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MARS Board Meeting MinutesMassachusetts Association of Regional Schools Board of Directors and Membership Meeting April 14, 2009 Minutes
1. Welcome and Introductions Members completed the sign in sheet and the sign in sheet is attached to the official minutes. The Executive Director indicated to the membership that packets for the meeting are available at the front door to the meeting room. 2. Approval of March 10,2009 minutes A motion was made by Mike Zapantis and 2nd Bruce Kaiser to approve the minutes of March 10, 2009. It was so voted. 3. MARS Banner The newly proposed MARS banner has generated a high level of discussion, particularly on the symbolism of the tree of knowledge. The cost of the banner is $250.00 with the color being blue on white a background. A motion was made and seconded to approve the proposed MARS Banner. The motion passed unanimously. 4. Appointment of nominating committee (3) for Officers and Board of Director (2009-2010) The Nominating Committee, as appointed by the President, has the obligation to determine a slate of officers for the upcoming term. Letters of interest can be emailed to one of the members of the Nominating Committee or Steve Hemman directly. The MARS Bylaws were included in today’s packet. The nominating committee will present a slate of officers at the Annual Meeting on June 9, 2009 Nominating Committee: Mike Zapantis, Superintendent Ashburnham-Westminster Cliff Fountain, School Committee, Quaboag Regional School District Cheryl Duval, Business Manager, Quabbin Regional School District 5. FY2010 Budget and Federal Stimulus update The Executive Director and Joe Giannino met with Representative Walz and discussed using House 1 Chapter 70 numbers in developing budgets. Rep Walsh’s comment was that those figures are now 60 days old… Representative Haddad’s comments lead people to believe that Chapter 70 may be cut in the House Ways & Means budget due out tomorrow at 11:00. When Christine Lynch of DESE was asked if the department (Roger Hatch) had been asked to compute any scenarios, Chris noted that the House Ways & Means will run their own numbers. Tri County is going to certify their budget tomorrow and they are concerned about regional transportation reimbursement amount from the State. Executive Director Hemman stated that it may well be June to July before we really know the final level of funding to school districts Regarding the Regional Transportation reimbursement (Chapter 71) – Representative Walz understands clearly how this impacts towns in a region. Joe Giannino will look to see if Ch70 -71 is cut disproportionately – then we, as a group would express a strong concern and request that funding be restored to a certain level. Pension reform – received information today and Executive Director Hemman will send it out to all member Business Managers & School Committees, along with Superintendents by email. The major change in the reform is to Superintendents and Business Managers who have payments to annuities in their contract. The reform would negate the annuity as a portion of salary calculation. Stay tuned – Tom Scott and Joe Giannino are talking about this with legislators. Questions discussed: Going forward in contracts, what should you do? If you leave to go to another district will it be considered a new contract? MASS is advising not to include annuities in contracts going forward. Paul Gagliarducci remarked that this may cause accelerating retirements. MASS is telling legislative groups that they may count on 40 additional retirements now if you tinker with the retirement calculation. This reform will throw monkey wrench into system already in crisis. There is currently approximately a total of around 40 Superintendents retiring this year. The legislators are not in tune to what this type of reform will do to education. The discussion turned to Regional and Union Superintendents in that there may be efforts to deny collecting retirement from 2 different entities. –Technically, Union Superintendents are working for 2 entities. Executive Director Hemman reviewed information he has gathered from meetings he has attended relative to the Governor and his authority over Stimulus funding. The Governor has authority not the House and Senate, which upsets the legislature.
