By Tessa Raebeck
Prior to Tuesday’s board meeting, Sag Harbor School District Business Administrator John O’Keefe presented a review of the entire draft of the 2014-2015 budget to the board.
At its meeting March 10, the board approved an agreement made with the Teachers Association of Sag Harbor to enact an undisclosed early retirement incentive for teachers who retire from the district and are also eligible to retire from the New York State Teachers’ Retirement System on June 30, 2014.
The New York State guidelines require teachers to have worked for at least 30 years and be 55 or older or to have worked for at least 20 years and be 62 or older in order to not have benefits reduced upon retirement.
Mr. O’Keefe said with the early retirement incentive, there are a few projected retirements that reduce the budget lines from drafts presented at earlier meetings.
“These are people that we’ve identified already that have suggested they’d be leaving at the end of the year,” Mr. O’Keefe said.
Those projected retirements would provide for a reduction of $281,313 in teacher salaries and, when combined with others, an additional reduction of $60,708 paid to the state for employees and teacher retirement. Teachers receive retirement benefits from the state, not the district, and the district pays into that system based on its current salaries, not its retired teachers.
“So, if salaries go down, my retirement expenses go down because they’re a direct correlation to the total salaries,” Mr. O’Keefe said.
Reduced by $523,496 from earlier drafts, the proposed budget calls for $36.79 million in spending, a 3.62-percent increase over the 2013-2014 school year, which had a budget of $35.51 million.
“Because of the work over the last four or five years that the district has done with planning, we’re in a very favorable position,” Mr. O’Keefe said. “We may be the only district on the island that hasn’t had to reduce staff specifically for the purpose of balancing a budget.”
The second review of the budget will take place before the next board meeting, on April 7 at 6:30 p.m. in the Pierson Library. The regular meeting will follow at 7:30 p.m. The final budget hearing is May 6 and the annual budget vote is May 20.