Kettering teachers have agreed to a new three year contract that will result in big savings to the Kettering School District. These savings are shown in the new five year budget plan prepared by the Kettering School Treasurer, Steve Clark.
Steve Clark, Treasurer for Kettering City Schools.
The previous five year budget plan filed last October shows that the total expenditures for the next four school years were expected to be $353 million. The new plan shows a reduction of $19.5 million — a 5.5% in total expenditures — in the next four years and shows total expected expenditures for the next four years to be $334 million. Almost all of this reduction comes from a reduction in personal costs.
In the next four years the plan shows a 6.4% reduction in personal costs — a savings of $19.3 million.
The new three year teachers’ contract will allow no step increases for longevity in the first two years of the contract, meaning if a teacher is on step five this year, he or she will remain on step five for two more years, and will move to step six on the third year. And the contract calls for a zero increase in the base salary.
Also contributing to savings for personal expenses is the fact that teachers will pay 15% of their medical insurance, rather than the 10% they previously paid, and the new plan shows a reduction in force for teachers, amounting to ten teachers over the life of the agreement.
The new budget shows that, regardless of these savings, regardless that property tax revenue continues at the current rate, by fiscal year 2014-2015, there will be a shortfall of $8.9 million. The plan, right now, is to ask the public for renewals:
- .6 mills for permanent improvement, November 2011
- 4.8 mills for operating expenses, May, 2012.
The budget calls for new taxes in May, 2013. As it stands now, the 2013 renewal — to make up for the $8.9 million shortfall — will require new Kettering property tax of 6.8 mills. Kettering stands to lose a lot of income from the elimination of reimbursement for the Tangible Personal Property Tax assessed on businesses. If the Ohio Assembly follows through on a proposal to make this reduction less severe, Kettering will lose less money and the amount of new property tax needed in 2013 will be lessened. If the new Assembly plan goes through, the amount of new tax needed in 2013, rather than 6.8 mills, will be 4.8 mills.
One interesting omission in the new five year plan is any adjustment for the fact that according to SB-5, Kettering will no longer be permitted to pay the entire retirement amount of its administrative staff. Currently, for administrators, the district pays the entire 24%. Under SB-5, all employees will be required to pay at least 10%. This 10%, in Kettering, amounts to $342,000 each year.
