Sunday, March 24, 2013

S1191/A3960 - Establishment of more county-wide control in the area of school district services


This is a great case of where select individuals in the Assembly and Senate have an extreme disconnect from the actual operations of a school district and the ability of management in this cases School Business Administrators in partnership with Boards of Education to effectively oversee and administer services in a fiscally responsive manner providing cost savings to resident tax payers.

S1191/A3960 - Establishment more county-wide control in the area of school district services

03/21/2013 Received in Assembly and referred to Assembly Education Committee.  THIS BILL WILL HAVE A SIGNIFICANT IMPACT ON SCHOOL DISTRICTS.  YOU ARE URGED TO CONTACT YOUR ASSEMBLY REPRESENTATIVES AND INDICATE THAT YOU OPPOSE THIS LEGISLATION.

 SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 1191

STATE OF NEW JERSEY

DATED:  MARCH 4, 2013

       The Senate Budget and Appropriations Committee reports favorably a Senate Committee Substitute for Senate Bill No. 1191.

      This substitute bill permits counties to establish a county-wide purchasing system to provide custodial or food services, or both, to school districts within the county. This simply grows county government which in some counties has proven ineffective in their ability to maintain tax stability and more importantly decrease taxes through reductions in spending.   These contracts would be awarded to contractors using the competitive contracting process set forth in the “Local Public Contracts Law,” P.L.1971, c.198 (C.40A:11-1 et seq.).  If a county establishes a county-wide purchasing system and a school district in the county is currently using a private contractor for the service, the district will be required to participate in the county-wide contract.This position eliminates the board’s ability to consider alternative service selection based on other criteria beyond price alone.  Where district’s are currently and effectively operating within a profit margin beyond break-even it usurps the rights of management to evaluate continuation of the existing company or consider going out to look at the market through a competitive request for proposal (RFP) or public bid.  The county established program should be a viable consideration amongst other companies, thereby preserving the best price and service through fair and open competition.
 

      (1)  providing written notice to the majority representative of employees in each collective bargaining unit affected by participation in the county-wide contract and to the New Jersey Public Employment Relations Commission; and


Each employee replaced or displaced as a result of the district’s participation in the county-wide contract would retain all previously acquired seniority and would have recall rights whenever the district’s participation in the county-wide contract terminates.

      Any administrator whose position is eliminated due to a countywide purchasing system will receive terminal leave pay pursuant to N.J.S.A.40A:65-19 of the "Uniform Shared Services and Consolidation Act."

      The substitute also provides protection for food or custodial services employees employed on school district premises during a transition to employment by a successor contractor, which is defined in the substitute as a contractor that has been awarded a food or custodial services contract.  Under the provisions of the substitute, a successor contractor must offer employment during a 90-day transition employment period to all service employees providing food or custodial services employed by the predecessor employer, whether that predecessor employer is a school district or another contractor providing food or custodial services for the school district. The successor contractor is prohibited from discharging, without just cause, a retained employee during that transition period, and must perform a written performance evaluation for each retained employee at the end of the transition period. In many cases this is the reason for considering the outsourcing in order to separate ineffective employees from the district.

 Employees whose performance was satisfactory, must be offered continued employment by the successor contractor.  This provision would apply in the case of participation in a county-wide contract for food or custodial services, in the case of a district privatizing these services, or in the case of a change from one private contractor to another private contractor for these services.

      The substitute includes a provision that applies to all subcontracting by any of the following employers: any local or regional school district, educational services commission, jointure commission, county special services school district, county college, State college, public college or university under the authority of the Secretary of Higher Education, or board or commission under the authority of the Commissioner of Education or the State Board of Education.  Under this provision, during the term of an existing collective bargaining agreement covering its employees, the employer is prohibited from entering into a subcontracting agreement which affects the employment of those employees.  Following the term of a collective bargaining agreement, the employer is permitted to enter into a subcontracting agreement only if the employer provides similar notice and opportunity to negotiate over the impact of the subcontracting agreement as described above in relation to the decision by a school district to participate in a county-wide contract.  As in that case, each employee replaced or displaced because of a subcontracting agreement would retain all previously acquired seniority and would have recall rights when the subcontracting terminates.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.  This may be the case; however, it will have a sever negative fiscal impact on districts who are currently managing these services effectively and at a cost savings with the outside companies.

Thursday, March 21, 2013

Senate Approves Subcontracting, Arbitration Bills

As reported by New Jersey School Boards - The following legislation hampers district's ability at the table as it weakens the bargaining process for management as leverage taken away with respect to cost containment in salary and other terms and conditions of the contract that permit sustained continuation of employment for select groups.  I for one have never been a strong proponent of outsourcing with respect to custodial/maintenance operations; however as the Chief Financial Officer for the district, often I state the obvious when dealing with represented groups, "Do not price yourself out of a job!" 

