Winter Update

Human Resources + purchasing issue / WINTER 2011

Indispensable tool for School Business Management

rules

playing

by the

human resources & purchasing handbook >>

This resource of new rules and regulations will help in making the right calls / 24

www.iasbo.org

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%JE ZPV LOPX 60% of Illinois ASBO Professional Development Committee members say they participate mainly to serve other members...

‌and come back with ideas and inspiration for their own districts.

Illinois Association of School Business Officials 2 |

Update Magazine / Winter 2011 6QEBUF .BHB[JOF 8JOUFS

Consider joining a PDC today find out more at iasbo.org/pdcs

inside

Illinois Association of School Business Officials Update Magazine / Winter 2011 / v.19 / i.02

Human Resources + PURCHASING issue

24

Purchasing 101: Avoiding the Penalty Box School district purchasing is a complex arena with many rules and regulations. Having a correct understanding of Illinois procurement laws can help you stay in the game, and the newly revised Illinois ASBO Purchasing Manual is a great place to start.

the i n s a n d outs of school l e g i s l at i o n Navigating the legislative system to make sure your district is heard.

Cover Story by Kevin J. Nohelty

Point of View: Taking Aim at 2012 Healthcare Reform Health plan administrators need to start thinking ahead toward 2012 when new healthcare reform legislation will impact health plans: including W-2 reporting, more paperwork, and some new costs and benefits.

By Lisa Carlson J.D. and Arnie Munson J.D.

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www.iasbo.org

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perspective

articles

from-the-podium Where Our Challenge Begins:

Leadership skills help deliver quality education in trying times. 07 from-the-office Resources Make a Difference: Facing

the complexities of purchasing and HR, with some help. 09 from-the-field Talk to an Expert: Service Associates help members take on school district purchasing. 11 Path-to-Success An eye-opening journey for one

participant in the Leadership Institute. 14

Changing Gears Two new dynamics in staffing and negotiation now exist; both are born out of the economic crisis and both are game changers. Effective management of these dynamics is essential to school districts’ success.

By Robert G. Grossi and Darlene von Behren

SCHOol Business 101

28

Unemployment In Illinois

Legal issues members face daily:

Best practices to lessen the burden of claim costs to your district.

Residency, prevailing wage, SB7 and more. 15

By Pete Moore and Susan Birkenmaier, Ed.D.

Business Partners Cutting Through the Red Tape: A

streamlined purchasing process saves time and dollars. 16 Supporting role More Blessed to Give: Being a member is about the value you extend to others. 17 from-the-TABLE An Illinois ASBO Story: The Purchasing Manual update took the combined efforts of many. 18

32 Collective Bargaining: What’s Negotiable and What Isn’t The Performance Evaluation Reform Act of 2010 (SB 315) and the Education Reform Act (SB 7) contain a number of statutory changes. Schools need to recognize which aspects of these Acts are subject to collective bargaining negotiations.

By Phillip H. Gerner III

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Update Magazine / Winter 2011

36

Resources

on my list

Five ways school districts can BE STRATEGIC WITH TECHNOLOGY & IT COSTS There are a number of potential avenues to explore in saving money through IT investment.

Check out five steps we found to benefit our K-12 partners.

By Chris Beyne and Oswaldo (Oz) Galarza

40 The final word Great Ideas from Great Illinois ASBO Members Mary Werling

Asst. Superintendent/Business Glenview CCSD 34 As a business official, Mary takes on the role of overseeing the purchasing process in an effort to seek favorable, competitive pricing for the school district. She believes that Illinois school districts should continue to seek opportunities to combine purchasing activities with other local or regional school districts and municipalities to bring more purchasing power for all.

46

Talking Tactics:

Recognizing what really matters is key to getting positive outcomes when stakes are high and emotions run strong.

43 on paper Essential manuals on purchasing, procurement and personnel.

44

on screen Joint purchasing, teacher qualification, hiring reform, pensions and more.

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www.iasbo.org

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Update Magazine / Winter 2011

Perspective / Board President

From-the-podium Where Our Challege Begins We are well into the school year and I am sure that we have all shared some similar experiences. Maybe you attended the ASBO International Conference in Seattle, or the recent Tri-Conference in Chicago. We have all implemented our FY 2012 budgets and are now hoping our revenue projections materialize. After a well-deserved holiday break, we will return to budget details for the 2013 Fiscal Year. Here is where our challenge begins.

The summer of 2011 was one of turmoil in Washington D.C. The debt limit debate and ultimate bond rating reduction by Standard & Poor’s have brought the need for changes in Federal fiscal policies to the forefront. Did this chain of events signal the beginning of a new recession, or was it the continuation of the recession of 2008? Even the experts can’t agree, adding to our uncertainty.

Richard A. Lesniak Dir./Business Services Lockport Twp. HSD 205

Simply Saying

Our students are depending on our strong leadership to deliver quality education. We all need to be up to that challenge.

School funding relies on a process that brings private money to the public sector via taxation.

Schools educate and graduate students who ultimately enter the workforce, they pay taxes and the cycle continues. This process depends on an economy that supports sustained employment.

Without the workforce, the process breaks down and revenue traditionally earmarked for schools is reduced.

Schools have been struggling with reduced revenue for at least the past three years. Many schools had no choice but to add to the number of unemployed by reducing their own work force to balance budgets.

During these trying times, we must also use our leadership skills and plan for the possibility of even more revenue reduction and more budget restraints.

All of this occurs at a time when educational reform is squeezing our resources.

At some point normalcy will return and it will take time for the state to catch up on the backlog of outstanding invoices. In the meantime our students are depending on our strong leadership to deliver quality education. We all need to be up to that challenge.

On behalf of the Illinois ASBO Board of Directors and staff, I would like to wish all of our members a safe and happy holiday season. Make sure you walk away from the stress of your position and spend quality time with your family and friends.

Above all, please remember our fellow educators, who because of this economy, have lost their jobs and are seeking employment in the profession in which they have dedicated their lives.

www.iasbo.org

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REACH NEW

HEIGHTS in your

LEADERSHIP

The Illinois ASBO Leadership Institute puts established and aspiring leaders alike on the road to real improvement. In the words of those who’ve been down the path…

WIDEN YOUR PERSPECTIVE

“I learned a lot about myself; much of it I already knew, but never could quite articulate. I now have a framework to interpret my behaviors and how they may impact others.”

BUILD BRIDGES WITH YOUR STAFF

“

When you’re ready to take an honest look at your leadership effectiveness, you’re ready for the Leadership Institute.”

-Tony Inglese, Inaugural Cohort

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Update Magazine / Winter 2011

Registration for 2012 Cohort is now OPEN at:

“I now understand how people produce quality work – which has helped my relationships with my staff. I can tailor to what they need… so that everyone is moving and growing.”

Reach your True Potential… Plan now to participate in career-changing opportunity beginning this May at Annual Conference.

iasbo.org/leadership

Perspective / Executive Director

From-the-office Resources Make a Difference In this issue of UPDATE we are focusing on two school business functions that are critical to the effectiveness of all school districts. If HR and purchasing are not done right, districts face the real possibility of legal trouble, system instability and loss of organizational quality across the board. All of these impacts lead to a lack of confidence in leadership among staff and community. In the end, any of those will be damaging to students as districts are forced to target resources away from instruction and into legal counsel and damage control.

Michael A. Jacoby

Simply Saying

Executive director Illinois asbo

If HR and purchasing are not done right, districts face the real possibility of legal trouble, system instability and loss of organizational quality…

Human resources, while a field in itself, it is really about who we hire and how we keep them, while at the same time, making sure we do everything according to the law before, during and after employment. Education is a people intensive business and the issues associated with recruiting, selecting and retaining quality personnel are deep and vast. Ever hear someone say, “schools should be run like a business?” Well, here is a top 10 list that HR professionals face in the private sector. It comes from a leading private sector HR consultant, Paul Gerhard of Leadership Success.

Top 10 HR Issues: 1. Talent Management 2. Recruiting and Interviewing 3. Employment Law 4. Benefits and Compensation 5. Performance Management 6. Corporate Culture 7. Training and Development 8. Employee Motivation 9. Harassment and Discrimination 10. Employment Branding

Sound familiar? When it comes to managing human resources the private and public sectors face the same challenges. Essentially, schools do run like a business when it comes to these issues. Yes, we have other statutes that impact school district HR, but in the end, most of those are simply add-ons to private sector requirements.

Hopefully, this issue of UPDATE will help you get deeper information in several of these areas, as well as, with some of the hot issues emerging in Illinois schools.

Purchasing seems like a simple concept. We decide to buy something and go get it. However, as the detail in the newly updated Purchasing Manual communicates – this is anything but a simple process. The complexities are enormous and again, legal pitfalls are around every corner.

We owe a great debt to those members of the Purchasing Professional Development Committee who worked on the update of this manual. Keep it close and pass it around, as many employees in a school district are involved in this activity in some way or another.

At Illinois ASBO we are committed to bringing you the most up to date information possible on the topics that are important to you. I think this issue of UPDATE hits the mark. Let me know if you agree.

www.iasbo.org

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Coming winter seminars For full seminar listings including location and PDC sponsorship, check the current Calendar of Events that was included with UPDATE or visit www.iasbo.org and register for professional development today.

