Olathe school board president Stacey Yurkovich said Thursday the district will not cut retirement benefits for staff this year, but the issue may eventually return as Olathe continues to face budget struggles.
“While these programs go beyond what most school districts offer as retirement benefits, they also represent a significant financial commitment because they are fully funded by this school district,” Yurkovich said. “We want to be clear that future changes to retirement benefits may still need to be considered.”
She said special education funding, declining enrollment and the upcoming new state education funding formula will be major factors in those decisions.
“These decisions will help determine what we can maintain as a district,” she said. “We will face many difficult decisions over the coming year amid these challenges … We value the dedication of our staff, and remain committed to supporting our community through the decisions ahead.”
The school board was facing a June 30 deadline to decide on the issue. Cuts would have required one year’s notice before taking effect.
Yurkovich’s statement was made in response to comments by Karen Bishop, a librarian at Mission Trail Middle who has spoken at the last three board meetings asking not to cut benefits.
The benefits on the table are fully funded by the district, which the district said means cuts would be straight savings — they are the “Voluntary Early Retirement Plan” and the “Health Reimbursement Arrangement (HRA) account,” which converts sick leave upon retirement into a healthcare account.
Read more on the arguments against cutting the benefits, and some of the district’s budget struggles and pressures, in our story HERE. District officials said Olathe has spent about $19 million total on these two retirement benefits over the last five years.
In a statement to The Olathe Reporter Thursday, Bishop commended the decision.
“I am relieved by the decision and grateful for the statement that emphasizes intention to maintain all educator incentives,” she said. “I really hope that state funding allows them to do so.”