Wilmington newspaper takes a stand re: double dipping

From John Curry, July 6, 2010

Wilmington News Journal, July 6, 2010

http://www.wnewsj.com/main.asp?SectionID=42&SubSectionID=201&ArticleID=185098

OUR VIEW: Double dipping is bad for Ohio

It’s called double dipping — the practice of hiring retired teachers and school administrators, allowing them to earn a salary and collect a pension at the same time. While it’s entirely legal, and strongly defended among the ranks of education professionals, the practice threatens to stick Ohio taxpayers with a big bill. As a result, we believe a line must be drawn against new double dipping and action taken in Columbus to reform the system that allows it.

In individual cases, a savings can be realized at the local school district. The teacher or administrator will accept a lower salary because he or she will receive both a salary and pension. The school district realizes additional savings by not having to pay benefits that the retirement system pays. At the same time, it is argued by supporters of the practice, the district continues to benefit from the work of an experienced educator.

But a statewide problem looms. When the educator retires, his or her contributions into the State Teachers Retirement System can stop. That system has suffered investment losses, has $40 billion in unfunded liabilities and is seeking a taxpayer bailout. The Ohio Department of Education reports that there are 3,305 Ohioans with credentials to be superintendents. While experience is beneficial, it can also be argued that school districts could be well served by the new ideas and practices of new educators.

Double dipping is especially prevalent among school superintendents. More than 25 percent of Ohio’s 614 school superintendents are drawing full retirement benefits. Superintendents and teachers in Clinton County have been double dippers in recent years. The latest superintendent in Clinton County to seek being rehired after retiring is Ron Sexton, a 30-year veteran of Wilmington City Schools who has served the past three years as superintendent. He has said that, under a preliminary new contract, Wilmington City Schools stands to save $28,000 a year. His anticipated new salary would be $113,000, less than the $115,379 he receives currently. The majority of savings will come from the district not having to pay for benefits it currently pays.

As much as elements of double dipping appear out of balance with the rest of the nation’s work/retirement realities, so is the level of compensation the state gives to school administrators. A February study by the Brookings/Greater Ohio Policy Study Center found that Ohio ranks ninth among states in the tax dollars spent on administration. At the same, the state is 47th in the amount of money going into classrooms. Ohio’s share of spending on administration, the study found, was 49 percent higher than the national average. The State Teachers Retirement System has more working retirees than any of the five Ohio pension systems and paid out $741 million in 2009 to 15,857 retirees. That’s an average benefit of $46,800.

There is much for residents of Wilmington City Schools to consider, and they should be provided ample opportunity to ask questions and raise their concerns publicly. The scheduling of a public hearing today at the inconvenient hour 7 a.m. was the wrong move by the board. Such a hearing should be conducted in the early evening. We urge the Wilmington City School Board to hold at least one more public hearing in the evening prior to its scheduled vote on the matter July 26.

Ron Sexton has served Wilmington City Schools well. It’s double dipping that’s the problem.