The Hartselle City Board of Education has started sending out letters and contacting faculty and staff members about a one-time Voluntary Retirement Incentive Program (VRIP), which will be made available to eligible employees of the school system.

Basically, each faculty or staff member who is eligible will be offered a 1% of current salary incentive for each year they have in the retirement system. If a teacher has worked for 30 years and is eligible for retirement, and meets the criteria for the program, that teacher would receive 1% of their current salary times 30.

Those employees of the system who desire to take part in the program will need to decide and complete retirement paperwork by May 1, 2016.

To be eligible to take part and receive the incentive, employees must meet the following criteria:

*Have tenure or continuing status and hold a regular, full-time position

* Be currently eligible to retire under the Teacher’s Retirement System or reach such eligibility by July 31, 2016

* Be 60 years of age with 10 years credible service or have 25 years service regardless of age. Staff members may also become eligible under the Teacher’s Retirement System by purchasing out-of-state teaching service or military service.

*Have 10 or more years of credible service in the Hartselle City School System

*Complete retirement paperwork by May 1, 2016

There are currently 75 faculty and staff members who are eligible to participate in the voluntary program. If each eligible employee decided to take advantage of the incentive, the cost to the board would be $987,820.43. Eligible employees include those from administration, assistant principals, teachers, central office staff, bus drivers, custodians and child nutrition program employees, aides and school support staff.

The cost savings to the board will come through lower salaries for new incoming faculty and staff, who would replace those who take the incentive package. Also, there are positions throughout the system that would not be replaced.

The board of education discussed this offer during a work session on Jan. 28, 2016, and approved the VRIP at a special called meeting Feb. 3, 2016.

Much discussion took place during the work session about how this program will affect education in Hartselle. All board members and Superintendent Dr. Wilson want to make sure Hartselle continues to achieve the high academic results that the system currently posts, also making sure all faculty and staff know this is a voluntary program.

During the called meeting, board member Venita Jones expressed concerns about the timing of the program. She is concerned about those on the lower end of the pay scale and wished they could have a year to make this decision, and more time to prepare for retirement.

Board chairman Randy Sparkman commented, “ This program is basically fast forwarding attrition on a voluntary one-time basis. By knowing who will take advantage of the program by May 1, the board will be prepared for budget discussions in the fall.” Dr. Wilson will also need staffing plans working this summer. Sparkman also mentioned that the school board attorney has approved this program.

The Voluntary Retirement Incentive Program passed on a 4-1 vote. Board members Randy Sparkman, Jennifer Sittason, Dr. James Joy and Mike Swafford approved the program and board member Venita Jones voted against it.

Wilson added that he is working on getting a retirement advisor to talk with those who are eligible for the incentive program. CSFO Jonathan Craft and Brenda Byrd, who handles insurance, payroll and retirement for the system, will be available for help and to discuss options with the eligible employees. Craft also mentioned that employees who choose to participate could put the incentive money in a 403(b) annuity, which would help in tax savings.

In a letter being sent to faculty and staff members on Thur. Feb. 4, Wilson, writes that due to education being only partially funded by the State of Alabama for almost a decade, it is almost impossible to balance budgets in those years. Wilson also mentions in the letter, the system is still in sound financial shape, however the current economy has caused the board to have to dip into its reserves.

Wilson will also meet with each school’s staff and faculty to answer any questions that may arise about the incentive program.

Currently, any unexpected expenditures, especially repairs, come from the system’s reserve and not from the budget each year. The board and Wilson think this incentive plan will free up monies that could be used for other programs and give breathing room to the budget, so that unexpected repairs and capital projects could be completed without taking funds from the reserve.

In the letter, and during the board discussions, other means of cutting expenses over the next few years were also discussed. One cost cutting measure is examining the transportation system. Hartselle City Schools is currently operating 19 bus routes in the city limits of Hartselle. Only 26% of the students in Hartselle schools ride the buses or approximately 800 students are transported each day. The state of Alabama funds transportation at 78% of costs and the other 22% is funded through local money. Utility costs are also being looked at, along with ways to continue to reduce costs in the system.

Hartselle City Schools currently has $7,208,989 or 3.38 months of operating costs in the general fund. The State Board of Education recommends school systems have one and one half months of operating costs held in reserve.