NCSA Today Magazine, Spring 2011

NCSA TODAY A PUBLICATION OF THE NEBRASKA COUNCIL OF SCHOOL ADMINISTRATORS

TIGHT REVENUE Makes for a Balancing Act –Interview with Sen. Lavon Heidemann

Tough Decisions Ahead

RETIREMENT PLANS The Goal is “Long-Term Sustainability” –Interview with Sen. Jeremy Nordquist

THE FUNDING CLIFF FACT OR OR FICTION –Doug Lewis, Assistant Superintendent, Papillion-La Vista Public Schools

ONE-SIZE-FITS-ALL APPROACH FAILS –U.S. Senator Mike Johanns

Nebraska Council of School Administrators

April 2011

www.NCSA.org

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FEATURES

2 Tight Revenue Makes for a Balancing Act

BY ELISABETH REINKORDT

3 Retirement Plans: The Goal is “Long-Term Sustainability”

BY ELISABETH REINKORDT

5 One-Size-Fits-All Approach Fails Nebraskans

BY U.S. SENATOR MIKE JOHANNS

6

The Funding Cliff: Fact or Fiction?

8

Reflections on NCSA Membership

BY DOUG LEWIS

BY JACK MOLES

10

College Readiness for All

BY ROB SLAUSON

11

“Out-of-the-Box”

13

The Day the Governor Went to High School

15

What Will Happen When You Die?

BY ANN AUTEN

BY DR. KENT MANN

BY JACKIE M C GRAIL

16

HRA Equals Savings for Both District and Employees

BY MIKE BODEN

18

NCSA Report – Something to Celebrate!

BY DR. MIKE DULANEY and DR. DAN ERNST

NCSA EXECUTIVE BOARD 2010-2011 Chair . . . . . . . . . . . .Sarah Williams Vice Chair . . . . . . . . . .Bill Mowinkel Past Chair . . . . . . . . . . . Matt Fisher NASA Representatives President . . . . . . . . . . . .Jack Moles President-elect . . . . . . .Greg Barnes Past President . . . . . . .Bill Mowinkel NASBO Representatives President . . . . . . . . .Robin Hoffman President-elect . . . . . . .Dave Kaslon Past President . . . . . . . . Rick Feauto NAESP Representatives President . . . . . . . . . .Midge Mougey President-elect . . . . . . .David Kraus Past President . . . . . .Sarah Williams NASES Representatives President . . . . . . . . .Peggy Romshek President-elect . . . . . . . .Stuart Clark Past President . . . . . . . . .Jane Byers NSASSP Representatives President . . . . . . . .Randy Schleuter President-elect . . Mitch Bartholomew Past President . . . . .Kenton McLellan NARSA Representative President . . . . . . . . . . . .Ron Joekel NCSA STAFF Dr. Michael S. Dulaney Executive Director/Lobbyist Dr. Dan E. Ernst Associate Executive Director/Lobbyist Kelly Coash-Johnson Training and Development Director

20 CALENDAR OF EVENTS

Amy Poggenklass Finance and Membership Coordinator Angie Carman Executive Administrative Assistant

NCSA Mission The mission of the Nebraska Council of School Administrators (NCSA) is to be an effective leader for quality education and to enhance the professionalism of its members.

NCSA Today is a benefit of membership in the Nebraska Council of School Administrators, 455 South 11th Street, Suite A, Lincoln, NE 68508. Telephone 402.476.8055 or 800.793.6272. Fax 402.476.7740. Annual membership dues are $325 (active members), $100 (associate members), or $30 (student members).

NCSA Today is published quarterly. Send address changes to NCSA, Membership, 455 South 11th Street, Suite A, Lincoln, NE 68508. Copyright ©2011 by NCSA. All rights reserved.

Carol Young Administrative Assistant Elisabeth Reinkordt Staff Correspondent The opinions expressed in NCSA Today or by its authors do not necessarily reflect the positions of the Nebraska Council of School Administrators.

APRIL 2011

NCSA TODAY

1

STATEWIDE

Tight Revenue Makes for a Balancing Act

BY ELISABETH REINKORDT, Staff Correspondent

S

enator Lavon Heidemann, a farmer from Elk Creek and Chairman of the Legislature’s Appropriations Committee, knew his committee would face a difficult year.

“I think the Governor threw out a pretty good budget.

We wandered a little bit above it and a little bit below it,” he said, but all in all, he believes his committee has come to a point of balance that is in line with current revenues and needs.

Part of the reason for this year’s difficulty stems from the role that funds distributed through the American Recovery and Reinvest“I think everybody came in ment Act (ARRA) have played over the past realizing what we had to two funding years.

From the start, ARRA do.” funds have been ex—Sen. Lavon Heidemann pected to expire, he said, and noted that he expected school administrators have been well aware of this and have planned accordingly. However, it has been difficult to readjust to a general fund appropriation of closer to $810 million without the additional ARRA dollars. Though the intent of ARRA dollars was to help states through the most difficult part of the recession, Heidemann added that unfortunately, “revenue is not where we wanted it to be at this time. We’re back to reality.”

With more non-equalized districts, he said, the second year of this biennium budget will be even more difficult.

There are some early signs of good news, however.

Senator Lavon Heidemann confers with his research assistant, Kim Davis.

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NCSA TODAY APRIL 2011

Senator Lavon Heidemann, Chair, Appropriations Committee After meeting on February 25th, the Nebraska Economic Forecasting Advisory Board reported that, largely due to a predicted increase of sales tax revenues, it would adjust its October projections upward by $24 million for FY2011-12 and $30 million for FY2012-13. Their next meeting is on April 28th, and Senator Heidemann said that although he’d like to be optimistic, he’s worried. “I don’t want us to get ahead of ourselves,” he said. As Senator Adams proposes the TEEOSA formula this session, Heidemann says he’s urging him to remember “to be sure we keep it sustainable.”

Senator Heidemann knows how difficult it is to balance the funding needs of K-12 education with the other needs of state government, he said, noting that the Appropriations Committee is in the unique position of “being told what it will spend.” As the committee holds hearings, it becomes “a real balancing act,” as members see testimony from all manner of entities. Heidemann, whose wife is a third grade teacher at Johnson County Central, said he also has many other friends who are teachers or work in educational service units, stressing (continued on page 5)

STATEWIDE

Retirement Plans: The Goal is “Long-Term Sustainability”

BY ELISABETH REINKORDT, Staff Correspondent

Senator Jeremy Nordquist, Chair, Retirement Committee

A

year budget, increasing 0.6 percent in the first year and another 0.9 percent in the second.

Senator Lavon Heidemann, who serves on the Retirement Committee because of his position as chair of the Appropriations Committee, explained the challenge is that if the contributions increased too much in the first year, those funds would go into the whole pool of appropriations, meaning they would not be earmarked for retirement obligations. Heidemann stressed that retirement funds need to “help be part of the solution,” to state budget woes. Without discounting the importance of pension funds, he said, “we have to keep up with liabilities.”

“I know it’s not easy on plan members,” Senator Norquist said, but added that he hoped that after two or maybe four years, the state’s retirement plans will be able to make up for the hit taken during the recession in 2008-2009. It is hard to determine in advance how far into the future the rates would have to stay at an elevated level, he said, noting that investment returns have to be smooth over a five-year period for actuarial needs to be met. However, Nordquist said the Retirement Committee would move to come back down to the current levels of contribution when it was clear that the fund had rebounded from the recession. Nordquist added that (continued on page 4)

s Senator Jeremy Nordquist watches the news from other states, the chair of the Legislature’s Retirement Committee is happy to say that Nebraska “does things the right way.” At a time when many state budgets around the nation are facing crippling obligations to public employee retirement systems, he said, “we are very close, even with the huge fall in the stock market,” to a balance between interest and expenses.