Absent the ability to subcontract or outsource at will, district's loose a credible option and key bargaining chip at the table. 


http://www.njsba.org/news/sbn/20130319/senate-approves-subcontracting-arbitration-bills.php


The state Senate on Monday passed by a 22-15 vote a bill that would limit the ability of school districts and higher education institutions to enter into subcontracting agreements for services such as busing, custodial or cafeteria services.
The bill, S-1191, would make subcontracting much more difficult by making such decisions a mandatory subject of negotiations. The bill also places significant obstacles in front of school boards that have not yet subcontracted services, but desire to do so.
S-1191 would impose onerous, pro-union requirements such as extensive notice and comment periods, as well as transitional employment for affected employees, which appear intended to preclude school districts from privatizing food or custodial services altogether, regardless of whether such a decision makes sense from a managerial or fiscal standpoint.
NJSBA opposes the bill. In 2009, the Association performed a survey into subcontracting. Approximately 40 percent of school districts responded, reporting savings through subcontracting that totaled at least $34.3 million annually.
Sample Resolution Available NJSBA has created a sample resolution that boards can adopt to demonstrate their opposition to the bill. NJSBA’s position statement on the legislation contains additional information.

Sunday, February 3, 2013

The Affordable Care Act's Impact on Education

After just attending a seminar on the “Affordable Care Act” provided by Brown and Brown Insurance, I walked out with more questions than answers… not because of the presentation and material covered, that was top notch quality time well spent; but because of the sheer volume and speculation of how the government’s massive entitlement program will eventually change the landscape of Health Insurance offerings for school districts and where we fall relative to the implementation timelines and penalties.

The best line of the morning was, “The Affordable Care Act is not Health Care reform… it is Health Care Insurance Reform” and that reform is more mandates that fall on the shoulders of business to include schools.  Worse yet it will eventually force unpopular staffing decisions that will have adverse income effects on hourly workers leading to potential cutting of hours, reductions in force and or outsourcing.

According to the Whitehouse, “The Patient Protection and Affordable Care Act (Affordable Care Act or ACA) enacted comprehensive health insurance reforms designed to ensure Americans have access to quality, affordable health insurance.” 

How this plays out remains to be seen; however, one inescapable fact remains…. It’s coming and we better prepare for change as we as School Business Administrators like all other business leaders in all sectors of the market will be responsible for implementing, overseeing and managing that change.

While the information and components of the program are sizable, I have attached links to sites through my own research on the topic designed to help guide us through the process.  Absent the presentation provided by Louis Della Penna Jr., Executive Vice President of Brown & Brown Benefit Advisors, Inc., Lambertville, NJ, we would again be heading into the change with little to no guidance from the creators and enforcers of the plan… government albeit web information.

Key Features of the Law

The health care law offers clear choices for consumers and provides new ways to hold insurance companies accountable. The most important parts of the law are broken into groups below. We’ll highlight new features of the law here as they roll out between now and 2014.


Key Provisions of the Affordable Care Act


The Affordable Care Act includes a variety of measures specifically for small businesses that help lower premium cost growth and increase access to quality, affordable health insurance. Depending on whether you are self-employed, an employer with fewer than 25 employees, an employer with fewer than 50 employees, or an employer with 50 or more employees, different provisions of the Affordable Care Act may apply to you. Learn about the key provisions of the Affordable Care Act based on the size of your business below.

Employers with 50 or More Employees


Key Provisions Under the Affordable Care Act for Employers with 50 or More Employees

Implementation of the Affordable Care Act occurs in stages, with many of the reforms and requirements taking effect in 2013 and 2014. Some of the provisions that may impact employers with 50 or more employees include:


 

What Is a Health Exchange?

Learn How Health Exchanges in Your State May Affect You

From Michael Bihari, MD, former About.com Guide

Updated April 04, 2010

A health exchange will be created in each state by 2014. The health reform legislation (Patient Protection and Affordable Care Act) signed into law in March 2010 by President Obama creates state-based health insurance exchanges. States can choose to operate their own exchanges or participate in a multi-state exchange.
Summary of Potential Employer Penalties

Under the Patient Protection and Affordable
Care Act (PPACA)
 

http://www.ncsl.org/documents/health/EmployerPenalties.pdf

Monday, January 28, 2013

iPads.... The Cost of Adding The Next Big Thing

Back in May I published a quick article on my Blog about the newest push in adding technology to the classroom... the iPad.  While discussions were taking place across the country and perhaps throughout the world in advanced countries the predominate argument was on the value or perceived value with respect to delivery of instruction and value add in addressing the curriculum content standards at all levels.  Absent that discussion was the associated costs of personnel to support and maintain such a roll out depending on the scale and overall cost of the plan.

Specifically, the aggregate expenditure associated with a comprehensive plan to modernize the classroom phenom.  As reported, "Schools across the nation are reaching for the iPad as the next big thing in classroom technology by equipping students with an interactive way to learn by instantly accessing information through apps and interactive tools."

