BOE votes to reinstate Social Security

Social Security, the Tentative FY 2009 Budget, and changes to the student handbook at LCES, LCMS, and LCHS were under discussion at the regular meeting of the Lincoln County Board of Education held Tuesday, June 3.

The issue of Social Security was first raised by a group of teachers at the board's April 1 meeting.

Opting out of Social Security in 1980, the Lincoln County School System, which has a pension plan, is one of a handful of school districts (30 out of 150) that do not pay the tax on their employees. This means that the teachers, who have participated in Social Security prior to coming to Lincoln County, will have their benefits reduced the longer they teach here.

A recent survey revealed that if Social Security were offered, only half of the system's employees would take part in it. However, those numbers are subject to change.

With 100-percent participation, Social Security would add roughly $509,000 to the budget the first year, since the system is required to kick in 6.2 percent of each employee's salary for the program.

Speaking from the floor at last week's meeting were Shawn Davis and Janet Dukes, who represented a group of teachers in appealing to the board to take the necessary steps to reinstate Social Security.

"I have a friend, who owns his own business, who got hurt in a motor vehicle accident," said Davis. "It took all of his savings and he pretty much lost his business because he didn't have Social Security disability. This was a wake-up call for me - I want to have disability insurance in case something happens."

He went on to read a letter from retired teacher Helene Rhodes, who was unable to attend the meeting.

In her letter, Rhodes outlined the personal consequences of not having Social Security during her teaching career at LCHS. "I have been receiving a Social Security check for the last year. However, the check will now be reduced because I am retiring from a school system that does not participate in the Social Security program. Although the estimation is not final, the SSA's (Social Security Administration) figures reveal that I will receive less than half of what I presently receive."

Following Davis on the agenda was Janet Dukes, who pointed out that the tax base for Lincoln County is expected to increase by $14 million this year, which translates into $180,348 in additional property tax revenues.

Using this data, she calculated that in the event 100 percent of the teachers want to participate in Social Security, it will cost the system $509,948 the first year. Without using the growth in the digest, the county would have to raise taxes 1.645 mills to fund the program; with the additional revenues, the board would have to raise the millage rate 1.063 mills.

One mill of tax represents $382,056.

Moreover, if only 50 percent of the teachers choose to participate in Social Security, it will cost the system $254,974 the first year. With the additional funds generated by the growth of the digest, the county would have to raise the millage rate .241 percent.

"The transition will occur over time," stated Dukes. "As employees not participating in Social Security leave, new employees will be added gradually at lower salaries. The lower salaries plus 6.2 percent are still less than the salaries paid to retired employees, who return to teach part time."

In his remarks, Dr. Robert Williams, chairman of the board, said, "These teachers don't have a choice. It's not right for us to deny them something we're going to get."

Board Member Gail Remsen stated, "It doesn't seem fair to allow those teachers, who decided 27 years ago not to take part in Social Security, to dictate what teachers can do from now on. Teachers are retiring with 60 percent of their salary and finding out they can't make it on that.

"Our teachers want a choice, and it's up to us to give them one."

Dr. Williams indicated that if Social Security is reinstated, each new hire will have to participate in the program, and the cost will be a line item in the budget each year. "There will be 100-percent participation from this day forward," he added.

The chairman went on to say that the "crunch" is the new school. "If we don't make our bond payment, we will have to raise the millage rate again an estimated 2.5 mills.

"Then, there's the budget," he continued. "Things have to be purchased - we're budgeting more for fuel and cutting out other items. I feel the pain of our teachers and sympathize with their plight - it's just that everything is coming in at one time.

"I don't have any problem with doing away with the new school, but we've stepped over the line. I don't think we can back out now."

Board Member Wayne Williford suggested that teachers start preparing for retirement early. "If they start investing from day one, they will have even more than they'll receive through Social Security."

In further remarks, he said he feels the board should wait until the new school gets off the ground to reinstate Social Security, adding that he is scared that costs associated with the building of the new school will increase.

According to Dr. Randall Edmunds, superintendent of schools, "We need to get the project out for bids soon - prices are down as far as construction is concerned."

In other comments, the superintendent said, "Our millage rate (12.882) is currently two mills below the state average. This is probably the reason: we don't have to pay for Social Security out of board funds. We can make a commitment to reinstate the program, but the taxpayers will have to pay for it."