Close, however, is not quite enough. At the beginning of this legislative session, Nordquist introduced LB 382 on behalf of Governor Heineman. Going into this biennium budget, Nordquist—who also sits on the Appropriations Committee —knew that the general fund appropriation for retirement would be minimal or non-existent. In order to keep up with annual actuarially defined contributions on the order of $18.8 million, an increase in the contribution rates for plan members of 1.5 percent has been proposed. While the final touches on the bill were still being worked out in committee, Nordquist is anticipating that the Senator Jeremy Nordquist confers with his legal counsel, Kate Allen. rate increases will be staggered in the two APRIL 2011

NCSA TODAY

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STATEWIDE Retirement…(continued from page 3) it “can’t be stressed enough that the key is meeting our actuarially defined contributions.”

Senator Nordquist understands the value of “maintaining robust and healthy plans,” on a very personal level. “My father passed away when I was a senior in high school,” he said. “We lived in South Dakota, and he was a state employee. I saw firsthand how my mother was able to survive because of his pension.”

Prior to being elected to the Legislature in 2008, Nordquist was a research analyst for the Retirement Committee under Senator John Synowiecki. (Both Synowiecki and Nordquist come from District 7, a district that includes portions of Downtown and South Omaha.) When asked why he was interested in working on retirement issues in the Legislature, Nordquist said he knows “how important public employee retirement plans were for families in Nebraska,” adding that he was interested in maintaining and preserving what he described as a “pretty secure system.”

He knows the rate increases over the next two years will not be easy for school districts, teachers, or administrators. “With the state budget being where it is, for many [public employees], raises aren’t on the table right now, so this is coming out of their takehome pay,” Nordquist said. “The Legislature appreciates the sacrifice,” necessary to keep plans sustainable, he said, and added that the fact that the “partner [organizations] are willing to do their fair share,” makes for a good public image in tough times.

Nordquist urged the members of NCSA, NSEA and NASB to help share this message with the public. “We need to work together to combat the misinformation that’s out there on combined benefit plans,” he said, adding that he felt lucky to have good partners in all three organizations. “We’ve always committed to not mov-

ing [on a change] until there is consen- Nordquist knows “how sus among the three important public groups.” Furthermore, Nordquist believes employee retirement that administrators in plans are for families particular “underin Nebraska.” stand that the plan is an asset [they can use] to recruit and retain teachers.”

Beyond the proposed changes in LB 382, Senator Nordquist and his committee will be considering other options as well. Senator Heidemann has proposed putting new employees on a cash balance or hybrid plan, and Nordquist has given assurances that he will be studying this in the interim. He warned, however, that it might “be difficult to switch [and] more expensive upfront.”

Above all, Nordquist emphasized that “long-term sustainability,” is his main goal, and assured that he would be keeping that as his priority as long as he serves in the Legislature. I

Tight Revenue…(continued from page 2) that he has always valued input from those working in education.

In fact, it was a constituent of his who is a teacher in his district who came to him with concerns about cyberbullying, leading him to introduce LB 123. In the wake of suicides around the country and the school shooting at Millard South, he said, he felt the timing was right to add cyberbullying provisions the Student Discipline Act. “I saw something should be done,” he said, noting that he would rather see Nebraska be “proactive [rather] than reactive.” Though the bill did not gain the momentum needed to get out of committee, he expressed his thanks to NCSA and its members for their support. Though he understands the concerns brought forth by the American Civil

4

NCSA TODAY APRIL 2011

Liberties Union, he remarked that similar legislation has been done in other states without issue, and hoped that a policy could be developed in Nebraska in the future.

Senator Heidemann was first elected to represent District 1 in 2004, and as he reaches the end of his second term, he reflected a little bit on his time as chair of the Appropriations Committee. “We’ve been able to accomplish far more than I ever thought possible,” he said, remarking that he has served as chair through some of the toughest times in recent memory.

Though there isn’t yet a designated successor in mind to take his place after next year’s session comes to a close, it will “have to be a unique individual,” he said. I

FEDERA L PERSPECTIVE

One-Size-Fits-All Approach Fails Nebraskans

BY U.S. SENATOR MIKE JOHANNS

C

Johanns

ongress faces many big issues during the reAs I have heard from so many educators over the mainder of this year but the possible renewal of years, local control and accountability in education are the No Child Left Behind Act will be one of the key to preparing our students for the future. The federal most crucial. government’s role in education should be limited and While I support standards, I do not support the fedwell-defined. eral government dictating them to our states. We must We must get education policy right. If we get it ensure our children are receiving the highest quality edwrong, we tie your hands instead of supporting the critucation and this will not be accomplished with a oneical work you are doing. In many ways, the future of our size-fits-all approach. I will work to ensure federal country is in your hands. You are helping to prepare our education reforms make sense for individual states and future leaders and innovators. We must provide them districts by acknowledging the importance of local conwith a solid educational foundation. I know you are comtrol and accountability. mitted to doing exactly that. I am confident that I speak Regulations and standards imposed from Washington for all Nebraskans in expressing appreciation for your are often simply unfunded mandates, and we all know dedication. I H that rare is the program that works the same A 4 G 28 A G C D C E 65 47 F B H J D 29 F B H J D 8 A G in California as it does in Nebraska. As you 4 C D 0 J A 3 C G J 9 B C F 4 H B D 31 F B H J J H A G 50 A G C know, one-size-fits-all approaches fail miser32 A G C D D 41 F B H 1 F 5 J 3 F 3 J B 42 A G C H E 52 ably to recognize the very distinct differences 34 A G C D D 43 F B H D K C 35 F B H J J C J 44 A G E D 6 B H in the challenges facing rural schools comA 3 H D G 45 F B D C K A 7 C G F 3 J C B 46 A G B 31 F B H J E H pared to their counterparts in large cities.

38 A D 47 F D K A G JohnBaylorTestPrep.com 32 402-475-PREP C G E 39 J C J 48 A 3 F B E B 3 D H K Rigid prescriptions from Washington always H D 49 F A C G 34 A G C D K J C E J B 50 F H B 35 F B H J E D H K A cause me concern.

G D 6 A G A C K G 3 J 1 ® E F 2 C Score 5 SAMPLE B J RESULTS F H 37 F ACT B 22 A G C D K H In addition, the federal government has E 26 FROM SCHOOLS USING 38 A Increase J 3 F B G E 2 D School K H 39 F (pre verses post C 24 A G C D K J prioritized a competitive grant program called E JOHN B 40 JBTP ACT Course) HBAYLOR 25 F B H J E D J K A G D 6 A G C K 2 J H 1 E D Race to the Top. The program was designed to F 1 C 2.7 B J HS G 27 F B Aurora C 2 A G H D K J 1 H F E B 28 ACentral H 3 F B C J E 2.38 G Catholic HS D 2 1 incentivize states to institute education reA 2 K 9 F H G 2 C D 4 J K A 1 F G 23 2.32 E 0 B C Holdrege HS 3 J H 5 E D F 4 1 forms that have demonstrated success in raisA B 2 D K G C 6 A G H D K J 5 1 J C Madison HS F 2 J E B C J H 7 B F 1 H D ing student performance. Nebraska shouldn’t B (Large 2.0 26 A G D K H A Hispanic 8 G 7 A 1 J F G 2 E 5 F B C J 1Enrollment/ELL) H 19 F D 28 be knocked out of the running for competitive K 6 A G H D 1Mead C HS 1.74 20 J C J E 7 F 1 J B H H D D K grants because we do some things differently H G A HS G 18Lake D Silver 2 C G J C F G 9 B C F B 1 J B H F 2 A B 2 from other states. Comparing apples to orG 20 A 8 A G H D 3 F 2 1 C 2 J 9 F B 24 A D H anges can be problematic, whether it is done 10 A G C D C T3 D 25 J S J 1 B C F 1 H B 26 D TE B H J D A as part of regulations or grant programs. I will 2 A G H G 1 C 27 J 5 F B A G 1of 13 F H “Currently 21 24 schools in the 1 JohnF BaylorB C J 2 D 6 A G 1 continue to seek out good ideas and informa4 H 1 C D 2 A 1988G J Stanford, 7 F areBusing J#1 service1area ESU the C J H 3 F B H 18 A G C D D tion about the consequences of our current 4 A G H D GJohn Test Prep C Baylor 19 Finstruction.

