LORAIN, Ohio — Rather than cut programs or force layoffs, Lorain City Schools is instead buying teachers out.
Lorain City Schools put a 4.97 mill improvement levy on the November ballot this year.
The levy would generate about $3.5 million per year, or $17.7 million, over the life of the levy.
Per the Certificate of Estimated Property Tax Revenue provided by the Lorain County Auditor, the levy would have cost households $174 per year or $14.50 per month for a home valued at $100,000.
Forty-four point sixty-five percent of voters voted in favor, while 55.35% voted against the levy.
The levy was the same amount taxpayers have been paying on two bond issues for the past 20 years— one bond is rolling off this year, and the other is rolling off next year, according to Lorain City Schools.
“[I’m] disappointed. Our community was very clear on where they stood on this. I think there was a lot of confusion. It was hard to explain in a couple of bullet points,” Lorain City Schools Superintendent Jeff Graham said Thursday night. “With the presidential election, it's a lot of noise and it was just tough to compete with messaging. I think part of that worked against us.”
The levy would have gone to repair building necessities.
“We have leaky roofs. We have HVACs going out. Boiler systems need repair, and those things cost money,” Graham added.
Without the levy, Graham said the school district will have to dip into its General Fund for the time being.
That’s only a temporary solution, though.
On Thursday, another option was publicly brought to the table.
“A teacher potential severance buyout which means you don’t have to retire but you can’t work here afterwards,” Graham said. “This is not someone trying to force people out. We have an amazing staff. [We] love them. This is just purely financial.”
The school district needs at least 20 volunteers. Those cannot include substitute teachers, part-time staff, or those who retired and were then rehired.
Having 15 educators come forward, though, would allow the district to “break even.”
Those eligible staff members will receive $65,000 plus applicable sick leave pay. That money will be split into 60 equal payments, and those who accept the severance offer cannot teach in the Lorain school district for 60 months.
The severance pay will not be taxed until withdrawn.
Those employees' last day would be June 30, 2025, and their severance benefits would not go into effect until October.
The school district can retain some of those employees for up to an extra year, and then their severance benefits will kick in after that.
“It's a quite generous package, but I understand the community is going to have some questions. You're asking for a levy, you're giving teachers money, but it is a cost saving move so that the district can get some of the higher paid teachers to retire and go enjoy their lives and then bring in some younger teachers that make a little bit less money,” said Lorain Education Association President and teacher, Julie Garcia.
Garcia has taught in the Lorain school system for 35 years. She said she has seen severance packages be offered once or twice before to cut costs.
Those employment vacancies will either be fully or partially filled.
The severance package is a one-time offer.
Once the plan is finalized, eligible employees will have 45 days to make a decision.
Garcia said she believes at least 20 educators will accept the offer, as many have already started inquiring about it.
“I just have to wonder how many would be the max,” she added.
Graham said there are 94 Lorain City Schools educators who meet retirement requirements. There are a total of 530 teachers in the district.
“We need to adjust our staff accordingly and now we just need to adjust more,” he noted.
Hypothetically, if the district doesn’t meet the volunteer mark, Graham said the school board will re-evaluate the proposal.
“Take their time. Make a decision that's best for them and their family. If there's anything we can do by providing more information or consults, please let us know,” Graham stated.
The goal is to save at least $10 million in five years if enough teachers come forward and accept the severance package.
Graham said the idea of a severance package was first brought up two years ago.
