Fresno Unified Board Approves Early Retirement Plan to Cut Costs

On Wednesday, the Fresno Unified School Board voted to implement an early retirement plan aimed at reducing costs amid declining student enrollment. Six members supported the motion, while one member, Elizabeth Johasson Rosas, abstained due to concerns about potential unintended consequences.

The decision comes as the District grapples with significant challenges in the aftermath of the COVID-19 pandemic. In California, school districts receive funding based on average daily attendance, and Fresno Unified has reported a decrease of approximately 820 students compared to last year. This decline has resulted in a loss of around $30 million annually, primarily due to reduced classroom attendance.

Patrick Jensen, the Chief Financial Officer of Fresno Unified, explained the rationale behind the decision. “As the district has been experiencing declining enrollment, we felt like this was a good time from a fiscal perspective to make this offer,” he stated. The early retirement plan is designed to honor the service of long-standing employees while simultaneously addressing the District’s financial challenges.

The plan targets approximately 1,900 eligible employees who meet specific criteria, including being at least 55 years old and having served five consecutive years in the district. This group encompasses a variety of positions, including classified staff such as bus drivers and food service workers, as well as teachers, supervisors, and managers.

Under the proposed plan, eligible employees who accept the offer will receive a total of 80% of their salary for the current year, distributed over the next five years at a rate of 16% of their final salary each year. Additionally, employees have the option to extend this payout period, potentially receiving benefits over a lifetime.

Manuel Bonilla, President of the Fresno Teachers Association, expressed optimism about the initiative, describing it as beneficial for both the District and its employees. “The District gets to save money; our educators and all employees get an incentive as they leave,” he noted. The Fresno Teachers Association represents around 4,700 employees throughout the District.

Fresno Unified anticipates that it will have a clearer picture of how many employees will accept the retirement plan by December 5, 2023. A decision on whether to approve or rescind the plan will be made two weeks later. Should the proposal proceed, employees will have until the end of June to submit their resignations.

This early retirement initiative reflects Fresno Unified’s ongoing efforts to adapt to a challenging educational landscape while ensuring the well-being of its dedicated staff.