J B F 5 F B C B H A 20#1, our D 8 A G Throughout policies. I have held several education roundESU 6 A 1 C 2 J 9 F B 7 H D principals and tables across Nebraska in recent months gath10 A GhighCschool T4 D S J 1 C F 1 B guidance counselors have TE B H J D H ering insight from teachers, administrators and 12 A G A G C 13 F noticed a significant jump in J 1 others regarding the reauthorization of No school-wide ACT scores Child Left Behind and how the legislation has after implementing JBTP. Bob Uhing affected their education efforts. I will conEducational Service Unit #1 tinue to meet with educators and look forward to advocating for flexible policies that will best serve Nebraska and our country as we ACT is the registered trademark of ACT, Inc. John Baylor Test Prep has no affiliation with ACT, Inc., and John Baylor Test Prep is not approved or endorsed by ACT, Inc. consider this important legislation.

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APRIL 2011

NCSA TODAY

5

SCHO OL FINANCE

The Funding Cliff: Fact or Fiction?

BY DOUG LEWIS, Assistant Superintendent, Papillion-La Vista Public Schools

W

Lewis

e have been hearing and reading about “the funding cliff” ever since the Federal government passed the American Recovery and Reinvestment Act and the money was distributed to the State for aid to education. NDE, in August 2010, put out this statement in its AMERICAN RECOVERY AND REINVESTMENT ACT State Fiscal Stabilization Fund (SFSF), Frequently Asked Questions, “Invest one time ARRA funds thoughtfully to minimize the ‘funding cliff.’ The ARRA is expected to be a one time infusion of substantial new resources. These funds should be invested in ways that do not result in unsustainable continuing commitments after the funding expires…”

The idea that districts could allocate the ARRA State Fiscal Stabilization Funding monies for one time funding sources was nice in theory but short in reality, especially when the federal government was touting how the investment was saving jobs and the state governments were using the federal dollars to maintain their current state aid formulas. In other words, this was hardly an infusion of “substantial new resources” but rather a replacement for committed dollars.

“Saving and creating jobs implies expenditures on salaries, and salaries are inherently ongoing expenses,” said Jennifer S. Cohen, a policy analyst at the New America Foundation, a Washington think tank. “They create funding cliffs, because once the money runs out, you’ll

have to continue funding them.” (Robelen, 2009) During the first year of the ARRA stimulus funds, many districts in Nebraska worked diligently to abide by the advice from NDE. Districts made plans for one time expenditures so as not to create an unsustainable commitment. By the second year, the amount of ARRA funding increased to $140 million or 15 percent of the state aid commitment. By now the stimulus funding was a sustaining revenue for the state and the districts receiving it. Nebraska districts were now faced with the same realities that other districts around the nation were facing already, a drop off in state funding to K-12 education during the next several years. Even the NSEA recognizes the potential impact of the funding cliff on Nebraska School districts: “Last year, the Legislature sent $950 million in state aid to the state’s K-12 schools for the 2010-11 school year. Preliminary reports indicate that the Legislature could cut as much as $140 million from that for 2011-12, and the cuts would continue in 201213…State aid cuts translate into higher property taxes, massive job and program cuts, and increases in class size at the local level. State aid cuts hurt kids.” (NSEA, 2011).

Call it a cliff, call it a step, call it what you want. The reality is that many school districts around the state will have less money coming to them to fund their budgets than in the previous year. That is the reality. There will be less money distributed in state aid next year compared to this year. If the Governor’s plan is correct, there will be approximately $81 million less in state aid after the Education Jobs Funding is added back into the 2012 fiscal year. During the 2013 fiscal year another $10 million reduction is expected as the Education Jobs Funding money will be eliminated. (See Figure 1) What does it mean to have a funding cliff? The simple answer is…it depends. Districts that receive very little state aid may not see as large an impact as those that depend more heavily on state aid revenue. For some, the cliff may seem more like a pothole (although in some parts, even those can swallow a car) and for others it may seem like the Grand Canyon. For districts that don’t receive state aid the spending limitations being proposed will have similar budget implications over time.

Regardless of how your district is impacted the solutions (continued on next page)

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NCSA TODAY APRIL 2011

SCHO OL FINANCE The Funding Cliff…(from page 6) revolve around three things: cut expenses, increase revenues (raise taxes), or use cash reserve. Districts may need to use one, two, or all three of these methods to overcome the drop in revenues and the limitations on spending.

For obvious reasons, we are not going to talk about increasing revenues through higher taxes. Suffice it to say it is an option but probably one that is not top on anyone’s list. Many people will point to the use of cash reserve as the answer to the funding cliff dilemma. Many districts plan to utilize some cash reserve during this period but will do so cautiously. Districts require a cash reserve to allow them to meet payroll and other obligations until they receive their property tax draw from the county. School districts must operate with little property tax revenue for three quarters of the year or else borrow against the anticipated revenue and pay interest. The more cash reserve you spend down the more money you have to borrow and the tighter you need to control costs until you can pay back the loan. More important than the short term problems this creates are the long term impact the use of cash reserve has on a district. Once the economy makes a comeback, the district that draws down their cash reserve will still be in the cycle of borrowing and restricting spending until they can build the reserve back to a level that stabilizes the cash flow. Any growth or replacement of programs that were eliminated will be delayed that much longer.

The final method of dealing with reduced revenue and tighter spending lids is to cut costs. Across the nation this is the one constant that echoes above all the others. School districts require people to do the job of educating our youth. Personnel costs make up 80 to 85 percent of the expenditures in most districts. To truly impact the budget and spending, personnel costs must be addressed. For a district to actually cut the budget you have to assume that all spending remains the same as it was the previous year. Your budgeting process must start with a zero percent increase. In Nebraska, for a district to maintain current personnel costs they would need to be in top half of their array with all other districts remaining at the same level. However, districts below the midpoint in the array may be forced to increase their salaries to comply with Nebraska’s current CIR process. This in turn creates a domino effect within the array districts. To avoid falling below the midpoint the other array districts would need to increase their salaries and this in turn may affect other arrays. When the budget increases due to an increase in personnel costs and no corresponding revenue increase is available, the “funding cliff” just grows larger.

Is the funding cliff real? If you define a funding cliff as a

drop off in resources from the previous year, than yes we have a funding cliff in the state aid formula. How it translates to districts throughout the state depends on how much state aid your district receives. Will this funding cliff have an effect on all districts in the state? Yes, even those that don’t receive state aid will have pressure from the spending lids to reduce costs. Can cash reserves be used to reduce the “cliff effect”? Yes, but it cannot eliminate it and may prolong the impact if not done discerningly. Will districts have to make cuts in their budgets? Yes, and they will have to make some tough decisions with regard to personnel and programs because of the nature of the education business. As salaries increase, offsets must be found within the budget to balance that out. Will taxes go up? That is one that only your district can answer. There are still many questions that haven’t been answered and won’t be until state aid and valuations have been certified. About the only thing we can be sure of every year is that the state aid formula will change and we will have school next year. I Nebraska Department of Education. (2010, July 20). AMERICAN RECOVERY AND REINVESTMENT ACT State Fiscal Stabilization Fund (SFSF), Frequently Asked Questions.