#"'2'-, 5',2#0

The

CALENDAR OF EVENTS

Maga zine Illinois Association of School Business Officials Northern Illinois University, IA-103 108 Carroll Avenue DeKalb, IL 60115-2829 P: 815.753.1276 / F: 815.753.9367 / www.iasbo.org

Update Editorial Advisory Board PDC COORDINATOR members 0#%'120 2'-, Registering for any Illinois ASBO event is easy. Visit www.iasbo.org, and select Events.

Then select either online registration or the faxable pdf document (when available).

Be sure to fax your registration to 815.516.0184. If there are any questions about registering, please contact Nicole Lee at 815.753.9305.

Upcoming

Kristopher P. Monn, Educational Enterprise Grant L. Sabo, Facility Management Stacey L. Bachar, Financial Resource Management Ann C. Williams, Human Resource Management

December 13, 2011

January 10, 2012

January 13, 2012

January 25, 2012

January 26, 2012

January 31, 2012

February 14, 2012

February 14, 2012

March 06, 2012

March 13, 2012

March 13, 2012

March 14, 2012

March 15, 2012

April 10, 2012

May 16, 2012

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Richard A. Lesniak, Ancillary Services

Update Magazine / Winter 2011

Environmental Health & Safety Seminar DoubleTree Guest Suites & Conference Center; Downers Grove, IL Public Relations and Internal Communications DoubleTree Guest Suites & Conference Center; Downers Grove, IL Introduction to School Finance - Support Staff DoubleTree Guest Suites & Conference Center; Downers Grove, IL ISDLAF+ User Group Seminar Embassy Suites East Peoria; East Peoria, IL ISDLAF+ User Group Seminar Hilton Garden; O'Fallon, IL ISDLAF+ User Group Seminar NIU Naperville Campus; Naperville, IL Grounds Care & Planning and Playgrounds DoubleTree Guest Suites & Conference Center; Downers Grove, IL Seminar on School Finance - AAC #1062 DoubleTree Guest Suites & Conference Center; Downers Grove, IL Energy Saving, Sustainability, LEED DoubleTree Guest Suites & Conference Center; Downers Grove, IL Building Systems: HVAC, Electrical, Plumbing and Technology DoubleTree Guest Suites & Conference Center; Downers Grove, IL ISDLAF+ User Group Seminar NIU Naperville Campus; Naperville, IL ISDLAF+ User Group Seminar Embassy Suites East Peoria; East Peoria, IL ISDLAF+ User Group Seminar Hilton Garden; O'Fallon, IL AM SESSION: Custodial Operations AND/ OR PM SESSION: Maintenance Operations DoubleTree Guest Suites & Conference Center; Downers Grove, IL Illinois ASBO 61st Annual Conference Peoria Civic Center; Peoria, IL

Robert J. Ciserella, Information Management Kari L. Fair, Materials & Services Management Paul A. O'Malley, Sustainability

BOARD & EXTERNAL RELATION members Richard A. Lesniak, President Dwain Lutzow, SAAC Chair

AT-LARGE MEMBERS Angie Peifer, Illinois Association of School Boards Rich Voltz, Illinois Association of School Administrators

STAFF MEMBERS Michael Jacoby, Executive Director

815.753.9366, mjacoby@iasbo.org Susan P. Bertrand, Assistant Executive Director

815.753.9368, sbertrand@iasbo.org Angela D. Lehman, Communications Coordinator 815.753.9371, alehman@iasbo.org Rebekah L. Weidner, Staff Writer/Editor 815.753.9270, rweidner@iasbo.org Brett M. Olson, Editor/Designer 815.753.7654, bolson@iasbo.org Tammy A. Curry, Editor/Designer 815.753.9393, tcurry@iasbo.org

Illinois ASBO Board of Directors Richard A. Lesniak, President Mark E. Staehlin, President-Elect Hillarie J. Siena, Treasurer Garrick C. Grizaffi, Immediate Past President 2009–12 Board Directors

Dennis Burnett, Nelson W. Gray, Raymond P. Negrete 2010–13 Board Directors

Susan L. Harkin, Beth L. Millard, Curtis J. Saindon 2011–14 Board Directors

David Bein, Jennifer J. Hermes, Glayn C. Worrell

Illinois ASBO Board Liaisons Dwain A. Lutzow, AIA, Service Associate

Advisory Committee Chairperson Aimee L. Briles, Service Associate Advisory Committee Vice Chair Terrie S. Simmons, ASBO International Liaison Gil Morrison, Regional Office of Education Liaison Debby I. Vespa, ISBE Board Liaison Dean M. Langdon, IASB Board Liaison

Privacy Policy All materials contained within this publication are protected by United States copyright law and may not be reproduced, distributed, displayed or published without the prior written permission of the Illinois Association of School Business Officials.

You may not alter or remove any trademark, copyright or other notice from copies of the content.

References, authorship or information provided by parties other than that which is owned by the Illinois Association of School Business Officials are offered as a service to readers. The editorial staff of the Illinois Association of School Business Officials was not involved in their production and is not responsible for their content.

Perspective / SAAC Chair

From-the-field Talk to an Expert Whether you are cruising the Exhibit Hall or the Illinois ASBO Directory, Service Associates can help you with your purchasing plans. Purchasing goods and services can be a daunting task, yet with the breadth of expertise from fellow service associate members, the task should not be that difficult.

Rules and regulations are in place to guide the purchasing process. However, there are times that even determining, “What do I need? ” will take research, understanding and time. That is where the “member” experts in the field, can expedite your efforts, clarify the issues and help you make informed decisions. One size doesn’t always fit, and the RFP from one district may not provide the specific needs for your district. Ask a professional and then determine what course of action serves your schools the best.

Dwain A. Lutzow, AIA CEO DLA ARchitects, ltd.

Simply Saying

Networking is the opportunity to learn from each other, about requirements, concerns and ways to provide creative solutions…

The Exhibit Hall has been described as the gauntlet for prospective business managers looking for information. However, those Service Associates that truly “get it,” realize that all hype and no information is not the way to instill trust and properly network with your fellow business managers. Instead the Exhibit Hall should be the place to initiate relationships and to disseminate information that is helpful with the future consumer and allows for a healthy exchange of ideas.

Obviously the purchasing of goods and professional services are very different and they need to be treated as such. However, whether you are buying specialized security systems, supplies or financial

or architectural services, there can be subtle to major differences, and choosing the correct option can make a big difference – thus a better fit for your particular needs. Getting the information from the experts helps you make those informed decisions that can ultimately help save time and money for your district.

Networking is the opportunity to learn from each other about the requirements, concerns and the ways to provide creative solutions for each goods or service need. Take the time to learn from the experts on both sides of the fence and the true winners will be the improved schools and performance of the students we serve.

www.iasbo.org

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Contributors

Chris Beyne

Oswaldo Galarza

Susan L. Birkenmaier

Sales Representative, Digital Schools Midwest

President, Virtual CTO, Consulting Inc.

Director of Operations, LaGrange Highlands SD 10

Sales and marketing manager for developer Atom AMPD and product manager for private label product DS Secure (a network/ communications software platform) offered by Digital Schools. Has a strong background in technology sales serving the k-12 sector. chris@dssecure.com

Senior executive and director level leader with 20 years of experience leading enterprise Information Systems & Technology Divisions for medium to large school Districts. CSM is a reseller of the DS Secure product.

Oz@ozinitiatives.net

Has been Director of Operations at LaGrange since 2001. An IASBO member since 1991, she has served in the fields of special education and general education finance, human resources, grants and risk management. sbirkenmaier@district106.net

Kevin J. Nohelty

Pete Moore

Lisa Collins Carlson, J.D.

Asst. Supt. /Business, Lincolnwood SD 74

Client Relationship Manager, TALX, Provider of Equifax Workforce Solutions

Area Vice President , Compliance Consulting Gallagher Benefit Services, Inc.

A widely known expert in the education field for the last 19 years, Nohelty has worked for progressive school districts in the Chicago suburbs and volunteered on numerous professional boards. Has served on the Purchasing Professional Development Committee for 18 years. knohelty@sd74.org

Has been working in the unemployment industry with TALX Corporation since 2004. Throughout his career, has worked with over 300 school districts in Illinois providing consultation and overseeing unemployment claims management services. pmoore@talx.com

With more than 20 years of legal experience in insurance and benefits law, Carlson assists employers and public entities in health and welfare benefit plan compliance and laws and regulations including ERISA, HIPAA, COBRA, FMLA and Healthcare Reform.

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Update Magazine / Winter 2011

lisa_carlson@ajg.com

Arnie Munson , J.D.

Phillip H. Gerner III

Robert G. Grossi

Compliance Consultant, Gallagher Benefit Services, Inc.

Partner, Robbins, Schwartz, Nicholas, Lifton & Taylor, Ltd.