At this point in the meeting, Ficklen Guin, assistant superintendent for transportation and nutrition, addressed the board, saying, "We made a bad mistake cutting out Social Security. We did it to avoid raising taxes .5 mills.

"We thought we were getting a raise because we didn't have to pay the five percent. It should have been mandatory to put the money in a savings account. I was young and didn't think I'd get old.

"Now, we need to bite the bullet and do what we should have done years ago. Social Security and disability were never mentioned back then. We made a bad mistake, and we need to correct it."

Following Guin's remarks, Remsen made a motion to authorize Superintendent Edmunds to file a Letter of Intent for Request for a Referendum for Social Security. The motion was seconded by Board Member Robert Hearst.

Williford and Board Member Becky Reed opposed the motion. Chairman Williams broke the tie by voting in favor of reinstating Social Security.

"This shouldn't have been done 27 years ago," stated the chairman. "Still, it's going to be hard in the future."

The board agreed that following an employee election in December or January, Social Security will go into effect January 1, 2009.

In other business, the board reviewed a copy of the Tentative FY 2009 General Fund Budget, which calls for a tax increase of two mills.

The $13,165,294 budget reflects an increase of $713,066 over last year's budget.

"We are proposing the two-mill increase to bring our Fund Balance to $823,396," said Dr. Edmunds. "Things get uncomfortable when it goes much below this."

According to Kaye Bufford, comptroller, the system will experience the following changes in revenues:

.. A net increase in interest income and Headstart reimbursement funding.

.. A $126,546 decrease in QBE (Quality Basic Education) funding, which will be offset by increases in state grants.

.. A $287,825 decrease in QBE Equalization funding and other reductions in state funds.

"This is the result of an increase in our tax digest and the board not raising the millage rate," said Superintendent Edmunds. "The state penalizes you. Because of the digest increase, we are considered a wealthy county."

.. A decrease in Impact Aid from the federal government.

The comptroller went on to list a few of the major additions to the budget, including salaries and benefits, $319,546; supplement increases, $66,864; travel, $15,025; fuel for buses and electricity, $45,035; the Cycle 3 lease payment for computers, $90,000; upgrades to the LCES Media Center, $12,478; a new roof at LCMS, $275,000; moving the alternative school to the LCES campus, $13,046; the renovation of bath- rooms at LCMS, $15,000; and band instruments, music, and clinicians, $21,812.

All total, the system will receive approximately $79,259 less in state funds and $125,435 less in federal funds, compared to FY 2008. "Since these funds decreased and expenditures increased, a millage rate increase is needed to balance the budget," said Bufford.

Concerning salaries, it was noted that Governor Sonny Perdue and the General Assembly have mandated 2.5-percent raises for all certificated personnel, bus drivers, and school food service workers. The board usually approves raises for teachers, whose positions are not funded by FTE earnings; paraprofessionals; maintenance and custodial workers; and secretaries as well.

In a related matter, Bufford explained that the system will have to increase the pay for substitute teachers and paraprofessionals, bus drivers, maintenance workers, and school food service workers to comply with federal minimum wage requirements, which go into effect July 24, 2008.

In other discussion, Superintendent Edmunds pointed out that the proposed budget does not include Social Security.

"Since Social Security will go into effect on January 1, we'll only have to fund half a year in the FY 2009 Budget. I think we need to be conservative, plan for 100-participation, and budget one mill of tax for Social Security in FY 2009."

The estimated cost for Social Security for half a year is .67 mills.

After talking with the principals present about deleting various projects from the budget, the board asked Dr. Edmunds and Comptroller Bufford to make cuts in the budget as well as factor in the cost of Social Security, resulting in a millage-rate increase not to exceed two mills.

The board agreed to meet today (Thursday) at 7 p.m. at the board office to adopt the Tentative FY 2009 Budget.

In further business, the board reviewed and approved changes to the student handbook at LCES, LCMS, and LCHS.

The changes included:

LCES: This year, the elementary school student handbook will feature a new policy containing the guidelines and procedures governing homework assignments for students in each grade.

LCMS: The only major change in the middle school handbook is a revised eligibility policy for sports.

