Insurance rate hike wallops 257

By

News

May 25, 2011 - 12:00 AM

An unexpected and shocking 27 percent increase in health insurance premiums has created a budget nightmare for the USD 257 Board of Education.
Just as Superintendent Craig Neuenswander thought he’d solved the district’s budget woes in the face of state cutbacks on Monday morning, in walked the representative from Preferred Health Systems Inc., of Wichita, with the proposed rate increase for the district’s employee health insurance plan for the coming year.
Clearly perplexed, Neuenswander delivered the bad news during the board’s regular meeting Monday evening, in which the full board was present and about 20 others attended.
“At the last meeting, I smarted off about how I could find the $9,000 difference we needed to balance our budget, and I did that,” he said. “Before today, we were $13,000 to the good.
“Now… we’re not.”
The proposed premium increase would add $254,343 to the district’s cost of insuring 89 teachers and 108 administrative and classified employees. The total health insurance bill for the district would increase from $937,491 to $1,191,834. The district currently pays the single premium cost. Single coverage costs alone would increase from $396.57 per month to $504.16.
The rate hike comes after several years of relative calm on the health insurance front, with no increase incurred last year and inflationary adjustments in the few years before. Neuenswander acknowledged that several major health-related claims had been incurred by employees or dependents this past year, however.
While some rate increase was anticipated, he confessed, this much was a big surprise.
After catching its breath, a dazed board instructed Neuenswander to seek a second opinion — in the form of competitive bids from other health insurance companies. The district’s health insurance committee will evaluate alternatives and make a recommendation at a later date.
Meanwhile, the battle to balance next year’s budget continues. With the new cost of health insurance factored in, shortfall is $712,652. That decreases to $156,625 when previously considered cuts and use of $200,000 from the contingency reserve fund are brought to play.
“Basically, what I’m here to tell you is that we can come up with the additional funds needed to balance the budget,” Neuenswander added. “I’m not sure we’ll like any of the ways we can do it, raising mill levies, moving to a less-effective health insurance plan, perhaps reducing staff. None of those are very attractive options, but it can be done.
“I’m not ready to stand here tonight and say this is an approach we’re ready to take. But this gives an idea of what’s in front of us and some of the options we need to consider.”
Beyond the health insurance increase, the superintendent reminded the board that the biggest budget-buster so far had come from the loss of state funding, which was cut by $432,609.
“And that’s what really hurts,” he said.
The meeting had begun on a much happier note as Becky Carlson, physical education instructor, and Travis Hermstein, social studies instructor, were recognized by the board as the district’s Elementary and Secondary Teachers of the Year.
The board also listened to a well-orchestrated appeal from two senior band members, Audrey Payne and Michelle Cameron, seeking its blessing to begin a massive fundraising effort for a proposed field trip to New York City May 23-June 4, 2012.
About 50 band members and 10 adults would make the trip, if $30,000 can be raised.
Buck Quincy joined the other board members in wishing the band good luck in its efforts, but added that there would be no school funds available should they fall short of their goal.

SCOTT STANLEY, director of operations, said the actual bids for six maintenance projects planned for this summer had come in at $131,369, much lower than the projected $205,437.
After some discussion, the board voted to resurface the running track ($19,900); repair concrete in high school parking areas ($46,044); install durable epoxy floor coating in the hallways at the high school ($14,500); repair leaky roofs on district buildings ($31,960); and replace the musty carpet in a kindergarten room at Jefferson Elementary ($5,313).
It took two votes for the board to decide which business to favor for new entry doors to the high school. The low bid, $13,651, was offered by Jayhawk Glass of Chanute. Iola Glass offered a bid of $16,848.
Board members Quincy and Darrel Catron moved and seconded a motion to award the job to the local “taxpaying” business, Iola Glass, but it was defeated, 2-5. A second motion, to accept the lowest bid from Jayhawk Glass, was made by Tony Leavitt and passed 5-2.
The board met in executive session for about 20 minutes to discuss matters related to teacher negotiations, nonelected personnel and the purchase of real property.
Upon its return, the board accepted the resignations of the following teachers: Ron Schomaker, middle school language arts and wrestling coach; Jennifer Jones, high school speech and drama; and Larry Lillard, middle school and high school band.
The following teachers were hired for the high school summer session: Virginia Crane, Jodi Grover, Travis Hermstein, Deena Powelson, Sandra Scoggin, and Amanda Thompson.
Jump Start Teachers (Elementary Summer School): Linda Brunetti, Laura Caillouet-Weiner, Nancy Cokely, Loretta Ellis, Kelly Francis, Sandi Hermstein, Linda Johnson, Angie Linn, and Tammy Prather. Summer Weight Room Supervisor: Bill Peeper.
In other business:
As an experiment, the board agreed with the superintendent’s plan to allow classified staff members to voluntarily work four 10-hour days this summer instead of five eight-hour days. Maintenence crews can get more accomplished during a longer work day, he said. Some staff will also be working on Fridays to accommodate shipments and deliveries to the buildings, he added.
The board began to discuss but, in light of pressing budget concerns, tabled further action on a proposed comprehensive review of the Crossoads Alternative Education Program, meaning the program will remain as-is for the coming school year.
The superintendent shared results from the recent regional Community Conversation sponsored by the Kansas Association of School Boards (KASB) and hosted by the three school districts in Allen County. While the turnout was small and limited primarily to board members and school employees, there is still food for thought within the comments, he said.
The superintendent also presented “A not-so brief review” of education issues from the just completed legislative session, prepared by the KASB.
In a prepared statement in the agenda packet, he wrote, “One editorial comment on my part: It became clear that a number of legislative issues were discussed this year with an eye toward future elections. Board members, staff, patrons and others who believe in the importance of public education will need to make sure their messages are heard until the next election.”

Related
June 28, 2011
May 18, 2010
May 13, 2010
March 3, 2010