Treasurer, Bloom Twp. Trustees of Schools

His special area of expertise relates to practical application of employee benefit laws and regulations to benefit plans and their administration. He also serves clients through provision of document review and design for the purpose of compliance. arnie_munson@AJG.com

Councils and represents school districts in collective bargaining negotiations, teacher evaluations and other labor and employment issues. Has successfully handled many appeals for educational employers. A frequent presenter for educational associations. pgerner@rsnlt.com

Has served at Bloom Township since 1986 and President of Crystal Financial Consultants, Inc. since 1989. Appointed by ISBE to serve as the CEO of the Hazel Crest School Finance Authority and recipient of the 2011 Monarch Award from the Illinois ASBO Foundation. crystalfinancial@yahoo.com

Would you like to be an UPDATE Contributor?

Contributions to the UPDATE Magazine are solicited periodically to enhance the content of the Magazine. If you have an issue that you feel needs to be brought to the forefront, present your article ideas to Angie Lehman at alehman@iasbo.org

Darlene von Behren Asst. Supt./Administration & Personnel, Plainfield CSD 202

Councils and represents school districts in collective bargaining negotiations, teacher evaluations and other labor and employment issues. Has successfully handled many appeals for educational employers. A frequent presenter for educational associations.

Keep in mind that issues are themed and so your contribution may not appear for some time, or we may choose to distribute it in some other format. The issue themes that we will be soliciting articles for next year include: • • • •

Technology Finance and Budgeting Legislative Topics Leadership and Wellness

We look forward to seeing new faces on this page as we continue to make the UPDATE an indispensable resource for school business management.

DVonBehr@psd202.org www.iasbo.org

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Perspective / Illinois ASBO Leadership Institute

By Susan L. Harkin Chief Financial Officer Crystal Lake CSD 47

Path to success An Eye Opening Journey In the spring of 2010, I signed up to participate in the Illinois ASBO Leadership Institute cohort. I had been at my new district for just under a year and was feeling that I wasn’t as effective in my new leadership role as I would like. Boy was I in for an eye opening experience. The journey started at the spring Illinois ASBO conference when I met other colleagues that were also interested in developing their leadership skills. We all came from a variety of backgrounds but shared the same desire, to become better in our current roles.

and began understanding how our behaviors impacted others. We also gained a greater understanding on working with different leadership styles. It was a long but very rewarding few days.

We met throughout the year to touch base on progress related to goals set. During that time, words like conserving/holding or supporting/giving have translated into behaviors I could choose to work better with others.

I now understand that my tendency to handle everything in a factual manner may not resonate with someone who tends to focus on fairness. I am able to look at roadblocks that come up and see if there isn’t another approach that will allow me to work better with others.

This summer our district leadership team participated in a day-long session on the principles of the Leadership Institute. A little over a year later, I feel that I have become more effective in my district leadership role and look forward to utilizing the skills attained in this program to continue on my leadership journey.

“I feel that I have become more

In October, we met for a two-night two-day immersion program to look at feedback from survey instruments that were completed. These instruments gave us a greater understanding on how we saw ourselves and included a 360 degree review from people we had solicited to give us feedback. We focused on our behaviors as strengths

effective in my district leadership role and look forward to utilizing the skills attained in this program to continue on my leadership journey.”

Find out more on the Illinois ASBO Leadership Institute at www.iasbo.org/leadership 14 |

Update Magazine / Winter 2011

Perspective / On the Profession

School business 101 What legal issues impact you daily in your work?

Diane Cooper

Business Manager, Troy CCESD 30-C

Illinois ASBO is Crowd-Sourcing the Issues: Illinois ASBO members have been and will be asked to answer the important questions facing all industry professionals.

A: Where do I begin? For me, it's really making sure that if something is not in a bid contract, all work on purchase orders for maintenance and repairs are compliant with the prevailing wage requirements.

Curtis J. Saindon

Assistant Superintendent, Frankfort CUSD 157-C

A: Residency issues are a daily legal issue I deal with. We have several investigations going on at a time and we have to make sure we have all the evidence necessary before we approach a family about improperly accessing our school system. It is becoming a more time consuming issue every year.

Patricia A. Syens

Treasurer, Alden-Hebron SD 19

A: The legal issues surrounding employment and dismissal are ones that we are facing more on a daily basis than in the past. The other huge issue of special education placement legal issues is one that is certainly time consuming, problematic and costly in some situations.

John A. Gibson

Business manager, homewood SD 153

Have a question or issue that needs to be addressed by School Business 101?

Submit your ideas or questions to Rebekah Weidner at rweidner@iasbo.org

A: We have come to the realization that the new reforms under SB7 will require a lot of time to implement and will also have an effect on collective bargaining this year. To say that this will be a complex law to implement is putting it mildly.

Want to add to the discussion?

Add your response in the Hot Topics Group within peer2peer Network. Then, watch for the next School Business 101 discussion for a chance to be featured in the next UPDATE Magazine.

www.iasbo.org

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Perspective / U.S. Communities

Business Partners CUTTING THROUGH THE RED TAPE OF SCHOOL DISTRICT PURCHASING

If you’ve had to navigate the bid process, you know that this can prove a daunting task. Illinois ASBO’s partnership with U.S. Communities saves members both hassle and dollars through a streamlined process and the benefits of joint purchasing.

The concept of joint purchasing is not new. Volume buying and centralized procurement have meant lower prices for groups ranging from private clubs to the biggest corporations.

A little history U.S. Communities is a nonprofit purchasing cooperative founded and owned by five co-sponsors, one of which is ASBO International. Seeing an opportunity to access government pricing for Illinois school districts, in 2005 Illinois ASBO entered in a shared partnership with the Illinois State Board of Education (ISBE) Illinois School Purchasing Network and U.S. Communities. Illinois ASBO renewed this partnership with ISBE and U.S.Communities in 2009.

How does it work?

All U.S. Communities contracts are competitively solicited by another governmental agency, in accordance with their government purchasing rules and regulations, allowing school districts to “piggy back” onto existing contracts. These contracts allow districts to bypass the administrative cost of advertising and bidding contracts, while maintaining competitive bid pricing.

Robert Wolfe, Division Administrator & Controller for ISBE, points out another key benefit: Districts can utilize the pricing information available through U.S. Communities as benchmarks for pricing with their day to day vendors.

For more information, please visit www.isbe.net/savings or www.uscommunities.org.

For more in-depth information about joint purchasing, check out Section X of the newly updated Illinois ASBO Purchasing manual.

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Update Magazine / Winter 2011

Buying Local: Office Supply Contracts Taking advantage of volume discounts doesn’t mean districts can’t buy local. The office supply contract with Independent Stationaries Cooperation, for example, includes eight vendors from throughout Illinois.

•

Rogard's Office Plus, Champaign, IL

•

Egyptian Stationers, Belleville, IL

•

Office Plus of Lake, County Waukegan, IL

•

Source One Office, Products South Elgin, IL

•

Park Ridge Stationers, Park Ridge, IL

•

Mid-City Office Products, Rockford, IL

•

Modern Office Interiors, Naperville, IL

•

Warehouse Direct, Mount Prospect, IL

If your district utilizes one of these suppliers, it is advisable to check whether you could achieve lower pricing through U.S. Communities.

perspective / Illinois ASBO Foundation

supporting role More blessed to give, and more than just money Why did you first get involved with Illinois ASBO? It could have been for your professional development, to learn about the business or bring your company to the forefront in the school business market.

As time goes by, most members realize that being an Illinois ASBO member is not all about what you receive; it has a lot to do with the value you share. And those who give the most tend to receive the most. This makes complete sense. When you are receiving value, you have more value to extend to someone else.

In the words of Foundation Award winners Shelley Clark and Pat Masterton…

“Under normal circumstances, I’m not a ‘joiner.’ It’s not my nature, but Illinois ASBO turned me into a joiner. I can think of multiple instances where I got an idea that I brought back to my organization and saved money.”

Pat Masterton, 2011 Distinguished Service Award Winner

“I would encourage anyone involved in Illinois ASBO to give as much as you can take from this group. The members who do that make this group the ‘go to’ group for school business information.”

Shelley Clark, 2011 Distinguished Service Award Winner

What motivates you to give?

Giving to the Illinois ASBO Foundation is an extension of the value you are already bringing to Illinois ASBO. The reasons you participate, whether as a business official or a vendor, are essentially the same reasons to give financially: • To benefit the individual careers of business managers and the industry.

• To help raise up the next generation of business managers.

• To demonstrate your commitment to education through this great organization.

As one Foundation Donor put it…

“We have a long-term reason to see the Foundation do well. We are into education and best practice. Things that benefit the business of schools are beneficial to us.”

Ready to give back?

Consider a donation to the Illinois ASBO Foundation. In a time when everyone is feeling the financial strain, giving is easy: you can spread out your donation into a number of payments to suit your budget and goals.

Take the lead in giving back and be recognized at iasbo.org/foundation

www.iasbo.org

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perspective / Professional Development Committees

from-the-table 2011 Purchasing Manual Update: An Illinois ASBO Story

It’s nice to know that within Illinois ASBO, members can get an idea, give it legs, and make it happen.

-Steve East

Purchasing PDC member Ask a longstanding Purchasing Professional Development Committee (PDC) member like Steve East, and he’ll tell you the story of the original Illinois ASBO Purchasing Manual, printed in 1996. As Illinois public school purchasing can be somewhat complex, the committee envisioned a one-stop reference for Illinois ASBO members both new and old to the field to learn about purchasing.