A reminder - Stabilization funding is not free and clear, there are strings attached. It should not be considered “bailout money”. Districts must use 50% for initiatives and investment, not only for operational expenditures. 6. Standing Committees a. Laws and Regulations 1. MARS’s position on the DESE proposed regulation change on Budget 2. Position of MARS on the Haddad Proposed legislation 3. Status on Proposed legislation for 2009-2010 4. Executive Director’s meeting with Education Chair-March 31, 2009 This new legislation has come about due to some District’s having difficulty with getting Selectmen to call another town meeting if the budget fails. The new proposed regulations, as drafted by Jeff Wulfson, Associate Commissioner, state if assessment voted at that town meeting is lower than the assessment set by the school district treasurer, the school committee may vote to reduce the budget to equal that lower assessment and the district treasurer certifies that amount – if a town meeting is not called within 45 days – that will be a YES vote to approve the budget. Not holding a town meeting used to be considered a NO vote. There was disagreement with town not being able to set a number – only can vote the assessment up or down – then go back to the town with a lower number. Chris Lynch stated that by law, the town votes up or down, but town can vote on any number, and School Committee can disregard that number, but take it into account in changes made to the budget. Take into consideration past practice but School Committee can’t force a town to call a town meeting. This holds the Region hostage and this is the reason for the reversal of DESE regulation. No town meeting within 45 days is a YES vote. This is a change in regulation, not the law. This will be the same with use of E&D –during the year – if town doesn’t call a town meeting, it will be a YES vote, and used to be a NO vote. Haddad Proposal Proposal re: DESE could force supervisory unions to be formed – MARS not in favor. Proposed taking look at new regions –MARS would like to be part of this. MARS Website lists every proposed law change going to Education Committee and it was suggested that members might want to review the list. MARS will be working with Joe Giannino on these going forward.
The membership was advised of a bill to keep kids in school - to revamp expulsion process – being promoted by Civil liberties Union – takes Superintendent control away, puts limits on # of days for expulsion, forces principal to submit to dept a report on why student was expelled. This forces Superintendents to meet with parents at an accelerated time table. This bill covers alcohol, weapons, threats on teachers, etc. Paul Gagliarducci will get the Bill # out to MARS members b. Insurances—Health and General Insurance—Bruce Kaiser The Standing Committee will be providing the Membership with information on GIC at today’s meeting.
c. Budget
d. Grants 1. Central Office Study Executive Director Hemman is working with Associate Commissioner Jeff Wulfson and Sara Carlton (Accountability and Targeted Assistance office) on this Central Office Study. There are 6 people involved in working on grant. Executive Director Hemman showed the spreadsheet that will be used to collect data. Personnel data is taken from EPIMS which is on the vertical axis with the functions shown on the horizontal. A #1 is primary responsibility for each area - #2 is an secondary responsibility. This grant will look at regions now, but will also take a look at the municipal central offices. Secretary Paul Reville has been talking about Central Office capacity – first talking about savings funds and now is focused on capacity. Discussion took place on what is going to happen with information. 2. George Ladd Grants Grants are available and will pay up to 60% of costs to work with districts.
e. Professional Development—Barbara Ripa 1. Program for new Superintendents 2. Future programs for MARS This newly formed Subcommittee was formed to provide professional development for new Regional Superintendents: new Superintendent or new regional Superintendent. The Subcommittee’s mission in not to step on MASS toes, but to continue open discussion, to meet with new regional Superintendents, and to provide assistance on what happens during the year, to help new Superintendent stay ahead of the game. This is a real need for new superintendents in regions.
The MARS organization is working on getting the designation of a professional development provider. DESE – Chris Lynch state that there will be a session at the annual MASBO meeting that both Chris and Bruce Kaiser are working on. The session deals with what regional school districts need to do that a municipal district doesn’t need to do. The focus is for a Business Manager but may be helpful for Superintendents as well to attend. There will be a product. – a manual given to attendees. May 13, Weds – 1:30 – 4:30. The manual will be available on the MASBO website and MARS website. f. School Building---MSBA 1. Meeting on March 25, 2009 2. Proposed Law –add regions to current law for bonding 25 years 3. Regional Taskforce Meeting—April 29, 2009 Chapter 70b allows only cities and towns to bond for 25 years. MARS is proposing language to add regional school districts and MSBA on board with this proposal. There will be a meeting of the MSBA Regional Taskforce on April 29, 2009 at 2:00pm. Steve Hemman and J.D. LaRock will be presenting information on regionalization, consolidations and collaboration. MSBA gives 6 points reimbursement when towns form a new region. Berkeley and Somerset – MSBA voted to give 6% points to towns but unknown how towns responded. Dr. Michael Zapantis had sent a letter re: those who are already in region as to why there are no points for those already regionalized.