NSEA. (2011, January). Pivotal Year in Lincoln. The Voice, 64(5), 8-10.

Robelen, E. (2009, November 4). ‘Funding Cliff’ Fueling Worry Among States.

Education Week, 29(10), p. 1, 19.

McPherson & Jacobson, L.L.C. 7905 L St., Suite 310 Omaha, Nebraska 68127 (888) 375-4814 Email: mail@macnjake.com Web site: www.macnjake.com

Since 1991, McPherson & Jacobson, L.L.C. has conducted over 120 superintendent and principal searches in Nebraska

APRIL 2011

NCSA TODAY

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AF FIL IATE LEA DERSHIP

Reflections on NCSA Membership

BY JACK MOLES, President, Nebraska Association of School Administrators; Superintendent, Johnson County Central

A

s we look deeper into the black hole of economic questions facing schools today, it becomes personally easier to consider eliminating some of the “extra” costs of our profession.

One of those “extras” under consideration may be whether to discontinue membership in the Nebraska Council of School Administrators and our own affiliate organization. I am hopeful that any member that is considering this question will take the time to think through the benefits that membership brings. Sometimes these benefits are not things we can wrap our hands around, Moles but are simply inherently received as being part of the organization. I would like to take this opportunity to highlight some of the highlights that membership in NCSA brings.

NCSA is one of the “go to” organizations in legislative issues dealing with education. Mike Dulaney’s bill summaries are universally seen as probably the best resource for educators, lobbyists, and often senators in providing a brief description of often lengthy bills. Having NCSA’s name on these summaries automatically puts the organization at the table in any discussion. However, the input that members provide to senators in the form of information on the impact of pieces of legislation cannot be overstated. Again, strong representation by members of NCSA puts us at the table. I believe the influence that NCSA carries legislatively is helping to define education in this constantly changing atmosphere. Our organization plays a major role in such issues as the retirement system, state aid, and the CIR. We need the strength of numbers in our membership to continue to have that same influence.

It was not that many years ago that health care in schools was managed by the NSEA. Both the NASB and NCSA were asked to join NSEA in being There are hidden benefits to a partner. Thus, the membership in NCSA.The Educators Health Alliance was cremost tangible benefit from ated. NCSA has six NCSA may simply be the representatives, three of whom opportunities for networking have a vote, on the with one’s peers. … NCSA EHA Board of Directors.

Several provides us with these years ago I was networking opportunities. asked to represent NCSA on the EHA 8

NCSA TODAY APRIL 2011

Board, and I continue to serve as a voting member and the recording secretary. Thus, I have had the opportunity to be a part of NCSA’s presence in defining the health care plan that is available for not only our members, but members of NSEA and other educational groups as well.

When compared to most other states, educators in Nebraska have access to a much better health insurance plan. This could only happen because of an alliance between NSEA, NASB, and NCSA. Without this alliance, educators would likely be looking at a plan that is much inferior to what currently exists as boards of education and administrators would not have supported the plan.

Again, NCSA is at the table helping to make this happen.

As stated earlier, NCSA has had a voice in retirement issues. As with health insurance, Nebraska educators enjoy a superior retirement plan compared to educators in most other states. One of the main reasons for this has been the leadership of NCSA in helping to define the rules governing the retirement system and to advocate for enhanced benefits. Several years ago administrators, especially superintendents, came under fire regarding retirement issues. NCSA had a direct hand in helping define the solutions. The current retirement system is fairly healthy, but there are concerns. NCSA is a strong voice during this legislative session in helping to protect the viability of this outstanding plan that all of us will benefit from someday.

One of my best sources of information in my work is the NCSA web page. Mike Dulaney has been the guiding force in developing one of the most user friendly websites available. From the home page one can find help in a wide variety of subjects: health insurance, legislative issues, legal briefs, instructional webinars and videos, and even a dissertation archive. This service, as well as text and twitter possibilities, puts NCSA on the cutting edge of technology. The work done in this area is a great example to each of us in our administrative work on how to improve in communications.

NCSA has grown immensely under the leadership of Mike Dulaney, Dan Ernst, and Kelly Coash-Johnson in the area of training. When I first entered the field of administration I would go to Administrators’ Days and the occasional legislative seminar. Now, with a focus on helping our members improve themselves, we have legal seminars, technology training for administrators, and other growth opportunities. I have personally observed (continued on next page)

AF FIL IATE LEA DERSHIP Reflections on NCSA Membership…(continued from page 8) the programs that NCSA has put together for both new and aspiring administrators. I wish these same opportunities had been available when I was a younger administrator.

Some of the most helpful advice I have ever received in my administrative career has come from within the office walls of NCSA. Currently, I count Dan Ernst as one of my most valued sources for information or advice. I had the opportunity to admire Dan’s work as a fellow superintendent and was very pleased when he joined the NCSA staff. His ability to look at things from the angle of a former administrator is invaluable. Because of his natural progression through the administrative ranks, he can be a resource to not only superintendents, but to other administrators as well.

One of the greatest sources of pride for me in NCSA is how well we work with both NSEA and NASB. NCSA really is the middleman on many issues. We want to do what is best for our teachers, but at the same time we see the issues that boards of education must address. We sometimes have to take the side of one or the other, but I believe most of the time NCSA really does serve the role of unifier. I believe the three organizations may be as close as I have ever seen them.

There are hidden benefits to membership in NCSA. The most tangible benefit from NCSA may simply be the opportunities for networking with one’s peers. I have learned so much from other members simply from chatting in the hallway during a break at a conference, or enjoying each other’s company in a hospitality room at Administrators’ Days, or sharing a ride to a meeting with other administrators. Some of my closest friends are administrators. I believe this is common for many administrators and the reason for this is simple. We understand each other and offer alternate angles to consider. This networking does not take place within the walls of our own schools. The networking takes place

amp Tech Boot C 11 20 9, May June 6, 2011

NCE Conference June 7-9, 2011 Cornhusker Hotel – Lincoln

ent NCSA Golf Tournam June 23, 2011 coln Wilderness Ridge – Lin

when we come together at workshops, conferences, and social gatherings. NCSA provides us with these networking opportunities.

This discussion cannot end at just the state level. Being a member of one’s national affiliate is also vitally important. I have served for the past two years on American Association of School Administrator’s Governing Board and have had the opportunity to see up close the work that my affiliate, AASA, does on the national level. I know that AASA is heard by our congressional leaders. The same is true for our other national affiliates. These groups are struggling to maintain membership. I know some of them are looking at ways in which they can corroborate. For example, AASA and NAESP are in the process of becoming partners in the same building. With the direction education seems to be heading on the federal level I believe it is more important than ever to have a voice on the national level.

I have always had a great appreciation for the work of the staff at NCSA. They do a remarkable job for such a small group. I have never called and not been able to get the help I was looking to get. In my estimation, this personal level of help is priceless.

Other organizations require members to go through layers and layers to find the proper help. Help from NCSA is just a phone call or an email away.

There are many more benefits of membership in NCSA than what I have identified here. I am simply sharing the benefits that I find to be most valuable. These benefits, though, do not exist without the strength of our affiliate organizations coming together under one umbrella—NCSA. Membership alone is not the total answer. Our organization is only as strong as the active participation of our members. I urge membership, but stress that to make the organization stronger and more vibrant, all members must take advantage of the opportunities offered. I

Bu lletin Board State Data C onference April 18-19 Younes Confe rence Cente r – Kearney

Hal Urban Workshop June 1, 2011 Grand Island Sr. High – Grand Island

Adm inis You tra A nes Con ugust tors’ D fere 3-5, 20 ays nce Cen 11 te r – Ke arn ey

11 ay 10, 20 oln GRIT M c in L Suites – Embassy

For more information or to register for any of these events visit http://ncsa.org or contact kelly@ncsa.org

APRIL 2011

NCSA TODAY

9

PRO GRAM SP OTL IGHT

College Readiness for All

BY ROB SLAUSON, Principal, Lincoln Southwest High School

M

Slauson

any don’t believe that most students are ‘college material’ and certainly not all students from low-income families and ethnic and racial minority groups. There isn’t a conspiracy to deny opportunity to anyone; it’s just a sort of understated belief, something that exists as ‘common knowledge’ in the ‘everybody knows’ universe of unquestioned assumptions. Unfortunately, these assumptions are largely untested,” says Dr. David Conley, renowned college readiness expert, educator and author in an excerpt taken from an article last fall in AVID’s educational journal, ACCESS. If all students haven’t been challenged in the first place, it’s pretty hard to tell how many of them can actually get to the level of college ready….

