San Juan Unified School District will bid an early goodbye to some of its most senior employees in order to help balance its budget.

The district's board of trustees Tuesday night unanimously approved a plan that offers an early retirement incentive to teachers, administrators and others.

About 219 veteran teachers, 52 principals and administrators, and six other employees have asked to participate in the voluntary plan. The buyout would save $2.7 million in the first year.

Fifty-seven of those teachers would not be replaced, nine managers would not be replaced and two confidential employees, such as high-level manager assistants, would not be replaced.

The reason for offering the buyout is the district's large budget shortfall - $16 million for 2004-05. The governor's budget proposal could shave about $6.5 million from that deficit.

But that saving is dependent on passage of Propositions 57 and 58 on the March 2 ballot. Proposition 57 is the $15 billion Economic Recovery Bond Act that Gov. Arnold Schwarzenegger wants to use to help solve California's budget shortfall.

Proposition 58 requires lawmakers pass a balanced budget, establishes a budget reserve and prohibits future borrowing to reduce deficits. Both initiatives must pass to become law.

Even with the passage, the district will face a $9.5 million deficit for 2004-05. Since the outcome of the election is up in the air, San Juan Superintendent General Davie Jr. is moving forward with a plan identifying $16 million in cuts.

Among those cuts being contemplated are 10 counselors and small class sizes for kindergarteners.

A report by a parents budget advisory committee says keeping counselors, maintaining reduced class sizes and retaining campus monitors are the top three priorities for preservation the district should consider.

Nancy Griffin, a San Juan parent on the committee, said she was not surprised by the choices. Parents, she said, "are focused on direct services to students."

Davie said the preliminary budget is an attempt to keep cuts away from the classroom.

Teachers also don't want students directly affected.

"We want to keep class-size reduction," said Nancy Waltz, president of the 2,880-member San Juan Teachers Association.

The teachers association is working with the district to find a way to reduce the $2 million annual cost for substitute teachers to $1 million.

Teachers also want more cuts in the central office budget, Waltz said.

"We told them you have a lot of credentialed people in the central office doing administrative work," she said. "Put them back in the classroom and you will save a lot of money."

The buyout can help the district avoid the disruption of laying off recently hired employees who are usually first in line to be let go in hard times.

"A retirement incentive is intended to get folks who would probably retire anyway but also those who were looking to retire in the next couple of years," said Dianna Garcia, assistant superintendent of human resources.

The district last offered an early buyout several years ago.

Under one example, a retiree with a final income of $63,000 a year would receive a benefit payment of an additional $367 a month for life.

"It is probably better to do this now and get the cost savings out of it and keep the younger people," said parent Terri Cristy. "You do lose some great, experienced people. Those are the pros and the cons."