Fifteen years later, the laws have changed, but this intent remains the same. A standing committee agenda item, the Manual has been pruned and tweaked over the years, including a move online in 2003. Not until now, however, has it undertaken a large-scale review.

The Catalyst for Change The story of this manual update is a single component of a larger story, going back to when the Illinois ASBO Delegate Advisory Assembly (DAA) was organized in 2004 to bring issues of public policy before the Board of Directors and legislative decision makers. One of their first and most enduring initiatives came with the cooperation of the Purchasing Committee.

18 |

Update Magazine / Winter 2011

Working together, committee members helped push forward key legislation that changed the bid threshold from $10,000 to $25,000. This was a four-year process that included testifying to Senate and House committees, and getting the backing of key legislators until Public Act 95-99 passed in the Senate in October 2008.

Bringing the Changes Back With the passing of the Act, the Purchasing PDC knew some changes to the Manual would have to be made. Taking another look, they decided it was about time for a review of the manual from end to end.

This was no easy process, bringing in many stakeholders and sets of eyes — including committee members, Illinois ASBO staff and a legal review adding up to an estimated 400 hours of work.

Moving forward, as technology allows the Manual to become a more living, breathing document, the committee sees the update as a more continual process. As school purchasing continues to change and more sample resources and RFPs become available, the Manual will continue to evolve and change.

What it all comes down to The story of the Purchasing Manual illustrates how the combined effort of many can bring about tangible benefits for Illinois school districts. As Purchasing PDC member Steve East put it, “It’s nice to know that within Illinois ASBO, members can get an idea, give it legs and make it happen.”

New and Improved The Illinois ASBO Purchasing Manual remains an essential guide to help districts answer every day purchasing questions such as, “Can I bid that?” or, “How do I handle a late bid?”

The updated version of the Manual has added content to make it even more practical and beneficial: •NEW Bidding Hypotheticals •Updated Bid Specifications, RFP’s and Sample Forms •Expanded Appendix

Illinois ASBO Legislative Liaison Cal Jackson chimes in, “The point is that when you have an idea you’d like to move through, you have to work at it and be persistent.”

Find a copy of updated Manual within your UPDATE mailing or online at: www.iasbo.org/purchasingmanual

www.iasbo.org

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Taking Aim at

2012 Healthcare Reform Requirements

By Lisa Collins Carlson, J.D.

Article / Point of View Insight into the Issue

Area Vice President , Compliance Consulting Gallagher Benefit Services, Inc.

Arnie Munson, J.D. Compliance Consultant Gallagher Benefit Services, Inc.

Health plan administrators need to start thinking ahead toward 2012 when additional Healthcare Reform requirements under the Patient Protection and Affordability Act (PPACA) will become effective or will be effective soon thereafter.

A number of new requirements under healthcare reform legislation will impact health plans during 2012 and early 2013 as summarized in this article.

W-2 Reporting – Health Care Costs Must be Disclosed The most time-sensitive issue facing employers is the new W2 Reporting requirements. Starting with the 2012 tax year, employers are required to report the aggregate cost of employer sponsored health coverage in box 12, using Code DD for covered employees' 2012 W2’s. Reporting will be for informational purposes only, meaning that the reported costs are not taxable income to the employee.

The actual issuance of the W-2 does not take place until January, 2013;

however, employers need to update record keeping systems to track coverage beginning in January 2012.

A number of employers are exempt from this reporting requirement, at least temporarily. Employers who file fewer than 250 W2’s for 2011 that were exempt from the electronic filing requirements are exempt until January 2014. Self-funded plans not subject to COBRA continuation are exempt (i.e., some church plans).

Employers need not report with respect to former employees who may still be on the health plan but who will not be getting a W2.

For employers that must report, they will have to track the costs for each employee separately. These costs may not be static, particularly if the employer has a non-calendar year plan year where changes are likely to occur at annual enrollment.

Additionally, if an employee experiences a change in status, employers will need to monitor

and track those changes between single and family coverage levels or changes from one plan option to another (e.g. from a PPO to an HMO).

Employer Action Step: Make sure you have a process in place to track the costs of health care on an employee basis. Work with your external or internal payroll personnel to assure that this information can be captured, tracked and properly reported.

Summary of Benefits and Coverage– Even More Paperwork!

The second employer “to-do” item was just recently issued in proposed regulations — the Summary of Benefits and Coverage (SBC). Group health plans must provide a four page notice (double sided) to employees summarizing the plan benefits and coverage in 12 point type. The Department of Health and Human Services (HHS) has developed SBC standards and a model notice

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which must be completed by the group health plan and provided to employees beginning on March 23, 2012. This new SBC must be provided by non-ERISA plans such as non-federal government plans and church plans.

Employer Action Step: The model notice has just been issued by HHS. Work with your carrier, third party administrator or consultant to assure that this notice is properly completed and issued to your employees.

to implement. It will be important to work with your carrier or third party administrator to assure that you have adequate lead time to provide this notification of changes that are being implemented for upcoming plan years. This will be particularly critical at renewal or at the beginning of the new plan year when most changes tend to be implemented.

Comparative Effectiveness Research Fee – A New Cost to Your Plan

The third item on your 2012 watch list is the Notice of Modification. Group health plans must provide a notice of material modifications at least 60 days prior to the effective date of the change unless the change is already stated in the most recent SBC described above. This particular requirements was actually effective when the law was enacted, March 23, 2010, however, implementation was delayed until March 23, 2012 along with the issuance of the SBC.

The next item to be aware of is the Comparative Effectiveness Research Fee. Starting with plan years ending after September 30, 2012, group health plans will be assessed a fee of $1 per participant the first year, and then $2 per participant the second year. Following year two, this fee will be indexed annually. The fee ends for plan years beginning after September 30, 2019. This fee will be paid by insurers for insured plans and by plan sponsors for selffunded plans. The per participant fee will be based on the average number of lives covered under the plan for the year.

Employer Action Step: Employers should be cognizant that material changes to plan benefits will require at least a two month lead time

The purpose of the fee is to fund, in part, the new Patient-Centered Outcomes Research Institute created under PPACA. The Institute

Notice of Modification – Yet Another Notice Will Be Required

will conduct comparative research relating to patient outcomes to assist patients, clinicians, purchasers and policy makers in making informed health decisions.

Employer Action Step: Watch for additional guidance on how this fee is to be calculated and remitted. Regulations are expected to be published with regard to the application of this fee. This is also an item you should include in your 2013 budgeting for health plan costs.

More Preventive Health Care Benefits for Women with no Cost Sharing The final item employers need to be aware of for 2012 is the expansion of preventive care benefits for women. The following benefits will be considered preventive benefits for which no cost-sharing (no deductible, co-pay or coinsurance) may be applied:

•

Well-woman visits – An annual well-woman visit for adult women to obtain the recommended preventive services that are age and developmentally appropriate, including preconception and prenatal care, and additional visits if women and their providers determine they are necessary.

Health plan administrators must continue to focus on new and upcoming changes required under PPACA.

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Update Update Magazine Magazine // Winter Winter 2011 2011

Article / Point of View Insight into the Issue

•

• •

•

•

Gestational diabetes screening–For pregnant women between 24 and 28 weeks of gestation and at the first prenatal visit for pregnant women identified to be at high risk for diabetes.

Human papillomavirus testing–Beginning at age 30 (no more frequently than every 3 years).

STI counseling, and HIV screening and counseling– Annual counseling on sexually transmitted infections for all sexually active women.

Contraception and contraceptive counseling– All FDA approved contraceptive methods, sterilization procedures, and patient education and counseling for all women with reproductive capacity as prescribed. This requirement does not include abortifacient drugs such as the “morning after” pill. (See below for exemption for group health plans sponsored by certain religious employers.)

Breastfeeding support, supplies, and counseling– In conjunction with a pregnancy, comprehensive

•

lactation support and counseling, by a trained provider during pregnancy and/or in the postpartum period, and costs for renting breastfeeding equipment.

Domestic violence screening–Annual screenings and counseling for interpersonal and domestic violence.

As with the previous rules governing coverage of preventive services, plans will be allowed to use reasonable medical management to help define the nature of the covered women’s preventive services to help control costs and promote efficient delivery of preventive care services. That means, for example, that a plan may charge a co-pay for a brand name contraceptive, if a safe and effective generic version is also available without co-pay.

These benefits must be provided for non-grandfathered plans for plan years beginning on or after August 1, 2012, although the new regulations do offer a religious employer exemption with regard to the coverage of contraceptives.

Employer Action Step: If you have a non-grandfathered plan, make sure you update your plan documents and plan summaries to include this new requirement. You might also consider notifying employees of this new benefit in your 2013 plan year open enrollment materials.

Summary Health plan administrators must continue to focus on new and upcoming changes required under PPACA. In the near future, notification requirements including W-2 health care cost reporting, SBC notices and notices of plan modifications are being implemented. Plan coverage for women’s preventive health benefits is being enhanced. And finally, new costs to fund research will be applied to health plans in the form of the Comparative Effectiveness Research Fee. PPACA changes and requirements continue through 2014 when state health care exchanges become available and almost all individuals will be required to carry health care coverage.

