2/26/2008
Can't paint the buildings, but pay off 55 y/o's with millions
If you’re part of a community going to referendum this spring (and even if you're not), you absolutely must ask your business services boss what your school district’s post-retirement liabilities are – both annually – and the total projected for the future. You most likely will hear about some pretty huge numbers.
The Neenah Joint School District “will dish out nearly $4.4 million in early retirement benefits this year.” Big, big bucks. Nearly 5% of their total budget. And the total unfunded liability for future years is $48M. Wow. The details are in two articles written by Duke Behnke of the Post-Crescent, and included in yesterday’s FoxPolitics News.
Behnke describes the situation well.
At one time, the Neenah Joint School District's early retirement program saved money for taxpayers. That's no longer the case, and it hasn't been for years.
…. The program allows employees who have at least 15 years of service with Neenah schools to retire at age 55. They receive an annual stipend — currently $16,413 for teachers and at least $22,283 for administrators — for 10 years or until their death, whichever comes first. There are no survivor benefits.
They also receive health insurance until Medicare kicks in at age 65.
The benefits are in addition to those earned by public employees through the Wisconsin Retirement System.
Neenah's program was established to speed the exit of veteran employees so the district could replace them with younger, lower-cost employees.
Nice work if you can get it.
Supt. James Wiswall said the early retirement benefits for a single teacher now cost the school district $84,106 after 10 years. The salary differential produces a savings in the first three years, but it cannot keep pace with the cost of the benefits over a decade.
"We can't expect private citizens to fund this level of benefit when they don't have it," he said. "They are saying, 'Enough is enough.'"
You’re telling me. The self-same superintendent then says the early retirement program helped Neenah retain teachers and administrators because of the 15-year minimum requirement. What? If the Neenah School District is anything like the nearby Appleton School District, they have a list of prospective employees (teachers, anyway) that numbers in the hundreds. A program to retain employees? Give me a break.
Oh – and by the way, 56 year-old Wiswall is taking big time advantage of his district’s program:
Supt. James Wiswall stands in line to receive at least $600,000 in taxpayer-funded early retirement benefits during the next decade.
Wiswall, 56, will retire in June after 29 years with the Neenah Joint School District, including the past eight as superintendent.
As part of the school district's early retirement program, the district will pay Wiswall $42,774 annually for 10 years, or $427,740. The annual stipend is equal to 30 percent of his $142,581 salary.
The district also will pay for Wiswall's family health insurance until he is eligible for Medicare at age 65. His family plan cost the district $15,290 this year, and the premiums have been increasing at double-digit rates.
Jay Schroeder is the taxpayer who urged Behnke to write the story, calling his attention to the obscene irony of it all. Schroeder, in expressing disgust at payouts for Wiswall and his business services director Larry Krebs, pointed out the peeling paint on the exterior of the district’s offices – and who knows where else.
Schroeder said if voters had been aware of the [early retirement program] burden, they never would have approved the 2006 referendum that authorized the school district to raise an additional $6 million in tax revenues to support school operations.
He said the referendum was sold to the public as a means to support educational programs for students.
"I wanted that money to be used for the children, not for retirement benefits," Schroeder said. "It's just not right. It isn't for the kids."
Schroeder is spot on. I wrote about these excessive retirement dollars in September, 2006 and then again in early 2007. I noted that at the time, Appleton was the runaway winner in the post-retirement expenditures derby. It’s interesting to note that Neenah hadn’t reported their post-retirement liabilities. Now we know all too well.
Tell me again it’s for the kids. I absolutely don’t buy it.
COMMENTS
It amazes me that the board did not realize with double digit health care inflation that this would surely be a long term problem. It was not long ago they were bragging about the money they were saving.
Ken Romenesko (Tue Feb 26 07:02:36 2008)
Jo,
Excellent article. Parents/taxpayers in Neenah should be angry!
Something is very wrong.
David (Tue Feb 26 07:19:32 2008)
Early retirement perks. Hummm...sounds an awful lot like the way corporate business and government behave.
(Tue Feb 26 10:08:58 2008)
the taxpayers of neenah are the same ones that voted for our esteemed governor. now get ready to go down the Dolyle-ette.
cranky franky (Tue Feb 26 21:27:46 2008)
|
