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Gayle Hedrington

School Board refuses state teachers' retirement rate increase

September 10, 2009

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According to School Administrative Unit (SAU) #43 Business Administrator, James Venzina, Croydon is the only school district in the state that has refused to pay a 5 percent increase to the state teachers' retirement fund. 

To help balance the state budget, legislators reduced the state share by 5 percent, requiring school districts to make up the difference for the next fiscal year (FY). Another 5 percent increase will be added for FY 2011, increasing communities' portion from 65 percent, set in 1970, to 75 percent.

At yesterday's (Sep. 9) school board meeting, the Croydon School Board decided to maintain the motion passed unanimously Aug. 12 to not pay the increase and to not join the class action suit by other school districts. The Board agreed that they had accepted the old rate of 65 percent which had been included in the Croydon district's state-approved FY 2010 budget. 

School Board member George Caccavaro reported that he spoke with State Representative Tom Howard over the weekend and that Howard is in agreement with the board. Howard stated that he did not vote for that action. 

Jim Peschke, also a School Board member, said that he believes the recent legislation is unconstitutional since there is a law prohibiting unfunded mandates. 

The school board sent a letter to the state and is awaiting an answer, before revisiting their decision. 

SAU #43 is comprised of seven schools in Newport and Croydon.

 

Please feel free to contact me with any information, news, announcements or just to say hello at gaylehed@gmail.com Have a great week.

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