According to LCMS Principal Pam Carmichael, "In the past, we have made decisions regarding eligibility at the end of the first semester. However, since two of our major sports are played during the first semester, we would like to review eligibility at the end of each nine weeks. If, at the end of the first nine weeks the student is passing five subjects, he can play; if not, he can sit out and focus on academics."

LCHS: Most of the changes are minor. Nevertheless, the new student handbook does contain a clause regarding the enforcement of the dress code at all awards night ceremonies.

Also during the meeting, the board:

.. Was informed by Superintendent Edmunds that Amanda Gay, a rising senior at LCHS, was elected president of the North Region Area II Future Farmers of America. Her brother, Will Gay, served as regional vice president this year.

.. Voted to sign an agreement with the City of Lincolnton to provide a sewer line for the new school. The board's contribution to the project is estimated at $419,575.

.. Voted to pass a resolution to request the authorization of a "Referendum for Medicare Coverage." The group likewise voted to approve a "Plan and Agreement with the State of Georgia Employees' Retirement System for Medicare Coverage."

.. Voted to raise the prices of breakfast and lunch at all three schools. Breakfast at LCES and LCMS/LCHS will cost 75 cents; whereas, lunch will cost $1.50 at LCES and $1.75 at LCMS/LCHS. Adult breakfasts will be priced at $2.50 and lunches at $1.

Lunch prices have not increased in at least 10 years, said Nutrition Director Ficklen Guin.

He went on to add, "The nutrition program stands on its own. We receive no tax money. Still, we've been able to complete a lot of projects, including the purchase of new kitchen equipment, air conditioning units, and tile using nutrition funds."

Board Member Williford commended Director Guin for his management of the nutrition program.

.. Was informed by Superintendent Edmunds that approximately 200 students are participating in summer school programs currently being offered by the system.

.. Reviewed financial reports for the General Fund for the period from July 1, 2007, through May 31, 2008; the SPLOST Fund through May 31, 2008; and the Construction Fund through May 31, 2008.

.. Voted to grant a request made by Lincolnton Baptist Church for Team Impact performances to be held in the LCHS Gymnasium March 6 and 7, 2009.

.. Voted to approve an agreement to allow CSRA EOA, Inc. Head Start to locate portable units on the LCES campus for the period beginning July 1, 2008, and ending June 30, 2010.

.. Voted to grant a request made by parents moving into the county to allow their child to attend LCMS during the 2008-2009 school year.

.. Voted to accept the low bid of $73,845.53 for the LCES Drainage Project, submitted by H & H Industrial Maintenance, Inc. The improvements will be funded in the FY 2009 Budget.

.. Heard the second reading of revisions to the Administrative Personnel Separation Policy. The policy was approved as read.

.. Heard the first reading of revisions to the Heat Index Policy. The proposed revisions call for the heat index limits for outside athletic practices to be raised to the following: a heat index of from 100 to 104 degrees, frequent water breaks; a heat index of from 105-109 degrees, athletes must practice in shorts; and a heat index of 110 degrees and above, practices must be held inside.

A survey revealed that the system's present policy contains the lowest heat indices in the surrounding area.

.. Reviewed and approved the following policies with no changes: Administrative Personnel Hiring, Annual Operating Budget Preparation Procedures, Annual Operating Budget Final Adoption Procedures, Local Tax Revenues, Bond Sales, Inventory, Inventory Disposition Form, Expenditure of Funds, and School Properties Disposal Procedure.

.. Voted to enter into executive session to deliberate upon the employment of personnel. Upon returning to regular session, the board:

.. Voted to approve Lynn Odum to serve at the will of the board as secretary to the superintendent.

.. Voted to release Lori H. Cope from her 2008-2009 teaching contract.

.. Voted to approve Katrina Kelly for a teaching contract for the 2008- 2009 school year.

.. Voted to approve Angel Kamara as a LCHS summer school teacher.

.. Voted to accept the resignation of Larry Rice from his position as maintenance supervisor at LCMS/ LCHS, effective June 30, 2008.

.. Noted that the services of interpreter Catherina Brand will no longer be needed.

.. Voted to approve Juanita H. Brown for substitute secretarial work.

The meeting was recessed until 7 p.m. today (Thursday) at which time the Tentative FY 2009 Budget will be considered.

The next regular meeting of the board will be held Tuesday, July 1, at 7 p.m. at the board office on Metasville Road.