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Purchasing 101: Avoiding the Penalty Box

School district purchasing is a complex arena with many rules and regulations. Having a correct understanding of Illinois procurement laws can help you stay in the game.

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Update Magazine / Winter 2011

By Dr. Kevin J. Nohelty

COVER STORY

Asst. Supt. for Business Lincolnwood SD 74

Purchasing goods and services in Illinois public schools should be a top priority for all administrators. As a result of the state budget crisis, school districts are faced with limited revenue resources forcing them to make staff reductions to close the deficit gap. Consequently, the longer a school district spends more money than the anticipated revenue for the fiscal year (deficit spending) the quicker fund balances will deteriorate. Ultimately, this forces school districts to find another source of revenue or they will have to borrow money just to make ends meet. These are the ingredients of a financial disaster for administrators and board members alike. Given this scenario, it’s clear that most, if not all, Illinois school district budgets are strapped for cash and must stretch every dollar as far as it will go.

Typically, the procurement of contracts, supplies materials, capital equipment represents 20-30% of a school district’s budget. On a ten million dollar budget, that is two to three million dollars. It is a significant amount of tax dollars that should be spent in the most efficient manner.

Having the knowledge and understanding of the Illinois procurement laws and regulations is a must for every administrator who is responsible for the procurement of goods and services in their school district.

Let’s face it, mistakes can and will happen. Successful leaders learn from their mistakes. However, not having the correct information of Illinois procurement laws can place you in the “Penalty Box.” Hence, the Illinois ASBO Purchasing Manual was developed in the early 1990’s to serve as a “go-to” resource guide for the novice to the most experienced administrators to refresh themselves on the essentials of purchasing in Illinois school districts. Beginning in 2010, the Purchasing /MSM Committee completely revised the Illinois ASBO Purchasing Manual with current practices, rules and regulations. Reading the Purchasing Manual will not only help you stay current on recently enacted laws but you will discover and come to understand some of the current practices in purchasing.

Having this vital information will help you steer clear of the “Penalty Box.”

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Your Purchasing Playbook PURCHASING AND THE LAW: Section I Paragraphs of the Illinois School Code (ICS 105 5/10-20.21) specifically relate to purchasing. In summary it states: • All contracts for purchase of supplies, materials or work in excess of $25,000 must be awarded to the lowest responsible bidder, considering conformity with specifications.

• All competitive bids must be opened by an employee or school board member at a public bid opening at which the contents of the bids must be announced.

• The formal bid advertisement must be published at least 10 days in advance announcing the time and place of the public bid opening.

RISK MANAGEMENT: Section III Having a solid level of understanding about the different types bonds and bonding requirements is a must. If you are uncertain about any aspect of the bonding requirements for a particular contract, it will be important to consult the district’s legal counsel.

Insurance certificates covering worker’s compensation, accident/disability, and property/liability are required on all work performed on school district property. No work shall be performed without an insurance certificate in hand otherwise you may be placing unnecessary risk on the school district.

However, there are several exceptions that are exempt from the $25,000 threshold in the School Code that you should become familiar with to avoid making any costly mistakes.

SOURCES OF AUTHORITY: POLICIES, PROCEDURES AND ETHICS: Section II As a School Business Official representing your school district, you should handle business associates in the utmost professional manner and always act in good faith. Maintaining a positive image of the district should always be a top priority. Highly successful business officials always promote fair, ethical and legal trade practices. If you ever find yourself in the middle of a controversy, it’s always best to make every reasonable effort to negotiate an equitable and mutually beneficial settlement versus an all out “scorch the earth” approach. Burning bridges with vendors and business associates is never a good practice.

Did you know that it is a Class 4 felony for any person who is caught Bid Stringing? Bid Stringing is a method in which a person knowingly structures a contract to avoid the competitive bidding requirements. As a School Business Official, always be above board and you will “Avoid the Penalty Box.”

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Update Magazine / Winter 2011

BIDDING: Section IV Did you know the difference between a Request for Information (RFI), Request for Quote (RFQ), and Request for Proposal (RFP)?

A Request for Information is just that! Seeking information about a specific products or services.

A Request for Quote is used when the decision has already been made about a specific product or service.

A Request for Proposal is commonly used when the district is seeking the supplier to suggest the best possible solution.

When searching for the best results, it is highly recommended to seek proposals from three to four different vendors.

QUALITY BASED SELECTION PROCESS: FOR ARCHITECTS, SURVEYORS AND ENGINEERS:

DISPOSAL OF SURPLUS EQUIPMENT: Section IX

Section V

In Illinois, the laws dictate that these types of professional services shall be hired through a RFP process that follows the federal procurement law. The Act essentially requires federal agencies to base the contract decision upon “demonstrated competence and qualifications” instead of the lowest responsible bidder. Whether you are going through this process for the very first time or you have conducted this process more times than you can remember, it would be wise to consult your district’s legal counsel before you begin.

CONTRACTS: Section VI There are three main types of contracts purchasing officials will handle. They include: 1) maintenance, 2) general conditions for construction and 3) installation contracts. They are all very different contracts with specific requirements that must be included to avoid larger more complex problems in the future.

Want to do a little “spring cleaning” in your district facilities? Disposing of district owned equipment that is beyond its useful life is a recommended practice.

Capital equipment may be traded-in or sold to equipment dealers but the Board of Education must approve the disposal of all capital equipment used as a trade-in for new equipment.

STATE CONTRACTS: Section X Want to be a “game changer?” Take advantage of State Contracts every opportunity you have. In the best interest of using taxpayer dollars, school districts can purchase personal property and supplies under the Joint Purchasing Act. The Joint Purchasing Act allows school districts to purchase common supplies under a state contract. The monetary savings to a school district can be astronomical.

LEASING: Section VII Districts will often consider the leasing of equipment to be a viable option instead of the outright purchase for several reasons. Whether it is limited surplus funds on hand, low interest rates or preservation of accumulated funds for a future project, it is common sense to perform a cost-benefit analysis of leasing versus purchasing equipment.

WAREHOUSING: Section VIII Have extra space in your district facilities? If so, warehousing (centralized system) district supplies can lead to savings, quality control and prompt distribution of supplies. General considerations should be made for the efficient and economical management of the supplies.

PLA Y

BY T HE RUL ES

I t’s th e a d va n ta k g o f I n owled eous f g or y e an reg u llin o is ou d u p t l n I llin a tion s. ro cure dersta o secu m en n din re o is Rea a t t a n d us ASB O din g th t law s g h i e Util e top o n g it a s Purcha n ewly a n d izin g s f ev re vis a in g gu sch e o ol b est pu r y a dm ide sh M a nua ed l o ef fi i d r cien istrict cha sin n istra t uld b e o s cy i g pr n bu w ill o a cti r's list. n ly ces sin e Wh c o ss o f fi rea te g in " P u is y o u re ce o r r di pera a ter sur c h a sin s tr i tion g e c s. in cl th e P Re fe r t 's e e? ur c ud e " M d in has th e a in g th is r M a n ke d is t i g h t h m a ua l ilin an r ic t o f f d s w it g g ets ic e . h in i yo u n r www.iasbo.org

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Update Magazine / Winter 2011

By Robert G. Grossi

Article

Treasurer Bloom Township Trustees of Schools

Darlene von Behren Asst. supT./ administration and personnel Plainfield school district 202

The New Dynamics Affecting Staffing and Negotiation Decisions Forget the traditional models for establishing your school district’s staffing patterns and negotiations’ strategies. Two dynamics now exist in the world of public education that are game changers. Both are born out of our current economic crisis. One acts like a disease that can destroy your district’s financial condition. The second, if used effectively, can mitigate the effects of this disease and improve your academic condition at the same time.

All districts must learn how to effectively manage these two dynamics in order to succeed during this new era.

Dynamic One

An extended period of low or negative revenue growth that will likely last for many years Schools have never been asked to operate in an environment where they are required to improve student learning with fewer resources available to accomplish such a task.

The factors affecting revenue growth include: •

•

•

The State of Illinois’ fiscal crisis and its impact on school funding Decreased real estate tax revenues caused by tax appeals, soaring foreclosure rates and little new property growth Growing momentum in Washington for reduced federal spending

To increase productivity with fewer resources, schools must find ways to reduce its largest expenditure types, salaries and benefits, with minimal impact on its students.

The traditional budget reduction model has been to reduce staff.

This model can compromise the level of educational services in many ways.

Since this dynamic is relatively new to the public sector, we turn to the private sector as a benchmark to effectively navigate through this new era.

Businesses are focusing on reducing the cost of labor without impacting their quality of service, which could cause a loss in their customer base. Once considered off-limits, companies such as United Airlines, FedEx and Hewlett Packard are reducing compensation packages to keep their businesses intact. General Motors, is paying new employees $14 an hour, half the rate it pays its long-term workers and over 40% of private companies have reduced employee benefits, according to Watson Wyatt, a benefits consulting firm.

Just as in the private sector, schools must reduce their cost of labor without reducing their quality of service. In terms of reducing salaries, a 5% reduction in compensation/ benefits, for example, may have less of an impact on student learning than a 5% reduction in staff size. Counter to traditional practice, schools must first determine the staffing and programs needed to achieve its desired student learning before calculating the amount of funds it

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can afford to give to its employees. To reduce healthcare costs, districts should consider forming Health Insurance Committees, which include a high representation of employee groups to create a more cost effective plan that is in the best interest of all parties.

reality can be tremendously beneficial for districts and their students.

