After Gov. Brad Little urged state colleges and universities to tighten their belts, North Idaho College officials dusted off an old plan to solve a new problem.

“It’s really a plan we had about 10 or 11 years ago,” said Chris Martin, vice president of business and finance affairs at North Idaho College. “It was a successful program, and we’re optimistic about it this year.”

The “plan” is the Special Voluntary Separation and Retirement Program, a one-time payment package available to employees in an effort to cycle out longer-tenured employees.

“It’s in response to a changing budget environment colleges are facing right now,” Martin said. “Personnel is one of our largest expenses. By giving some of our longest-serving employees the option to retire early, we’re rotating out higher salaries while giving some of our employees a break.”

Colleges across the state have been instructed to pinch pennies as Little pledged to prioritize education and cut state spending across the board. Two-year schools have left vacancies open, hired part-time staffers and cut spending. North Idaho College’s hiring freeze was part of the strategy. Martin said this new retirement package could help make the difference.

“The savings are dependent on how many employees take advantage of the [plan],” Martin said. “One scenario we have modeled garnered approximately $675,508 in savings next fiscal year, taking into account salary and benefits.”

Sixty NIC employees are eligible: 29 staff members and 31 faculty. Qualifying employees have to hit a few technical benchmarks to qualify, Martin said. For example, the employee has to be at least 55 years old no earlier than June 30, been with NIC for at least the last 15-plus years, and whose position is at least 70 percent funded by the college’s general fund.

Salaried employees who opt in would receive a one-time payment of 50 percent of their annual salary — not including stipends, summer work, overtime and other perks — that’s capped at $30,000. Non-salaried participants would receive a cash-out payment that factors in their hours worked over the year, with the same $30,000 cap.

Martin said he’s optimistic, though NIC officials are waiting to see how many will take advantage of the package, as employees have until Feb. 4 to enroll. He added that the move isn’t merely for cost-cutting.

“This is also a way for us to honor our employees who have been with us a long time but are ready to start that next step in their lives,” he said. “We value our employees’ contributions — especially our longest-serving employees — and this is a way to recognize their needs, as well as address our own.”