Rather than debating the purpose of high school and whether everyone should be preparing to go to college, we need to just start doing it and let the evidence speak for itself. We can’t resolve this via debates and assertions. We need to put it to rest by means of effective programs, such as AVID, that move beyond assertions to actions.

Why AVID? Because AVID works. From the very beginning, AVID founder Mary Catherine Swanson knew

AVID Center Senior Collections (2005-2010) U.S. statistics: Manhattan Institute, Education Working Paper, 2003(most recent available)

that collecting information about the success of her students would be necessary to prove her theories and practice. Swanson, head of the English department in 1980 at her newly integrated high school, set out to prove that with academic support and rigorous college preparatory classes, her lower income and minority students could do just as well as her more affluent white students.

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NCSA TODAY APRIL 2011

Her colleagues were more than skeptical. Fast forward to 2011, more than 30 years and 400,000 students (per year) later, data proves again and again, that the AVID system works.

What differentiates AVID from other educational reform programs is its astounding success rate. Of the more than 22,000 AVID 2010 seniors who reported their information, 99.6 percent graduated from high school with 91.3 percent planning to attend a post secondary institution; 58.3 percent in four-year institutions and 33.0 percent in two-year institutions.

AVID also closes the achievement gap. Note in the chart, “Completion of College Entrance Requirements,” that with AVID students, the ethnic group differences were within six percentage points, whereas the national statistics showed variances as great as 28 percentage points. Additionally 74 percent of the seniors reported taking at least one AP or IB course with 61 percent taking the corresponding exam.

2009-2010 AVID Students Student Group Economically disadvantaged African American American Indian Asian Hispanic or Latino White

Percent 62 20 1 5 49 21

Leadership first It’s been said, “To change students, we must change teaching.” [Note: it says: “teaching” not “teachers.”] If the goal of education is to ensure that students have choices about their future, that their opportunities are not limited because of education they did NOT receive, then education leaders must take the lead and insist that all students are prepared for college.

From school board trustees, to superintendents, to principals, all must believe that every student is capable of achieving college readiness and work to that end. The unspoken innuendo that because of economic status or ethnicity some children can’t succeed must stop. No longer can one student be asked what they intend to study in college and another be asked if they are going (continued on page 12)

PRO GRAM SP OTL IGHT

“Out-of-the-Box”

BY ANN AUTEN, Principal, Hawthorn Elementary–Hastings

M

anaging student resistance is a stressful and challenging task that can be extremely frustrating from a principal’s point of view; especially, when called as a last resort to manage this resistance: “The recess bell rings. A student refuses to come to the lineup, continuing to play. After warnings and threats of consequences, the recess teacher calls for assistance. The principal is ‘up to bat.’ The principal arrives on the scene knowing that this child comes from a history of neglect and abuse at home.”

It is important to first identify the purpose behind Auten the inappropriate behavior a child displays. Why does this child want to challenge authority? According to Dr. John Maag, a nationally recognized scholar and behavioral consultant, non-compliant behavior allows children to either gain attention, avoid a task they don’t want to do, or gain power by trying to irritate us. The form of the behavior—not coming in from recess—is the least important aspect to address. Instead, one must determine what purpose the behavior serves.

A student with a history of neglect may need to feel empowered, because he lacks positive feelings of self.

He wants someone to come and give him the attention he craves. A wise principal realizes that to give the child this attention is going to encourage the behavior to reoccur. The principal asks the recess teacher to bring in the other students and ignore the student who refuses to come. The principal stands behind a wall or watches out Show them where they the window always superviscan go to be safe. A ing the child. For a while the time-out place should child walks around, enjoying his freedom, although he never be used to punish looks towards the school ocbehavior. It should be casionally to see if anyone is used to settle down the coming. As time passes, he constantly looks for someone “survival” brain so you to come and get him. He fican talk about the nally decides to come to the effect of a child’s door of the school, which is behavior and teach locked. He pushes the buzzer and asks to come in. He them new strategies to hears the principal’s voice tell solve problems. him that since he chose to

stay outside, he can stay outside longer. Of course, this is not what the child wants and his plan has backfired.

No attention is received. After a few more minutes of anxiety in not being able to enter the building, the student is allowed to come in. Before returning to class, he processes with the principal why this behavior was inappropriate and what he should do the next time. Perhaps, they go outside to practice. By taking away the attention the child hoped to gain, he will probably not try this technique again. If he does, the same process is initiated again to “outlast” the negative behavior.

Using traditional punishment for negative behaviors can result in a child who will continue to be highly uncooperative. The need for attention, negative or positive, is stronger. Creating rapport with a child when acting appropriately, is very effective in later obtaining compliance from a child.

Children need love and support, especially when they do not deserve it. When children become upset, there are four levels of stress they experience. First, they become anxious. This is the time that one can talk with the child and give alternative solutions. When a child moves into a defensive mode, there is no point in talking about solutions. This is the time to ask a child to move to a safer place without having any conversation.

In fact, walking in front of the child as if they will follow can be effective—remember walk don’t talk! With younger children, holding their hand and walking quickly does not give them much choice but to follow you. Intervention must take place at the first two stages, before the child enters the aggressive or dangerous stages. An effective strategy is to practice with a child when they are not in an anxious state. Role-play steps to change a negative behavior. Show them where they can go to be safe. A time-out place should never be used to punish behavior. It should be used to settle down the “survival” brain so you can talk about the effect of a child’s behavior and teach them new strategies to solve problems.

With high stakes testing in every public school system, we cannot afford to give consequences in which students miss classroom learning time. We must use creative strategies to match and change the negative behavior. For example: • A student writes on bathroom walls; he cleans them (continued on page 12) APRIL 2011

NCSA TODAY 11

PRO GRAM SP OTL IGHT Out-of-the-Box…(continued from page 11) during recess with the custodian. The custodian should discuss his feelings about the extra work this causes for him, giving the child a reason to stop the behavior and develop a relationship.

• A student refuses to do his work; the student is asked to go to a “do-nothing” chair. When a fun activity comes up, the student’s behavior is “saturated” by telling him he can still “donothing” since this is the behavior he has chosen.

• If a student comes to school “in a funk” every morning, set up a triage time to help in the office creating a relationship the child needs and a positive role in the school setting.

• Two students fight on the playground…both lose a week’s worth of recesses working together to pick up trash or scoop snow. We often make the mistake of using in-school suspension for this behavior, which a student may actually prefer!

Other “out of the box” strategies may include: • Encouraging movement to de-stress a child.

• A hungry child needs to eat; a tired child needs to sleep.

Learning will not take place until primary needs are met. A fifteen-minute rest time with a snack can bring a child back to a learning mode.

• When removing a young child from a negative situation, they are often embarrassed by their behavior. Bring a blanket and let them cover themselves as you lead them to a safe place.

They will move!

• A teacher’s roller chair can also be used to move a younger child…this is very effective with autistic children.

• Allow a child to carry a stress ball or stuffed animal when mov-

ing to a safe spot. Use visual timers to give children a few minutes to think and process.

