MCSB cuts 68 positions (Bradenton: sales, health insurance, school district)

[Ladywithafan]

Board cuts 68 positions to save money
By SYLVIA LIM
slim@bradenton.com


BRADENTON --The Manatee County School Board on Monday unanimously voted to cut 68 positions, hoping to save the district $3.4 million.

In the same school board meeting, district administrators also gave the board grim news about next year's budget projections.

The cuts were part of an annual reorganization plan, said Tim McGonegal, assistant superintendent. In past years, he said the district tried to streamline operations and save money by making adjustments.

Monday's plan was driven entirely by budget cuts, where the district is trying to slash $21.4 million from its operating budget due to a state sales tax shortfall.

The positions eliminated included a drop-out prevention staff, eight bus drivers and a high school teacher in the environmental science program, according to records. Many of the positions are either vacant or will be through retirements.

Of those dozens of positions, three will be held open for a year, McGonegal told school board members.

While McGonegal read through the list, board members peppered him with questions.

What exactly happens to those positions that are being kept open for a year, asked School Board Member Harry Kinnan.

"We have to make do for a year. There will be a decline in the level of service to schools and parents," McGonegal told the board. "We'll try to limp by for one year."

Earlier in the meeting, McGonegal shared bleak information.

This year's property tax collections are below expectations, he said.

Rising fuel costs are expected to drive up energy costs, he said.

Instead of being able to save $1.4 million from an energy savings plan that the district developed for the budget cuts, the district may end up paying $1 million more than expected, he said.

"We'll work in the $1 million," McGonegal told the board. "We still have work to do on the budget."

He also explained how the district went from a proposed 5 percent pay cut to a 1 percent pay cut for most employees.

Both plans do not have raises for staff based on their years of experience, according to a presentation.

Under the 5 percent plan, schools won't face any cuts while the district has to slash $2.4 million. The board will also be able to put aside $1 million in their reserves in case sales tax revenue continues to dwindle.

Under the 1 percent plan, schools face $5 million worth of cuts while the district faces a $5.6 million trim. There also won't be any money for the district's reserves.

Health insurance

The Manatee County school district is facing losing $4.6 million this year in its self-insured health insurance plan, because of rising health costs.

This year, administrators expect to close out the fiscal year by paying about $42 million in expenses. The district would have collected $34 million in premiums.

Administrators proposed several ideas on how to cut costs:

• Offering retirees a plan primarily funded by Medicare

• Raising deductibles or premiums, or both, for dependents

• Creating a specialty drug co-pay for employees diagnosed with cancer or arthritis

• Implementing disease-management programs

Administrators were charged with developing specific plans to deal with the anticipated health care costs for next year.