Negotiate affordable collective bargaining agreements: •

Historically, many districts paid higher salaries than they could afford to attract and retain quality staff. What other school districts are paying is not as relevant anymore because other districts are not hiring.

•

Teacher specialist recruitment strategies including additional salary placement and/or signing bonuses may no longer be necessary.

•

Traditionally, teachers’ salaries were based on a grid that

Dynamic Two

T h e c u r r e n t s u p p ly o f qua l i t y wo r k e rs s e e k i n g e m p l oy m e n t fa r e xc e e d s t h e d e m a n d f o r t h e s e wo r k e rs The imbalance in the supply and demand of labor is creating a hiring environment unlike anything that anyone could have predicted. This new

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Update Magazine / Winter 2011

included steps. These steps created “automatic” salary increases often in the 2-5% range. This methodology does not reflect our new teacher evaluation system, which is based on teaching practice and student achievement. Since future revenue growth may exceed the cost of “movement only,” this model may need to be altered.

Restructure your staffing models The 21st century classroom will begin to look much different than the traditional classroom. With new learning frameworks and class structures such as acceleration, differentiation and blended

Article

To increase productivity with fewer resources, schools must find ways to reduce their largest expenditure types, salaries and benefits, with minimal impact on its students. The traditional budget reduction model has been to reduce staff. This model can compromise the level of educational services in many ways. curriculum, class size ratio will have less meaning. Teachers may no longer be assigned to a specific class, but instead may be assigned student caseloads. Students will have opportunities to access instruction from other classes in other locations. With effective planning, districts can maintain programs with a smaller staff and perhaps less transportation needs.

Create a more efficient and effective workforce With schools receiving as many as 500 applications for every job posting, this is the single greatest opportunity in your district’s history to “load up” with great talent.

Districts can hire teachers who are dually certified in specialist areas such as reading, special education and languages. A classroom teacher who has dual certifications can be more effective with students and eliminate the need for additional support staff positions.

Districts also must effectively

evaluate staff and utilize the tools available under new Illinois law to address unsatisfactory teachers.

Districts must begin to replace non-performing teachers with high performing teachers to improve their return on investment – student learning.

School districts are facing the most challenging financial times in our history. By being willing to take risks and turn these obstacles into opportunities, our students will continue to be afforded learning opportunities that allow them to reach their highest potential.

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Update Magazine / Winter 2011

By Pete Moore

article

Client relationship manager Talx corporation

Susan Birkenmaier, Ed.D. director of operations lagrange highlands district 106

Layoffs and Reductions in Force (RIFs) have unfortunately been a necessity for many districts due to budgeting constraints. As a result, Illinois school districts have recently seen a dramatic increase in the number of unemployment claims from current and former staff.

Let us begin our discussion with a dreaded phrase: unemployment claims. Financial uncertainty has driven an increase in the number of claims from substitute teachers and staff on leave during summer and other school breaks.

Being unemployed through no fault of the employee is the basis for all unemployment decisions that involve the former employer.

This is key for all decisions made by the state, regardless of the separation reason. Although there is often no reason for protest on claims for those RIF'd as they will likely qualify for unemployment benefits, your district has more control over claims for substitue personnel and those separated for reasons other than lack of work.

Initially, the individual will qualify for up to 26 weeks of unemployment benefits. Only after the first 26 weeks do extensions come into play, providing up to an additional 53 weeks of Federally funded benefits to the claimant. Your district is not liable for these 53 weeks. There are four tiers of extensions within the 53 weeks and each must be exhausted before an individual can move on to the next. Once all extended benefits are exhausted, the individual can then receive up to 20 weeks of state extended benefits. These benefits are once again chargeable to the district. This is why you may now be seeing individuals show up on your unemployment charge statements from as far back as 2009.

When considering unemployment claims the states consider five criteria, initially set by the Federal government in the 1930’s. The individual must be: 1.

2.

3.

4.

5.

Able to work.

Available for work.

Actively seeking employment.

Unemployed through no fault of their own.

Meet monetary requirements set by the state.

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The following best practices will allow you to manage the impact of unemployment claims: 1. CHECK YOUR TAX STATUS A majority of districts have reimbursable tax status, meaning that your district pays only for unemployment benefits assessed to the district, and this increased cost should be temporary. Luckily, this also means that you will be left unaffected from changes in tax regulations as you do not have an unemployment tax rate.

The insolvency of the Illinois state program has meant the state has needed to take loans from the Federal government.

As of July 28, 2011, Illinois has borrowed $2,218,027,944 from the Federal government to support unemployment programs. In order to repay this loan, changes are expected to the state’s rate table, meaning employers will pay higher unemployment taxes regardless of changes in their unemployment activity. These changes will have a long-term effect on employers

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If you are not currently set up as a reimbursable employer for unemployment claims, now is a good time to change your tax status. paying unemployment taxes. If you are not currently set up as a reimbursable employer for unemployment claims, now is a good time to change your tax status.

If your district currently has an unemployment tax rate and you would like to switch your tax status, you can call the Illinois Employer Services line at (800) 247-4984 for direction. You can also find information on Illinois’ newly redesigned website, www.ides. illinois.gov.

2. KEEP TABS ON SUBS In addition to dealing with reductions in force, school districts have a unique situation regarding substitute teachers. Illinois has a very helpful regulation in place, Section 1502 under the Illinois U.I. Act, easily remembered as the “30 day rule.” In

order to be a chargeable employer the individual must have worked 30 days for your district. The days need not be consecutive. The timeframe looked at by the state is known as the Base Period, which is the first four of the past five completed calendar quarters. The quarter in which the person files is not considered.

For substitute teachers who sporadically work for your district, it may prove beneficial to keep tabs on the number of days they work within a timeframe of the past year and a half, and if possible keep the total under 30 days. This does take some work, but may help reduce the number of substitute teacher unemployment claims for which your district is liable.

article

3. HAVE SOMETHING IN WRITING During scheduled breaks, there is another best practice to lessen the burden of unemployment costs to your district on all employees who file. During scheduled breaks, school district staff has “reasonable assurance” to return to work following the break and should not be eligible for unemployment benefits during scheduled breaks. Illinois does not require that this “reasonable assurance” be provided in writing, but experience has shown that having something in writing decreases the likelihood of the district being charged and speeds up the claims process with the state.

A simple one page letter should include: • The district’s intent/anticipation of the individual returning the following school year in the same capacity.

• Dates of scheduled breaks for the next school year.

• The employee’s signature acknowledging receipt of the notice.

• A copy of the school calendar.

The letter can be handed to staff near the end of the school year and mailed to substitute teachers remaining on your district’s list. Employees should sign and return the letter. This will protect against unemployment filings over the summer or any subsequent break during the school year. Be certain this is completed before the last day of work before the summer break.

However, reasonable assurance does not protect against claims for staff changing positions within the district.

Be sure to include wording that the notification is not intended to

create a contract of employment or to alter an existing contract of employment. An important item to note is that employees dismissed at the end the school year, who are later recalled over the summer will qualify for unemployment benefits until they physically return to work. This is the case even if wages continue throughout the summer.

4. GET SOME HELP! A final cost saving measure is the use of a third party administration company to handle unemployment claims and issues. A third party administrator will receive and monitor claims, respond to the state on your behalf, provide statistics and reports, and verify unemployment charges for accuracy.

Employees dismissed at the end the school year, who are later recalled over the summer will qualify for unemployment benefits until they physically return to work.

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COLLECTIVE BARGAINING WHAT’S NEGOTIABLE AND WHAT ISN’T

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Update Magazine / Winter 2011

article

By Philip H. Gerner III Partner, Robbins, Schwartz, Nicholas, Lifton & Taylor, Ltd.

INTRODUCTION

TENURE ELIGIBILITY AND ACCRUAL

The Performance Evaluation Reform Act of 2010 (SB 315) and the Education Reform Act (SB 7) contain a number of fundamental statutory changes to the process and standards for teacher tenure eligibility, new or vacant teaching position appointments, teacher evaluation ratings, standards, and procedures, and reduction-inforce (“RIF”). These critical statutory changes include:

SB 7 significantly changes teacher tenure eligibility criteria and enables teachers to obtain tenure with less than four consecutive years of full-time teaching service if they obtain “excellent” performance evaluation ratings. Teachers are eligible for tenure after two or three years of “excellent” performance ratings depending upon whether they received tenure in a prior district. SB 7 also mandates that non-tenured teachers are eligible for tenure after four years if they receive an “excellent” or “proficient” rating in their fourth year, and are rated “excellent” or “proficient” in either their second or third years.

R A teacher’s eligibility for tenure and the time frame for tenure accrual is based upon the teacher’s performance evaluation ratings.

R Selection of teachers to fill new or vacant positions must be based upon a teacher’s certifications, qualifications, performance evaluations, and factors other than seniority.

R A teacher’s performance evaluations and ratings must

be based upon a four-rating category system of “excellent,” “proficient,” “needs improvement” and “unsatisfactory.”