Reinforcements are also very important. For example, if a child does not move quietly to a safe spot, use a sticker chart to reward the child for moving quietly. Give the child time to de-escalate by coloring or drawing, playing with trains or legos, working puzzles, or provide a place with soft lighting or quiet music. Many children have sensory issues and it is useless to address negative behaviors until a child is not in the anxious stage. Some principals may question the use of these techniques, seeing them as rewards for the inappropriate behavior. The child should still receive appropriate consequences for negative behaviors after reaching a calm state. Consequences might include writing an apology, losing a favorite activity, or sending a note home to parents.

In summary, no one strategy fits all. Identify a purpose for a negative behavior and avoid giving attention for this behavior. A visit to the principal’s office to share the day’s behavior point chart can be very effective and creates a positive relationship with the principal. Time invested to build rapport or address sensory needs will be time well spent. I

College Readiness for All…(from page 10) to college. Expectations must be the same for all students. This belief must penetrate the organization, and it starts at the top.

The key, and this is where AVID comes in, is connecting with students who come to school with educational disadvantages (for whatever reason); teaching them the skills they need to be successful, and giving them the support and encouragement they need to reach their goals. AVID trains more than 20,000 educators annually in pedagogy to engage students in rigorous coursework that helps prepare them for college. The AVID elective class focuses on developing academic abilities while building a safe peer group. The beauty of AVID is that it doesn’t stop at the AVID classroom; as faculty are trained and imbed AVID strategies in classrooms throughout the school, all students are able to take advantage of the skills AVID teaches. It

12

NCSA TODAY APRIL 2011

is amazing to witness the transformation that occurs as the culture of a school changes and students become engaged in learning for their future.

Fort Lupton Co. Middle School principal Willard Tucker upon receiving the National Association for Middle School Principals, School of the Year award for 2011 stated that, “AVID played an important role for us in receiving this award. The AVID strategies our teachers are using have had a significant impact on our students.”

AVID is the leader in successful college-preparatory programs for low-income, overlooked and underserved students, and today reaches more than 400,000 students in approximately 4,500 schools in 47 states and 16 other countries/territories.

I

SCHO OL VISITATIO N

The Day the Governor Went to High School

BY DR. KENT B. MANN, Principal, Grand Island Senior High School

I

Mann

f you are an admirer of President Abraham Lincoln, you will likely recall the story of why he chose to wear a beard in the later part of his political career.

Apparently a young school girl wrote a letter to the President and suggested that he would look much better if he wore a beard. Lincoln took the advice to heart and, as you know, the rest is history. A few months ago, NCSA Executive Director, Dr. Mike Dulaney, suggested that Governor Dave Heineman “walk the halls” with a principal and gain a closer look at what happens daily in a Nebraska high school. The Governor did just that. On January 25, 2011, he cleared his schedule and spent the morning at Grand Island Senior High.

We began our day at 7:45 a.m. with the Governor s arrival at Senior High and went immediately into the hallways of the school so that he could meet our students.

As we walked the corridors to the 200 Wing intersection (the busiest place in the building every 50 minutes), our Latino, Sudanese, Somalia, Native American, and White students met and greeted Governor Heineman. In addition to the crowded hallways, he noticed that our school has become a school of color and diversity. As the students passed by, we talked about the home environments they live in, the challenges that students of poverty confront every day, and the pressures and demands that the youth of our state face.

During the first part of the morning, we visited c l a s s ro o ms.

The Governor stopped by

and met 24 students in an ELL class. The students were from four different countries in Central America, refugee camps in Sudan, and from the war-torn cities of Somalia. The class was a social studies class and some of the students recognized the governor’s job as one of many in the governance of our state and country. He was asked for an autograph as well! We talked about the difficulties that ELL students may encounter in high school and how many students do not have enough time to graduate with their cohort group. He met students who will earn a high school diploma, but who will also be counted as a drop out on the NDC State Report because they needed more than eight semesters to finish their high school course of study.

During 1st Hour, we also sat in on an Astronomy class.

As one of only two high schools in the state to have a planetarium, we like to showcase our Astronomy, Practical Astronomy, and Astro Physics classes. The Governor got to see a class of 34 students engage in a constellation identification formative assessment activity, watched as the view of the skies from the North Pole was compared with the view of the skies from Grand Island, and learned the name and location of the only star in our universe that never moves. He was also challenged to make some quick stellar calculations to help understand why many of the stars that we see at night no longer exist TM 2 (it is because by the time their light gets to earth, the star has burned out and turned into a black hole.) The Governor was impressed with the class by the time we departed. In route to our next stop, we had a chance to talk about the state s financial crisis and how the loss of state aid will impact schools. I noted that we would not be able to operate the planetarium and offer these science courses if state aid is severely cut next year.

Later in the morning, we visited the Student Wellness Center. Governor Heineman learned about a collaborative partnership with St. Francis Medical Center in Grand Island and Senior High. The Wellness Center has a staff of two mental health counselors, a nurse practitioner, and an office manager who provide medical and mental health services to over seventy percent of our total student population. As we walked the halls and visited other classrooms, we talked, in length, about the challenges of (continued on next page) APRIL 2011

NCSA TODAY

13

SCHOO L VIS ITATION Governor‌(continued from page 13) making a large school into a place where everyone is recognized and wants to belong. We talked about the many ways teachers advocate for students, how teachers mentor, encourage, support and love their students in and out of the classroom. We were able to put real names and faces with real-life situations and circumstances. The Governor was very interested in our OASIS period, a 15-minute homeroom period at the beginning of the day. During OASIS, we spend time daily talking with students about positive attitudes, responsible behavior, and making good choices. On the way to the office near the end of his visit, we walked through our gallery of Competitors, Contenders, and Champions. I had the opportunity to tell the Governor some of our many stories of success, triumph, and student achievement.

The last portion of our day with the Governor was spent with the administrative team. We shared our job responsibilities and talked at length about public education and the challenges facing schools in Nebraska and the nation. Our discussion included issues like the impact of poverty on students, ELL program limitations, the foolishness of the U.S. Dept. of Education’s plan to improve failing schools, and possible legislation in Nebraska that would link eligibility for a driver s license to positive school at-

tendance and academic performance.

When President Lincoln interacted with that young, schoolaged girl, the ensuing exchange impacted his political career and became part of his presidential legacy. I really don t know if any of our students gave Governor Heineman any fashion or grooming advice. However, I do know that our Governor was willing to spend a good portion of his day in our high school interacting with Nebraska high school students, teachers and administrators. His willingness to listen and learn more about the functions, issues, and concerns that impact our school was a very powerful political statement. We were honored to host Governor Heineman at Grand Island Senior High School. The state is very fortunate to have a Governor who is willing to “walk the halls� and learn more about Nebraska high schools. I

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NCSA TODAY APRIL 2011

FA MILY MATTERS

What Will Happen When You Die? Five Things You Need to Do

BY JACKIE M C GRAIL, The Horace Mann Companies

L

ife insurance is the cornerstone of a solid financial plan, and it protects your loved ones against financial loss if they lose you and your income. But life insurance is just one way you can help your family ease the emotional stress that comes with the loss of a loved one. Take action now to let your family know your wishes and how to execute them.

Consider these steps offered by the nonprofit organization Life and Health Insurance Foundation for Education (LIFE) to help you get your financial affairs in order so you can rest easy knowing your family will be taken care of if you die: Make it a family affair. Be direct when talking with loved ones about this difficult topic. Keep the conversation private, in a setting where everyone feels comfortable and involve as many immediate family members as you can. Then talk through worstcase scenarios to find out what everyone’s concerns are and needs would be, financial and otherwise. This could include identifying who would take care of your children if you and your spouse died or evaluating how much money your family would need upon your death to meet ongoing living expenses and fund future plans. Answering these questions will help ensure that your family is taken care of no matter what twists and turns life brings.

