Money woes put squeeze on Re-1 staff

Money woes put squeeze on Re-1 staff

December 15, 2001

By Aspen C. Emmett
Journal Staff Writer

With declining student enrollment and an extremely tight budget, the Montezuma-Cortez School board has little to offer in the way of pay increases for District Re-1 employees and even less to offer in benefits.

Last year, dental insurance was dropped because of an ongoing financial squeeze. The year before, vision coverage was axed.

Now, with little hope for more funds any time soon, and no input from the employees themselves, the board is faced with the unpleasant task of putting together a less-than-enticing salary and benefits package for the new year.

"We’re kind of at a loss this time around," said board president Steve Hinton. "We’ve had a lot more input in the past from the employees ... but this year they have no interest in supporting their people, I guess."

The lack of a salaries and benefits committee this year will have a definite impact on what the employee packages come with, board members commented at a special workshop Thursday evening.

"I think it’s really sad that they’ve lost interest because they were a wonderful tool for us in the past," said board member Jackie Fisher.

A sharp decline in student enrollment, high insurance usage, and a number of retirees still collecting benefits were some of the factors the board cited as "hurting" the district’s finances.

The board is expected to take action on a package that will allot for a 3 percent pay increase at the base level of the teacher salary scale, but provide a 100 percent increase in health-insurance deductibles. That would make salaries for first-year teachers holding a bachelor’s degree slightly over $25,000 a year and the deductible $1,000.

The deductible was $250 two years ago.

However, Assistant Superin-tendent George Shumpelt pointed out that only approximately 25 percent of the district’s 476 employees met the $500 deductible last year, so 75 percent of the employees would likely benefit from the higher deductible because it would free up money in the overall picture.

The board also discussed the idea of cutting off health benefits for retired district employees as a way to concentrate on the teachers currently serving the schools.

"It’s not the whole cause (for tight finances), but it doesn’t help our cause," Hinton commented. "The school system today is our concern."

Business manager Jim Riffey said that many retirees are eligible for Medicare and Social Security but sometimes the district benefits reduce the amount they can receive otherwise.

"It’s not as bad as you might think, chopping us old people off," Riffey said.

As it is, 82 percent of the district’s budget goes to employee salaries and benefits — a figure that isn’t all that unusual for a "labor-intensive business."

Shumpelt said the current proposal of a 3 percent salary increase is likely the best the district can do because it "bolsters" incentive for recruitment, although it does little for retention.

"You get more bang for your buck with higher salaries," because young teachers are "not looking at benefits as much."

Board member Steven Bloink added that the younger teachers are healthier and stronger and don’t need the benefits as much.

Fisher stated that because of low enrollment, there will come a time that they will have to look at cutting positions in the schools to make up for financial shortcomings.

Despite the unpleasant notions of layoffs and empty pockets, Fisher suggested that the board look at other ways to boost morale for employees and improve public relations.

The board reiterated that it was essential to have employee input in order to give more in the salary and benefit package. But for the time, Shumpelt said he hopes the teachers have enough faith in the board to come up with the best package possible.

The board came to the consensus they would make the new year’s packages as appealing as possible within the current restraints and would look at more in the future if it became workable.

"It may take an upset (by the employees) to get interest going again in a salary and benefits committee," Fisher said wistfully. "It’s very disappointing that there isn’t a single employee here," she added.