With respect to the actual investment, roughly $500 - $550 per unit comes the cost of adding additional staff or redirecting existing staff to set up, program, maintain and repair.  This comes in the form of either a new technician(s) and or computer teacher(s).

Case in point:

The 2013-2014 Technology budget for our district included 700 new iPads to introduce 2 grades per year (grades 3 & 6, the following two years the installation plan would continue at grades 3 & 6 until the 2015-2016 school year that would yield iPads for all students from grades 3 to 8.  This would bring the total count to approximately 2,100 iPads to maintain with the added cost of recycling the first issue the following year.  Another concern becomes what happens as the first group of eighth grades exit the middle school:  Do they continue the knowledge and use of iPads into their secondary experience?
 
Some district's jumped out in front with a large purchases absent a planned infrastructure (network) upgrade to accommodate and operate the units at maximum efficiency.  The end result is teachers left with the inability to perform basic online tasks because their wireless network is overwhelmed with the large number of additional devices.  This diminishes or wipes out the return on investment leaving students with worthless units.    
 
In the words of one Director of Technology, "We're able to do what we do now just barely because of our ability to remote in; however with the iPads, we do not have that ability and therefore require staff at each location or increase wait times as techs would need to be dispatched."  "Just to get them on the wireless network, we have to take each unit one at a time to put on the network through settings."

Without adequate staff the initiative could stall or become less productive or unsuccessful.
 
If you put a new initiative out there that can not be properly supported, not only will it fail; it will have a detrimental and have lasting negative effect on the entire technology plan.

Tuesday, January 1, 2013

Class Size Falling Victim to Shrinking Budgets

School classes grow as funding shrinks

Clark High School teacher Nat Player has 39 students crowded into one of his Advanced Placement psychology courses. Photo: Helen L. Montoya, San Antonio Express-News / ©SAN ANTONIO EXPRESS-NEWS
  • Clark High School teacher Nat Player has 39 students crowded into one
  • of his Advanced Placement psychology courses.
    Photo: Helen L. Montoya, San Antonio Express-News /
  • ©SAN ANTONIO EXPRESS-NEWS

  • As budgets continue to be pressured with the desire to hold or even reduce taxes through CAPS on tax levys the unmistakable reality is savings from efficiencies and innovative cost containment strategies are finite.  What most people fail to realize is that the tax levy is impacted not only by changes in expense but also changes in revenues.  With state aid continuing to diminish at a rapid rate the effect on tax levy is clear:  it rises!  As this rise in tax levy is either not permitted or curtailed, the only result is to eliminate program or increase class size.  This is far from the days of Class Size Reduction aid which acknowledged the need for smaller groups to increase student/teacher interaction.  This article which appeared in the San Antonio Express demonstrates the turning tides in the fight to retain quality programs amidst shrinking funding: 
    Clark High School teacher Nat Player is getting used to it.
    The psychology teacher has one of the largest classes in Northside Independent School District, with 39 students taking one of his Advanced Placement courses. He has more work to grade and he can't use all the whiteboard — their desks block access to it.
    But what worries him most is losing the ability to focus on each of them.
    “It's just easier for kids to fall through the cracks, I think,” Player said. “I enjoy being able to get to know the students and better keep an eye on (them) if they need help or some attention, either with homework or just needing someone to talk to.”
    In his 16 years at Clark, he has seen class sizes balloon, and the trend is accelerating. Students regularly haul desks from down the hallway into a French II class so they all can fit in, then take them back out for a smaller subsequent class.
    Northside's predicament mirrors that of several other local districts with expanding enrollments. It's part of the argument hundreds of Texas districts are making in an ongoing school finance lawsuit against the state, blaming lawmakers for a funding scheme that doesn't keep up with growth.

    Friday, December 21, 2012

    Resources for schools to prepare for and recover from crisis

    Resources for schools to prepare for and recover from crisis

    FEMA Institute Emmitsburg, MD - District Officials received current safety/security training on Multi-Hazardous conditions to include, "ACTIVE SHOOTER"

    Below:  Paul Sears, SHS Principal, Myself, Business Administrator, Christopher Cotter, City Administrator, John Dougherty, Lt. Police, Angelo Palumbo, Manager of B&G, and Eric Evers, Btln Fire Commander
    
    City of Summit EM Planning Group - April 2012

    This course provided a comprehensive review and analysis of the importance, construct and need for planning, practice, training and testing of our comprehensive Emergency Management Plan (EOP).

    Our cohort included groups from Unalaska, Alaska (aleutian islands-Dutch Harbor); Humble,Texas; Aurora, IL; and Stevens Point, WI, presenting a broad based perspective on emergency planning.


    In order to maintain a high state of readiness to ensure life safety, Incident stabilization and preserve property, we need to put the plan into action through ongoing practice of drills, tabletops and full scale exercises.