Pay it forward. Purchase adequate life insurance for you and your spouse now to help your family avoid financial pitfalls later.

Having the right amount of coverage will help ensure that your family’s dreams can be realized even if you’re not there to witness them. How much and what kind of life insurance to buy is based on a number of factors, so seek assistance from a qualified insurance professional.

Where there’s a “will” there’s a way. Make a will and update it periodically. Make sure it specifies executors, trustees, and guardians for dependent children. Don’t forget to get a living will too (health care directive) to make sure loved ones know whether or not you want to be kept on artificial life support.

Similarly, you should designate a power of attorney—someone authorized to manage your affairs, typically financial ones, if you’re not able to handle them yourself.

Rest in peace. Decide on your preferences for final arrangements including your funeral, type of burial, where you would like to be buried and whether you want to be an organ donor.

Write your wishes down and make them known to family and close friends.

Make a list and check it twice. Create a list with all key fi-

nancial information, such as bank account numbers, mortgage, and insurance policies. In addition, write down where important non-financial information and valuables are located, including birth and marriage certificates, titles and deeds and safe deposit box keys. Don’t forget to include contact information for all of the professionals who help with your financial and legal affairs, such as your insurance advisor, attorney or accountant. Lastly, keep copies of the list in a safe place and make sure family members know how to get to it.

Protecting your family against the loss of your income begins with life insurance. Talk to an insurance professional today and get started on your life insurance plan. I

APRIL 2011

NCSA TODAY

15

HEALTH CA RE

HRA Equals Savings for Both District and Employees

BY MIKE BODEN, National Insurance Services

A

723-employee school district was paying out an average of $1,260,000 per year in accumulated unused sick leave and accrued vacation as an early retirement incentive to their teachers.

The IRS considers the disbursed checks as normal payroll; therefore, the district had to shell out an additional 7.65% FICA tax that cost another $96,360. The incentive also lost value for the teachers because it was subject to withholding tax in their current tax bracket.

The district’s Business Manager attended a seminar where she learned that if she deposited the incentive into an HRA (Health Reimbursement Arrangement) instead of normal payroll, it would result in a win-win situation for the district and the employees. In addition to the district saving over $96,000 in FICA tax, the retiring teachers received the full amount of the incentive without the normal tax withholdings. In some cases this change resulted in savings of as much as $10,000 to $15,000 for the retiring employee. The teachers were also pleased to learn that the funds roll over every year and accrue interest because there is no “use it or lose it” provision.

The retiring teachers at this particular district can now use the HRA funds not only to pay for their medical expenses, co-pays and deductibles; but also premium payments on their retiree medical insurance as well as medicare supplemental insurance. There are no requirements that prevent them from qualifying, such as being covered by a high-deductible medical plan, nor is the plan contingent upon a spouse’s access to a certain type of medical plan or Flex Spend Account as there is with an HSA (Health Savings Account).

What is an HRA? An HRA is an employer-established account used to pay for an employee’s eligible medical expenses and premiums on a tax-free basis. The funds in these accounts roll over annually; therefore, monies are not forfeited.

Additionally, these plans serve to increase an employee’s responsibility for and ownership of medical expenses and savings.

What can an HRA be used for?

HRA’s have helped hundreds of school districts and educators save by: • Providing incentives for employees to retiree early.

• Using an HRA to pay early retiree incentives or timeof-separation pay.

• Requiring new hires to participate in higher deductible medical insurance plans with HRAs while leaving other employees on more traditional plans.

• Steering employees toward the higher deductible and possibly more sustainable medical plans (such as the EHA Dual Choice Plan) by offering an HRA as an incentive.

• Promoting consumerism in health care decisions.

HRA Advantages There are many advantages for school districts to use an HRA including: • No FICA Tax. The district and employee each permanently save 7.65%.

• Tax-Free Use of Funds. The HRA is used to pay for eligible medical expenses and funds are not subject to income tax.

• Interest. Account balances accrue compounding taxfree interest.

• No Penalties. Funds can be accessed for eligible medical related expenditures and premiums at any time without penalty (subject to the district defined vesting schedule).

• Investment Choices. Choose from Fixed-Interest or Variable Investment options.

Use an HRA to Pay your Early Retiree Incentives at Time-of-Separation Pay Paying for accumulated sick leave, unused vacation pay, payments based on years of service or other retirement incentives can take a big chunk out of a district’s overall budget. Funds earmarked for these purposes can be directed to an HRA and payroll taxes can be avoided by both the employee and the employer.

Use an HRA with a High Deductible Health Plan Districts can use an HRA alongside the new EHA Dual (continued on next page)

16

NCSA TODAY APRIL 2011

HEALTH CARE HRA’s‌(continued from page 16) Choice option as an incentive for employees to elect the higher deductible plans. Often, districts will provide an HRA in the amount equal or close to the increase in deductible. Depending on the health needs of the plan member, this could be a wash or, in many cases, a better option for the employee by allowing him/her to create a nest egg for future medical expenses.

Some districts have also considered making a higher deductible plan a requirement for all new employees and using an HRA alongside the health plan. Depending on the district’s situation, this could prove to be a financially sustainable option.

Consumerism in Health Care Spending When using an HRA alongside an employer sponsored health plan, perhaps one of the greatest by-products is “consumerism�.

Americans tend to be savvy consumers of products and services except when it comes to medical services. This lack of consumerism can create runaway claims and drive premium increases.

Experts agree that to reduce costs, organizations must encourage prudent medical utilization.

Using an HRA encourages consumerism because the plan member has financial "skin� in the game. Traditional medical insurance plans do very little to encourage a consumer-focused approach in medical care spending. High deductible health plans

support smarter health care spending by encouraging plan members to shop for the best pharmacy prices, choose lower cost providers, eliminate duplicate tests and consider physician-recommended alternative treatment.

Considerations When Negotiating an HRA • Compare Provider Fees. Most plans have a small fee associated with it that may include reimbursement and administration fees. • Vesting Choices. Choose a plan with vesting options. One size doesn’t fit all. While immediate vesting is important in one particular application, it may not be relevant in another application. Look for a program that allows all three types of vesting: immediate, cliff and step-vesting. • Choose a Provider with Public-Sector HRA Experience. An HRA for a corporation is very different than an HRA for a school district. Choose a provider who has the public sector experience you need.

Affording health care is the number one concern of retirees.

HRAs can help ease some of that worry and make it easier for employees to retire, saving valuable taxpayer funds and healing wounded budgets. I

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APRIL 2011

NCSA TODAY

17

NCSA REPORT

Something to Celebrate!

BY DR. MIKE DULANEY, Executive Director; and DR. DAN ERNST, Associate Executive Director

M

Dulaney

Ernst

18

any times in the school business we fail to take the time to celebrate or at least appreciate the good things that happen. Most recently The Educators Health Alliance (EHA) Board of Directors, capitalizing on a soundly funded health insurance plan, voted unanimously to offer a zero percent (0%) increase on the premium rates for 2011-12. There will be no increase in health insurance premium rates for groups and early retirees participating in the EHA for the 2011-12 plan year, which begins September 1, 2011.

This action results in no reductions in benefits and actually adds new benefits as required by the provisions of the Patient Protection and Affordable Health Care. In addition, the EHA Board voted in favor of a plan to limit the increase for the 2012-13 plan year not to exceed more than 4% from the current rates.

This is the first time the EHA Board has taken additional action regarding rates for the following plan year. The rating decisions apply to all seven available active employee health plans, three early retiree benefit plans, and five dental plans. This additional action is designed to provide some measure of certainty for planning purposes, not only for the employers but also employees. NCSA, NASB and NSEA are proud of the collaborative efforts of many to offer this positive news in tough economic times.

