After exploring early-retirement options for employees, Fresno Unified officials Wednesday said the idea won't pencil out for 2004-05 because it would be too expensive during tight economic times.

Fresno Unified officials looked at different early-retirement packages as one way to cut expenses, but Chief Financial Officer Paul Disario said it "was not financially prudent at this time."

Like other public agencies statewide, Fresno Unified is bracing for some level of budget cuts, depending on the fate March 2 of a $15 billion economic recovery bond measure and the status of Gov. Schwarzenegger's proposed budget in which education fared better than other agencies.

If Proposition 57 wins approval and the governor's budget stays intact, Fresno Unified's projected deficit of $27 million could be reduced by $8 million to $10 million.

School districts statewide have looked at early-retirement incentives. Fresno Unified officials, for example, studied costs through a state plan under Assembly Bill 1207 for teachers at or near retirement. Districts could offer teachers one approach that added two years of service to their tenure, or consider coupling that service addition with two years of age credit. Fresno Unified officials determined that both options would be too expensive, and those figures didn't include making similar offers to non-teaching employees and certificated managers.

The district then looked at a private plan for all employees. District officials ran a calculation based on retirees of 223 teachers, 44 administrators and 100 nonteaching workers. The total cost for those 367 people would be $4.1 million, adding about $800,000 more per year in the district's budget for five years.

In addition, district officials have said health-benefit costs will climb again, by 15% per year, starting July 1.

Trustee Richard Johanson said after the special meeting that he was "disappointed" the district can't offer employees the incentive, but the district's projected deficit and uncertainty over the state budget won't allow it right now.

Sherry Wood, president of Fresno Teachers Association, said she also was disappointed: "For the district not to pursue that ... just to offer it to see what kind of response they would get, I question why they wouldn't do that."

Hoover High teacher John Proudian shared calculations he had run, based on 93 teachers who are 60 or older and have 30 years or more of service. His figures showed Fresno Unified could save money.

In another matter, the trustees unanimously approved a resolution supporting Proposition 55, a $12.3 billion state bond measure on the March 2 ballot to build new schools and repair existing campuses. Fresno Unified School District could receive between $70 million to $130 million if it passes.