to downplay the concerns people have," Sherman said. "Six percent is at least better than what we have been used to seeing (from districts statewide)."
Dave Griffith, president of the teachers union, called the district's pension benefit a "minuscule amount" in the state's overall budget picture. He said the real problem is the state taking money from the pension system to balance its budget.
"The core issue isn't the benefit we've gotten in the contract," he said. "The core issue is the legislature's desire to avoid the true issue. ... They have the capacity to do it but it means they have to come up with solutions that provide the long-term fix."
School officials also point out the pension bumps carry a small cost to the district.
Dave Zager, assistant superintendent for finance, estimates the retiree raises cost about $700,000 to $800,000 a year. However, they also produce annual savings of up to $400,000 because some teachers otherwise could have earned more than a 6 percent salary increase and some teachers will retire earlier than they would have knowing the bump is in place.
To be eligible for the 6 percent increases, a teacher has to be with the district for at least 15 years and must sign an irrevocable declaration of his or her intention to retire within four years, Zager said. The 6 percent increase is the maximum they can receive in a year. It is not on top of base or "step" increases.
Zager estimates 115 teachers are taking advantage of the bump this year, a number that is expected to remain steady.
In exchange for the pension perk, teachers who aren't retiring will have their salaries frozen for the first year of the new contract, which includes base salary and "step" increases for experience.
Teachers will receive average salary increases of 2.84 percent in the second year and an estimated 3.14 percent the third year.
Officials say freezing step increases in the first year will save $2 million, a savings that will continue each year even though steps will be reinstated.
The total contract will cost the district less than 1 percent more a year, even with the retirement bumps.
Roughly 91.8 percent of teachers approved the contract last week. The school board voted 6-1 in favor of the deal Monday. It will take effect July 1.
