Teachers take pay freeze
More cuts planned if levy fails
By Jeff Gallatin
North Olmsted
Published Jan. 10, 2007

North Olmsted School Board members John Lasko and Joanne DiCarlo.

School officials hope a wage freeze and the district’s teachers union agreeing to pay a portion of their health care premiums can help lead to a new operating levy passing and several million in budget cuts being avoided.

District and union officials announced at the school board’s organizational meeting last Thursday the new one year agreement which contains a one-year freeze on wages and the North Olmsted Education Association members paying 5 percent of their health care premiums. Previously, the district picked up the all the health care costs. In addition Superintendent Kurt Stanic showed more than $4.2 million in specific financial figures for what would be cut if the Feb. 6 special election on the proposed $6.5 million levy fails.

Stanic said the agreement shows the union is aware of the need for keeping a tight rein on district finances.

“The teachers recognize the serious financial condition of the district and want to make sure the instructional programs remain solid and stable,” Stanic said.

He said the agreement will bring the district cost savings but does not negate the need for the district to pass another operating levy and gain additional operating funds.

“This agreement in no way changes the critical need to pass an operating levy on Feb. 6, 2007,” Stanic said. “The district has lost over $10 million in revenue because of the four levy defeats experienced over the last two years.”

When asked, district Treasurer Robert Matson said the wage freeze and employees agreeing to pick up health care costs would save the district about $500,000. Because the other operating levy proposals have failed, Matson has said the district still needs to make some financial cutbacks.

District officials have said they will cut for the 2007-08 school year 30 to 50 jobs, the district sports programs, other extra-curricular activities, the summer enrichment program and administrative positions if the 6.5-mill levy does not pass in February.

Annabel Brigleb, head of the NOEA, said the Association is aware of the financial problems.

Superintendent Kurt Stanic listens to Annabel Brigleb of the North Olmsted Education Association. (Photos by Larry Bennet)

“The teachers of the North Olmsted Education Association recognize the financial crisis our district faces,” Brigleb said. “We are acutely aware of the difficulties of many in our community, but we also want what is best for our students and their futures. In the past, we have taken several wage freezes and have waived additional salary increases in exchange for benefits. We have worked hard to build a well rounded, strong program of opportunities and excellence and we are proud of our accomplishments.”

Brigleb said the Association said its members felt it needed to take additional steps to help.

“However, times are changing,” she said. “The current situation is frightening. We want to help even more. Therefore we are voluntarily taking a wage freeze for the next year and have agreed to pay a portion of our health care premiums, as many of our residents do. This in no way negates the need to pass the levy, nor does it eliminate cuts that will occur should the levy not pass.

“It is a show of unity with our community, an expression of our concern for our students and a demonstration of our willingness to do our share. We hope and pray the community of North Olmsted will now do their part.”

School Board President Mike Raig said the board appreciates what the Association members did.

“It’s tough for anybody to give up something in terms of wages, or having to pick up additional health care costs nowadays because that’s added costs,” Raig said. “Clearly the teachers realize the situation the district is in and are doing what they can to help as well.”

Stanic and Raig both noted the district has already implemented several cost-saving measures. It made about $722,000 in non-personnel budget cuts which took effect Jan. 1. In addition, the district will reduce its busing of students to state minimum standards starting April 1, which will save an estimated $401,000.

District officials have slated the cutting of three administrators and their support staff for Aug. 1 but have not set dates for cutting what Stanic’s preliminary plans said would be between 30 to 50 jobs in the district.

“If we don’t get a levy passed, we will be cutting positions,” Stanic said. “Everything we do in the district has a purpose, so cutting programs or people for those programs hurts.”

In his presentation, Stanic said the other proposed cuts and their projected savings are: supplemental student activity contracts, $244,872; sports program contracts, $484,682; administrative reductions, $543,201; certified staff reductions, $2,258,996; classified staff reductions, $389,944.

Stanic said the staff cuts would affect all areas of the district, including counselors, teachers, transportation workers and the administrators.

Board officials said they would have to start notifying people in March if their contracts are not going to be renewed.