As Naperville School District 203 explores all options to help close a projected $12.3 million gap in next year’s budget, the district is now offering a one-time retirement incentive to encourage eligible educators to retire at the end of this school year.
School board members during a meeting this week approved the incentive as a memorandum of agreement between the district and its teachers union, the Naperville Unit Education Association.
Incentive to help pay retiree insurance premiums
The incentive offers up to $48,000 for premiums retirees would pay to participate in health and dental insurance programs, according to the memo.
The newly approved memo expands the eligibility for this insurance payment assistance to all teachers who submit “an irrevocable intent to retire” in the Teachers’ Retirement System by March 6, 2026. If a teacher’s retirement would require the district to pay a penalty for exceeding pension system limits related to final average salary, the memo says the health premium incentive could be reduced.
Incentive could help address budget deficit, but one board member objects
Officials have said District 203’s budget is facing a structural deficit projected to rise to $27.2 million during the 2030-31 school year if no adjustments are made. Michael Frances, chief financial officer, said administrators are implementing a three-pronged approach to decrease expenses: by reducing discretionary spending, consolidating duplicative resources, and streamlining staffing.
School board members approved the one-time retirement incentive by a 5-1 vote, with board President Charles Cush absent and board member Melissa Kelley Black in opposition.
Kelley Black said board members were not given much time to review the memo creating the retirement incentive.
“The memorandum is to address the (budget) deficit. But this deficit did not happen overnight,” Kelley Black said. “So to have us have to make a memorandum decision with only one hour’s notice, it means our community didn’t have the opportunity to see what the memorandum is and provide feedback. So I object to that.”
Superintendent Dan Bridges said the memo about the retirement incentive “was provided to the board as part of background material” for review.
Naperville 203 developing plans for ‘streamlining our staffing’
Bridges said earlier in February that district departments are preparing their staffing projections as part of 2026-27 budget development. He said departments are “streamlining our staffing, where appropriate and necessary.”
Officials plan to bring forward a more detailed staffing plan in March.
If you have a story idea, we want to hear from you!