g. Regionalization 1. Meeting on March 19, 2009 and April 2,2009 2. MARS’s position on issues 3. Response to the Globe article The agenda’s from the Standing Committee are in the meeting packet. There have not been responses to the Globe article on regionalization issues. MARS has concerns about the governance in supervisory unions. See the packet for more information. If regions want to become larger but retain local controls there are ideas of how to accomplish that. Reexamine how autonomy stays local and delegate upward. Some schools in Franklin County are looking at how to get big without sacrificing programs and autonomy.
7. Presentation on GIC—Standing Committee GIC (Group Insurance Commission) Option There may be a lot of issues – lots of districts are investigating joining the GIC. Dr. Ralph Hicks – Spencer-East Brookfield This region’s dilemma was increased health insurance costs with 2 major carriers. This district has a named carrier in bargaining unit agreements - Fallon & Cigna. Less than 100 members in Fallon – 10 =/-% - 10.9% for FY09 Cigna has majority of employees – experienced a 23.6% increase this year - 28.4% for FY10 – 140 employees. Dr. Hicks believes Cigna is trying to wiggle its way out of MA and using these increases as a way to do it. Catastrophic illnesses are the major cause of high increases. Spencer-East Brookfield was paying 90% of a POS Plan, but did get teachers to agree to 85% with new employees at 75% contribution, against MTA advice. Superintendent decided to look at GIC - Representatives had a meeting with CIG to talk about joining. Pros & Cons PROS – insurance cost at average of 13% per year across the state; it is 3.19% at GIC. There is strength in numbers – catastrophic illness effect total group differently. Unions must be at the table at a 70% vote currently. Getting this passed is difficult. Spencer-East Brookfield is in year 2 of 3 year contract and teachers refer to contract language naming the provider. Teachers are, however, willing to discuss this in next bargaining session for next contract. Entry point into the GIC is July, but a district must notify the GIC by October 1 of year before. Co-pay structures are different than those of traditional plans and once a district joins the GIC it no longer has a say over co-pays. Some are significantly higher than current provider. Currently, the district has control over negotiating co-pays with the provider as a way to reduce premium costs. Be aware of red flags. Spencer-East Brookfield contracts with Group Benefit Strategies as its health insurance broker/consultant and have been told that the current 20 hrs per week for eligibility in the district’s current plan drops to 18 ½ hrs per week for eligibility in the GIC plan. This may lead to more employees on the plan = more cost to the district.
Long term substitutes - after 4 months are eligible for health insurance in GIC. In many districts, long-term substitutes are not eligible for health insurance. In the GIC there is a 60 day waiting period after hiring. Most districts cover employees the day of hiring. This waiting period may be a problem for some new employees. It has been determined that a district cannot offer mitigation money. Retirees currently in GIC – if only retirees – 90% is contribution – if employees join GIC retirees DROP to current employee rates. Fact: The GIC currently has a $50million deficit. This deficit must be made up somehow in the future – perhaps rates. The bottom line – it’s worth looking at, but it is worth your time, energy and investment to use your consultant. It is going to be a hard sell for unions. Ken Rocke, Gill-Montague Interim Superintendent had a different experience – by increasing the contribution rate to 90%, a majority of the employees migrated to cheapest plan. Began discussion 1 ½ years ago- entered July 1 2008 – had self-insured group prior to that with 18% per year increases. Gill-Montague’s process: Rate calculation comparison Estimated costs with interest based bargaining Key to negotiation was savings for employees Increased district % on HMO plan 60 day limit – made employees whole in first 60 days with COBRA payments Got rebate from BCBS - $400,000 back because one month paid in advance Some districts within the self-insured plan went to another self-insured plan Employees experienced higher Co-pays and higher plan costs but made whole with higher district contribution. GIC offers – Fallon direct care and Select, Harvard Pilgrim, Health NE, Navigator Tufts, NHP, several Unicare plans. Once a district joins the GIC, it is in for 3 years. GIC doesn’t track individual school district costs and savings. WHY? This is a concern if a district chooses to come out it won’t have the history of your participants to give to the new provider bidders.