R A school district’s teacher evaluation plan must

include student growth criteria as a significant factor in a teacher’s performance evaluation.

R A teacher’s RIF layoff and RIF recall rights are

determined by the teacher’s evaluation performance ratings rather than their tenure status.

Based upon these major, fundamental statutory changes, school need to recognize which aspects of SB 315 and SB 7 are subject to collective bargaining negotiations or merely require the district to meet and confer with appointed union representatives in joint committee meetings.

Because tenure eligibility is dependent upon a teacher’s performance evaluation ratings, teachers’ unions will be much more likely to file grievances challenging a teacher’s performance rating. School districts should, therefore, negotiate contract provisions which provide that a teacher’s performance evaluation and rating are not subject to the grievance arbitration procedure.

School administrators should also reject any union negotiations proposals which require the district to grant tenure to any non-tenured teachers whose performance evaluation ratings satisfy the tenure eligibility requirements under SB 7. The tenure provisions in SB 7 are merely minimum eligibility requirements, and do not require school boards to award tenure to any teacher who satisfies these minimum statutory requirements.

Illinois court decisions recognize that school boards retain the authority to decide whether or not to grant teachers tenure status.

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Article

SB 7 requires school districts to select teachers to fill new or vacant teaching positions based upon criteria other than seniority.

SELECTION OF TEACHERS TO NEW OR VACANT POSITIONS SB 7 requires school districts to select teachers to fill new or vacant teaching positions based upon criteria other than seniority. Under SB 7, a school district must base its decision to fill new or vacant teaching positions upon teacher candidates’ certifications, qualifications, merit, ability (including performance evaluations), and relevant experience.

Districts can utilize seniority as a factor only if all of these factors are equal among qualified candidates. In addition, SB 7 provides that a school district’s decision to reject a candidate for a new or vacant teaching position cannot be subject to challenge under the contractual grievance procedure unless the district fails to comply with any procedural requirements for filling the new or vacant position.

School districts should, therefore, consider several options in negotiating vacancy and assignment provisions in teacher collective bargaining agreements:

R Delete any contract provisions

which reference seniority as a factor in selecting teachers to fill vacant teaching positions;

R Add a provision that reserves

the administration's prerogative to appoint teachers to vacant positions based upon their assessment of the candidates' certifications, qualifications, merit, ability (including performance evaluations), and relevant experience, regardless of the candidate's seniority; and

R Delete any procedural requirements for selection of teachers to fill vacancies because any procedural obligations subject the district to grievances if not strictly followed.

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TEACHER EVALUATION SB 315 mandates new teacher evaluation performance ratings categories, adds new required criteria for evaluating teachers (i.e., student growth) and requires professional development plans for teachers rated “needs improvement.” SB 315 does not impose any new statutory obligation for districts to negotiate changes to their teacher evaluation plans to comply with SB 315 requirements. SB 315 specifically provides: “Nothing in this subsection (a) shall make decisions on the use of data and indicators on student growth as a significant factor in rating teaching performance mandatory subjects of bargaining under the Illinois Educational Labor Relations Act that are not currently mandatory subjects of bargaining under the Act.” Regarding SB 315’s requirement that districts implement new teacher evaluation performance rating categories by September 1, 2012, there is no obligation to bargain this change. The IELRB has ruled that teacher evaluation performance criteria and performance ratings are not mandatory subjects of bargaining. Although districts need not negotiate the new performance rating system, districts should delegate to a joint evaluation committee responsibility for developing criteria and descriptions for each of the four ratings categories.

Similarly, districts should follow the 180-day joint committee process mandated by SB 315 for determining how to incorporate student growth criteria as a significant factor in the teacher evaluation instrument. Because SB 315 merely requires the joint committee members to comply with a standard of “good faith cooperation” during the committee process, there is no obligation for the district to bargain issues related to integrating student growth as a significant factor in a teacher’s evaluation.

SB 315 specifically permits districts to negotiate a shorter timeframe for tenured teacher remediation plans than the 90-school day period in The School Code. Districts must negotiate the duration of the professional development plan (PDP) process required for any tenured teacher rated “needs improvement.” Districts should consider negotiating a shorter tenured teacher remediation period (e.g., 45 days) if a tenured teacher previously failed to successfully complete a PDP. The remediation period should be shorter for teachers who have already had the opportunity to improve their performance under a PDP. In addition, districts should reserve the right to rate a tenured teacher “unsatisfactory” without previously rating the teacher “needs improvement.” There is no statutory requirement under SB 315 for a teacher to receive a “needs improvement” rating as a pre-condition to receiving an “unsatisfactory” rating.

REDUCTION-IN-FORCE (RIF) AND RECALL SB 7 completely changes the criteria and procedures for school districts to implement a RIF and recall of teachers. SB 7 requires districts to replace the teacher seniority

list with a list of all teachers categorized by positions they are qualified to teach

based upon their legal qualifications and any qualifications set forth in the district’s job description. For each position, the joint committee must place teachers into one of four RIF groups based upon the teachers’ performance evaluation ratings.

Teachers in RIF groups 1 and 2 (nontenured teachers who have not received a performance rating and teachers with a “needs improvement” or “unsatisfactory” performance rating) are subject to RIF layoff prior to teachers in groups 3 and 4 (i.e., teachers with “proficient” or “excellent” performance ratings), and are not eligible for RIF recall. The district must layoff teachers from positions in the sequence of their RIF groups, with teachers in group 1 released first and teachers in group 4 dismissed last. SB 7 retains seniority as a factor only in determining the order of RIF layoff within each of RIF groups 3 and 4, and for group 2 teachers with the same average performance evaluation rating.

There are several issues which are not negotiable under SB 7:

R The placement of teachers into RIF groups based upon their performance ratings is a statutory duty delegated to the joint RIF committee; and

R The sequence of RIF layoff of group 1 teachers (i.e., non-tenured teachers who have not received a performance rating) must be reserved to the discretion of the school district.

Districts should recognize that any changes in job description qualifications for teaching positions affect teachers’ terms and conditions of employment and will trigger a mid-term bargaining obligation. SB 7 does specifically allow districts to negotiate an alternative basis to seniority for determining the sequence of RIF layoff among teachers within RIF groups 2, 3, or 4. A district could, for example, negotiate a provision that teachers within groups 3 and 4 will be subject to RIF layoff in order of their average performance evaluation rating rather than seniority.

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Five ways school districts can

BE STRATEGIC WITH TECHNOLOGY & IT COSTS

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Update Magazine / Winter 2011

article

By Chris Beyne Sales Representative Digital Schools Midwest

Oswaldo (Oz) Galarza President Virtual CTO Consulting, Inc.

The nature and impact of technology requires educational institutions with dwindling school budgets to be strategic with their technology expenditures to avoid the consequences of IT spending being moved to the back of the bus.

Early adopters and school districts that have recognized technology as a strategic asset are finding that these IT investments can actually save districts money, particularly where there is a focus on consolidating functionality while enhancing productivity and security.

There are a number of potential avenues to explore in saving money through IT investment. The following are five steps we found to benefit our K-12 partners: 1. Adapt a total cost of ownership (TCO) approach with an emphasis on “Lower” TCO .

Total cost of ownership is a valuable tool to understand and articulate the total impact of technology on your organization. Individual districts will assess their readiness to adopt and engage virtualization and managed solutions. We encourage you to use TCO to factor in the total cost of ownership of hardware and software. The TCO process and information will provide you with the tools to make the best decision for your organizations. Think and embody strategy.

2. Stop overpaying for software licenses.

Annual software licenses create a twofold burden for districts: they can add up quickly with a large IT budget impact and they require careful monitoring to stage renewals. Minimize the impact by negotiating licensing costs with your vendor; take advantage of county and state agreements that lower your costs; where feasible and consider TCO (license consolidation).

Q: Are multi-year licenses possible to obtain from a vendor?

A: The answer is “maybe” as it really depends on the vendor. When you negotiate this license, cover the cost of releases and ensure that you can ‘opt’ out of the license if performance is not meeting requirements.

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article

3. Reduce multiple operating systems.

New technologies allow a single application to control multiple operating systems. This can reduce redundancies, staff time, and training costs while enhancing efficiency and control.

4. Don’t keep paying for obsolete hardware and software. Watch those releases!!

Ideally, the license agreement should cover releases to the core application for the price of the license. This ensures that you have the latest version and you need not worry about the budget impact. One thing most vendors have in common is the desire to not maintain multiple platforms to serve old versions. Every vendor’s policies differ. This is certainly a topic worth discussing.

5. Vendors K-12 experience is a critical factor in supporting security and organizational nuances.

School districts have distinct technology needs and limited budgets so your vendor should know these factors. Vendors without a strong background with school districts may bring technology that they think is fantastic but is overkill for your organization or does not address your particular needs.

Q: Security in schools districts is always a key concern, what are key questions to ask vendors with respect to security – particularly ensuring that the technology cannot be “hacked?”

A: There are conferences dedicated to letting hackers do their best to break security. Vendors often take their wares to these conferences. Check with your vendor to find out the level of security protection. If they have submitted the application to the “hacking world” find out what parameters they set for the hacker to follow. Remember, less is more in the testing world. If the hackers are given free access and fail to hack, better the possibility that the vendors is bringing you an application that even the best can’t hack.

