FRASER — As part of a plan to cut $718,000 from its 2008 budget, Fraser Public Schools will be contracting for substitute teacher services and other support staff. The move is estimated to save the district $87,000, according to The Macomb Daily.
State law allows school districts to use the services of a private company to dispatch substitutes as they are needed. This saves districts 17.7 percent of payroll cost for substitutes by eliminating the need for pension fund contributions. Since substitutes typically do not work full-time, few ever become fully-vested in the school pension fund.
Most private companies offer 401(k) retirement accounts instead of the defined-benefit plan provided by school districts.
In addition to contracting for substitutes, Fraser may eliminate some teaching positions and reduce its support staff.
Reference: The Macomb Daily, "Fraser schools outlines cuts to trim budget by $718,000," July 5, 2007