Executive Director Hemman says he’s heard they will track but may not release that information. Pat Meagher – Business Manager- Southeastern Vocational If investigating health insurance options, look at trusts. Alternative – Plymouth County Health Trust Joint purchasing arrangement 1500 people big enough to be able to distribute costs but small enough to control Board of directors – well run group More control, more flexibility 3 principles – like experience factors, experience less than premiums paid ¾ m in surplus Geographic commonality – not using expensive teaching hospitals Eliminated indemnity plan – Plymouth County reduced contribution to 50% Gateway group – couldn’t get master medical to BCBS anymore – only grandfathered participants – had over 80 employees on Master Medical Rates 10% less than the rates in the self-insured group are now. $2m total cost of current and retired employees. Saved $300,000 from PC group Some other groups have approached Gateway Group – but composition hasn’t changed from original group – take a look at those wishing to join to match to the group – if adverse experience rates – not allowing to join – don’t want an adverse change to group. Compared to GIC – no direct comparison – GIC doesn’t have BCBS – giant difference in co-pay structure GIC keeps rates down by manipulating co-pay structures
8. Presentation on Medicaid—New England Billing-Jennifer White
Who does medical billing now? We all do. Lot of changes this year and last October – stopped doing the time study. This took away the ability to claim what is actually done in your district and stuck all of us together – took all data and – lottery – pullout participants for a specific point in time, just one moment in time. Compile data for all those in time – map codes to each district’s answers. In the random moment survey, you have 120 hrs – 5 days including Saturday & Sunday or you are penalized for not participating. Emails from schoolbasedclaiming.umass – answers those emails timely. Random time study is just coming in – the state gets ½ of the federal program funding – who’s driving the reimbursement down – the federal government. You are reimbursed for a state average and not the districts actual costs. There have been a few months already done and schools are well trained on how to respond to the study. Revenue will be going down for administrative activity. Random moment time studies will be used for direct services next year. Fee for service – next year, FY10, documentation must be filed for each student and based on this documentation services are billed at Medicaid rates for those services provided. Currently a district can go back 2 years for a claim – now only 90 days to bill those services. Changes to revenue? Right now a district is reimbursed for every day a student is in school with a minimum of at least $1,000. With the new changes, only actual medical services provided may be reimbursed. There will also be changes to administrative claiming and reimbursement depends on the random moment time studies. District will have to do a random moment time study for both administrative and direct service claims. Documentation will be the same that you’ve been using – get from your billing service. Only certain services can be billed for - NOT ABAs. There was a question and answer period after which Jennifer was thanked for her presentation by President Marshall.
9. Presentation on Performance Contracting—Richard Lane, Supt of Schools, Franklin County Vocational
Supt. Lane presented the Membership with a PowerPoint presentation on Performance Contracting. Also present were representatives from Siemens Corporation. The PowerPoint will be emailed out to all members.
Information: 1. Board of Education Meeting March 24,2009 Agenda 2. Suburban Coalition 3. Franklin County
Next Meeting: Board meeting only May 12, 2009 10:00 am Assabet Annual Meeting June 9, 2009 10:00 am Assabet The meeting was adjourned at 12:20 pm. Submitted by,
Cheryl Duval, MARS Director And Steve Hemman, Executive Director
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