Q: Are there “filtering” parameters that should be evaluated with a vendor?

A: Yes, Web filtering practices and categorization of sites are common practices with some vendors. Know your community; evaluate the impact of filtering practices, communicate limitations and potential risks. Recent headlines regarding the threat of legal dispute to resolve filtering practices demonstrate the need to be prepared and to require flexibility from your filtering software. Think and be strategic, though districts may have their favorites, TCO and service should be the lens used to make critical decisions.

While there are a number of options for controlling spiraling costs, these five steps can get a district headed on the right path to provide more for less!

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Update Magazine / Winter 2011

resources on paper: Static sources for education professionals

Tactics to talk through anything It begins as a mundane conversation with a co-worker or an ordinary school board meeting (if those indeed exist!)

Things being to escalate. People get up tight. The complaints roll in.

Somehow it all ends in an uproar, and you leave the conversation reeling.

What went wrong?

On My List Crucial Conversations: Tools for Talking When Stakes Are High

By Kerry Patterson, Joseph Grenny, Ron McMillan and Al Switzler

Overview: Does just the thought of a conversation you need to have with staff or board make you shudder? When emotions run strong and the outcome is critical to shaping a better future for students, the ability to engage in healthy dialogue is no longer an optional skill.

Learn from researchers who’ve spent over 25 years following opinion leaders and identifying keys to influencing people. In this compelling read, find the tools to conquer any conversation and change the course of your organization for the better. n

At some point, the discussion turned from an everyday matter to what Patterson and his colleagues would define as a crucial conversation — one where opinions vary, stakes are high, and emotions run strong.

These crucial conversations can range from a critique of another’s work to a fight between parent and rebellious teenager. In any case, the outcome has a far reaching impact on the relationship dynamic, company bottom line, and possibly even the health of those involved.

Fight or Flight?

We are not programmed to handle these conversations well. Most are unplanned, leaving us unprepared.

Even our bodies betray us as the blood rushes away from the brain to address the stress in other areas of the body.

In a heated discussion, people tend to either respond aggressively or to retreat from the conversation altogether. The authors refer to this as the “sucker’s choice,” when we start to believe that these are really are the only two options.

Finding your bearings What if there was a way to have that same conversation in a way that got the point across while remaining respectful AND bringing desired results? Patterson et. al. argue that the ability to do this begins with rising above the emotions of the moment and asking yourself: “What do I really want?

How would I behave if I really wanted these results?”

What if there was a way to have that same conversation in a way that got the point across while remaining respectful AND bringing desired results?

They go on to teach key skills such as: recognizing when safety is at risk and creating safety, persuasive speaking, how to listen and how to turn conversation to action.

With so much at stake, it is comforting to know that healthy dialogue is a skill that can indeed be perfected – and this engaging read will give you the tools.

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on paper: Static sources for education professionals

On Your Desk Illinois ASBO Purchasing Manual Inside: Essential purchasing-

related information for both the novice and experienced business official.

Find it: Make sure your free

copy included with this UPDATE gets in the hands of whoever handles purchasing in your district. Then, watch the Illinois ASBO website and the peer2peer Network as new resources and RFPs are added to our compiled collection.

An online version is also available at: www.iasbo.org/purchasingmanual

Read more about the development of this essential manual on pg 18.n

MORE ESSENTIAL MANUALS:

GOOD HR READS

On Procurement: Joint Purchasing Manual

Looking to brush up on workplace policies, federal employment laws or even give your human resource department an audit? Check out these “HR Bookshops” to find something that matches your interests.

Inside: The ins and outs of Illinois

joint purchasing policy, offering local governmental units the opportunity to share with the State the benefits of large scale centralized purchasing.

Books from the Society for Human Resource Management

Find it: Online at www.state.il.us/cms/ download/pdfs/sg_jntpman.pdf

Find it: At www.shrm.org/Publications/ Books

On Personnel: IMRF Authorized Agent’s Manual Inside: Everything employers need

to know about the Illinois Municipal Retirement Fund: including forms and check lists, coverage, reporting, member accounts, benefits and more.

HR Solutions from the American Management Association Find it: Go to www.amanet.org and click on “Books.”

Fresh from the IASB press Find it: Visit www.iasb.com/shop and

visit the Collective Bargaining section.

Find it: Online at www.imrf.org

under “Publications.”

Society for HR management E-Newsletters Inside: A variety of free newsletters to

keep you up-to-date with events and issues affecting the HR profession.

Find it: Online at www.shrm.org/ Publications/E-mailNewsletters

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Update Magazine / Winter 2011

resources

on screen: dynamic sources

ON PERSONNEL

MEANINGFUL MEMBERSHIPS

HHS Hiring Reform Initiative

plans and the latest contribution rates.

information, news, and resources.

Find useful information on Obama’s recent initiative to improve the Federal hiring process.

Looking for more HR related resources? Consider joining one of these organizations that cater specifically to HR professionals and find a wealth of resources at your fingertips.

Find it: At http://trs.illinois.

Find it: At www.hhs.gov/asa/ohr/

HHS Hiring Reform Initiative

gov/subsections/employers/

hiring_reform.html

www.shrm.org

for education professionals

ON PENSIONS TRS Employer Services Inside: Explanations of Tier I and Tier II

Inside: Your source for hiring reform

employerservices.htm FLSA Compliance Assistance

Illinois Association of School Personnel

IMRF Employer Resources

Inside: Everything you need to

Administrators

Inside: Forms, rates, publications,

ensure compliance with the Fair Labor Standards Act (FLSA), including recordkeeping, overtime, administrator interpretations and some useful “e-tools.”

www.iaspa.org

training workshops and other essential IMRF resources.

Find it: At www.imrf.org/employers/ employer_homepage.htm

Find it: At www.dol.gov/whd/flsa

ON PROCUREMENT

Data First Inside: Data and research to

master contracts, state procurement legislation, a reference library and more.

help you make resource founded decisions in your district. Check out the “Teachers/Staffing” topics to learn teacher qualification trends and more.

Find it: At www.purchase.state.il.us

Find it: At www.data-first.org

Illinois Procurement Bulletin Inside: A list of joint purchasing

Find these links and other up-to-date HR and Purchasing related resources on the peer2peer Network Resources page under UPDATE Magazine.

Illinois School Purchasing Network Inside: Lists of products and

suppliers offering the best prices to Illinois school districts, ISBE rules, School Code and more.

Have a good resource to share? Go in and add your own go-to resources for HR and Purchasing.

Find it: At www.isbe.state.il.us/savings

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The final word Great Ideas from Great Illinois ASBO Members Mary Werling Asst. Superintendent/Business Glenview CCSD 34 What is your professional role with regards to purchasing?

The objective of the purchasing function is to procure quality products and services to support instructional programming and operational services at the most competitive price. The professional role of a business manager or procurement officer is to plan and oversee the purchasing process in an effort to seek favorable pricing and to approve all purchases made on behalf of the school district. This process must be in accordance with state statute and board policy, fair and equitable to all vendors and meet the highest standard of ethics.

What will impact school district purchasing most significantly in the next 5-10 years?

Limited resources and shrinking expenditure budgets will place a continued emphasis on the importance of the competitive bid process and the opportunity to reduce the cost of services, supplies and equipment. In addition, the sluggish economy will continue to provide greater vendor competition as vendors work hard to secure business from their competitors. This dynamic provides significant opportunity for school districts to receive competitive pricing through the bid process.

What is the most important purchasing topic to address immediately?

The topic that needs to be addressed is how best to take advantage of twenty-first century technology in the purchasing bid process. The current public procurement process for school districts has become antiquated. Tools that allow school districts to move forward with electronic solicitation of bids and receipt of bids are critical. We need to expand our “reach� to vendors and suppliers and open wide the opportunity for fair and equitable competitive bidding. Electronic bidding tools that currently exist are not viable options for most bidding situations or for most school districts.

If you could change one thing about Illinois school district purchasing?

School districts should continue to seek opportunities to combine purchasing activities with other local or regional school districts and municipalities in a shared services format. There is more purchasing power available to all when volume buying and centralized purchasing is in place. An expanded role of the State’s Central Management Service (CMS), or other cooperatives, can provide many more opportunities to provide assistance, and cost savings, to Illinois School Districts.

Jim Womack / NIU

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Update Magazine / Winter 2011

:PVS 3FTPVSDFT :PVS /FUXPSL To find resources and discussions on a specific topic, try a global search. Once you log in, type in the “Search IASBO� box at the top right of your screen to see what insights you’ll find.

QFFS QFFS network

Find more tips and post your own in the peer2peer Best Practices Group. Remember that you must join a group to participate in the discussion.

(FU TUBSUFE UPEBZ Log in to iasbo.org with your membership credentials and then click on the peer2peer icon to be launched into the network!

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Indispensable Ideas, Networking & Tools Just When You Need Them Most

2012 Annual conference Peoria Civic Center May 16-18

ATTENDEE REGISTRATION Now open at: iasbo.org/acregistration

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Update Magazine / Winter 2011

Exhibitor REGISTRATION Now open at: iasbo.org/acregistration