UPDATED 2-21-2012
Apparently the Illinois State Board of Education has ruled on this matter. See below:
Click on the photocopy to enlarge:
![image_thumb[8] image_thumb[8]](http://lh3.ggpht.com/-mHotJzblbN8/T0PV8P9_1HI/AAAAAAAAFlU/VmVuQFuORdE/image_thumb%25255B8%25255D_thumb%25255B6%25255D.png?imgmax=800)
page 5 of the document shown above indicates that retirement incentives are allowed.
![image_thumb[16] image_thumb[16]](http://lh3.ggpht.com/-Fj1DnHdqdNo/T0PV9IjbRzI/AAAAAAAAFlk/w2utQGWMW_o/image_thumb%25255B16%25255D_thumb.png?imgmax=800)
Using the reference immediately above( http://www2.ed.gov/programs/educationjobsfund/applicant.html)and downloading the specific document named-- page 3—the following items are found—I have provided the highlighting.

C-3. May an Insular Area use Ed Jobs funds to make payments into a “rainy day fund” or for debt reduction?
No. An Insular Area may not use program funds, directly or indirectly, to establish, restore, or supplement a rainy day fund, or to supplant non-Federal funds in a manner that has this effect. Furthermore, an Insular Area may not use program funds, directly or indirectly, to reduce or retire debt obligations incurred by the Insular Area or to supplant non-Federal funds in a manner that has this effect.
C-4. What categories of expenses may an Insular Area support with Ed Jobs funds?
For purposes of this program, the phrase “compensation and benefits and other expenses, such as support services” includes, among other things, salaries, performance bonuses, health insurance, retirement benefits, incentives for early retirement, pension fund contributions, tuition reimbursement, student loan repayment assistance, transportation subsidies, and reimbursement for childcare expenses.
So as long as C-3 is not occurring, it would appear early retirement incentives (C-4) are allowed.
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Posting “before update” follows:
The primary objective for ARRA was to save and create jobs almost immediately. Secondary objectives were to provide temporary relief programs for those most impacted by the recession and invest in infrastructure, education, health, and ‘green’ energy. (Wikipedia: http://en.wikipedia.org/wiki/American_Recovery_and_Reinvestment_Act_of_2009)
As shown by letter shown below, the proposed action of the Board of Education, for Tuesday February 21, would use ARRA funds for large bonuses for staff that retire next year. The amount for a teacher with 30 years of teaching at a Belvidere school would be $40,000 ($10,000 + 30X$1,000) plus 5% of their salary from the prior year. And of course the teacher would also receive their teacher’s pension.
The District indicates that they are going to save $1,500,000—is that making the assumption that many of these retirement age teachers are only going to take the retirement because of the incentive? Are not administrators also subject to the incentive—would there be any savings there?
How many dollars of ARRA funds are going to be use? Belvidere has only one school making mandated annual yearly progress. Is this going to help the district educationally? Are any jobs being saved or created?
I do not recall any such massive bonuses for retirement (except for administrators). Is this just because the money is from ARRA rather than local tax dollars?
Click on the photocopy to enlarge:
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The above proposed action is from the school documents: http://www.boarddocs.com/il/district100/Board.nsf/files/8RJRYS6F92B5/$file/retirement%20incentive%202-21-12.pdf
The school district posted this information only on Friday—so very few citizens have seen this. I have many questions and probably will be receive few answers.
Tuesday the Board or Education will be voting on this issue. Monday is a school holiday. Your school board members are shown below:

Richard Van Evera
President
11676 Inverway
Belvidere, Illinois 61008
(815) 885-3942
Term Expires: 2013

Doug Smiley
Vice President
11101 Covington Place
Belvidere, Illinois 61008
(815) 885-9100
Term Expires: 2013

Julia Norem
Secretary
10762 Shaw Road
Rockford, Illinois 61114
(815) 885-3741
Term Expires: 2013

Darrell Fox
1477 Cummings Road
Caledonia, Illinois 61011
(815) 621-3508
Term Expires: 2013

John Powell
1615 Cloverdale Way
Belvidere, Illinois 61008
(815) 547-1834
Term Expires: 2015
Mike Rathbun
313 Briarwood Drive
Poplar Grove, Illinois 61065
(815) 547-8925
Term Expires: 2015
Dan Wilson
1815 Candlewick Drive, S.W.
Poplar Grove, Illinois 61065
(815) 765-5115
Term Expires: 2015