There are a number of factors that have contributed to the rating decisions and include: • A significant decline in medical inflation trends; • Recent lower than anticipated utilization rates in hospital and physician services; • Pharmacy benefit management leading to reduced pharmacy trends; • A program designed to assist in the management of chronic diseases such as heart disease and diabetes; • Holding the line on health and administrative cost increases;

NCSA TODAY APRIL 2011

• The projected impact of the 2011 implementation of a state-wide wellness and health promotion program and; • Prudent management over time in the design and choices of benefit plans.

Participation, collaboration, and cooperation are tenets espoused as part of the EHA logo. NCSA, NSEA, and NASB as partners in the EHA have worked collaboratively to provide a quality health insurance program that meets the needs of plan members. The EHA Board

understands the financial issues before EHA plan members as well as the fiscal constraints facing school districts. We are thankful and most appreciative that the efforts of those involved with the EHA have resulted in the opportunity for “no increase” in rates for new plan year. Celebrate! I

CALENDAR OF EVENTS

APRIL 13 14-15 14-15 18-19 19 20 20 21 21 27 27 27 28

NASBO Golf Tournament NASBO State Conference NASES Spring Conference State Data Conference NSASSP Executive Board NASA Region I NSASSP Region IV NCSA Executive Board NSASSP Region III NSASSP Region I NSASSP Region II NAESP Region II NAESP Region IV

1:00 p.m.

8:00 a.m.

10:00 a.m.

9:00 a.m.

4:00 pm.

4:00 p.m.

2:30 p.m.

9:00 a.m.

5:00 p.m.

5:30 p.m.

5:30 p.m.

5:30 p.m.

12:00 p.m.

Wilderness Ridge Cornhusker Hotel Harms Center/ESU #13 Younes Conference Center NCSA Hillcrest Country Club ESU #10 NCSA Fairplay Golf Course Evening w/ Friends TBD River City Star Drew Heady’s House

Lincoln Lincoln Scottsbluff Kearney Lincoln Lincoln Kearney Lincoln Norfolk Milligan TBD Omaha Hastings

NASES Region II NASES Region III Tech Boot Camp GRIT NASES Region I

8:30 a.m.

12:00 p.m.

8:00 a.m.

8:00 a.m.

9:30 a.m.

Fremont Admin Bld TJ’s ESU #3 Embassy Suites NCSA

Fremont Norfolk La Vista Lincoln Lincoln

NAESP Executive Board Hal Urban Workshop NCSA Executive Board Tech Boot Camp NCE Conference NASES Region II NCSA Golf Tournament

9:00 a.m.

8:30 a.m.

9:00 a.m.

8:00 a.m.

8:00 a.m.

11:00 a.m.

12:00 p.m.

NCSA Grand Island Sr. High NCSA ESU #6 Younes Conference Center NCECBVI Wilderness Ridge

Lincoln Grand Island Lincoln Milford Kearney Nebraska City Lincoln

MAY 6 6 9 10 27

JUNE 1 1 2 6 7-9 10 23

NATIONAL CONVENTION DATES NAESP – April 7-10, 2011 – Tampa, FL ASBO – September 16-19, 2011 – Seattle, WA AASA – February 16-18, 2012 – Houston NASSP – March 8-11, 2012 – Tampa, FL NAESP – March 22-24, 2012 – Seattle, WA

20

NCSA TODAY APRIL 2011

Gold Sponsorships Alert Now

DLR Group

Horace Mann

SchoolFusion

Jeff Enoch 4000 Westchase Blvd. Suite 190 Raleigh, NC 27607 919-841-0175 jenoch@alertnow.com www.alertnow.com

Pat Phelan, Whitney Wombacher 400 Essex Ct., Omaha, NE 68114 402-393-4100 pphelan@dlrgroup.com www.dlrgroup.com

Cindy Dornbush 10612 Monroe Street, #4 Omaha, NE 68127 402-680-9382 cindy.dornbush@horacemann.com www.horacemann.com

Ameritas

Engaging Technologies

National Institute for Direct Instruction

Carson Apps 999 18th St., Ste 2150 South Tower Denver, CO 80202 800-906-0911 carson@schoolfusion.com www.schoolfusion.com

Al Eveland 5900 O St., 1st Floor Lincoln, NE 68510 402-467-6968 aeveland@ameritas.com www.ameritas.com

Dustin Frank 6157 S. 178th Street Omaha, NE 68135 402-677-6366 dustin@engagingtechnologies.com www.engaging-echnologies.com

Amy Johnston PO Box 11248 Eugene, OR 97440 877-485-1973 info@nifdi.org www.nifdi.org

John Baylor Test Prep John Baylor P.O. Box 30792 Lincoln, NE 68503 402-475-7737 john@johnbaylortestprep.com www.johnbaylortestprep.com

CDI Paul Copeland 130 South Town Centre Blvd.

Markham, Ontario L6G 1B8 pcopeland@cdicomputers.com www.cdicomputers.com

Innovation in Education –Houghton Mifflin Harcourt Donna Droge 6140 SE 53rd Tecumseh, KS 66542 785-554-9510 donna.droge@hmhpub.com www.hmlt.hmco.com

Learning Together Julie Smith 5509 B W. Friendly Ave. Ste 201 Greensboro, NC 27409 866-921-0000 julie@learningtogether.com www.learningtogether.com

National Insurance Mike Boden 9202 W. Dodge Rd., Ste 302 Omaha, NE 68114 800-597-2341 mboden@nis-sif.com www.nis-sif.com

NLAF Barry Ballou 455 S. 11th St. Lincoln, NE 68508 402-705-0350 balloub@pfm.com nlafpool.org www.nlafpool.org

TRANE Danny Szegda 5720 S. 77th St. Ralston, NE 68127 402-935-9040 dave.raymond@trane.com www.trane.com/omaha

Virco, Inc. Dan Atha 1230 Footprint Ct. Castle Rock, CO 80109 danatha@virco.com www.virco.com

Wells Fargo Jenni Christiansen 1248 O Street Lincoln, NE 68508 402-434-6188 jenni.l.christiansen@ wellsfargo.com www.wellsfargo.com

Silver Sponsorships Awards Unlimited Larry King 1935 O St., Lincoln, NE 68510 402-474-0815 larryking@awardsunlimited.com www.awardsunlimited.com D.A. Davidson & Co. Dan Smith 1111 N. 102nd Ct., Ste 300 Omaha, NE 68114 402-392-7986 dsmith@dadco.com www.davidsoncompanies.com/ficm

Bronze Sponsorships

Humanex Ventures Katie Shanahan 2900 S. 70th Street Park On, Suite 100 Lincoln, NE 58506 402-486-1102 katie.shanahan@ humanexventures.com www.humanexventures.com

ARCHI + ETC. LLC Cristy Joy 6500 Holdrege St., Ste 007 Lincoln, NE 68505 402-429-7150 cjoy@archi-etc.com www.archi-etc.com

Benchmark 4 Excellence Rick Imig 1411 Rodeo Bend Dickinson, TX 77539 281-910-0113 rick@benchmark4excellence.com www.benchmark4excellence.org

Jostens Don Bartholomew 309 S. 8th St. Broken Bow, NE 68822 308-872-5055 don.bartholomew@jostens.com

Crouch Recreational Design Eric & Nicole Crouch 6946 N. 97th Circle Omaha, NE 68122 402-496-2669 nicole@crouchrecreation.com www.crouchrecreation.com

Nebraska Public Agency Investment Trust Becky Ferguson PO Box 82529, Lincoln, NE 68501 402-323-1334 becky.ferguson@ubt.com www.npait.com

PRSRT STD. U. S. POSTAGE PAID LINCOLN, NE PERMIT NO. 951

Nebraska Council of School Administrators 455 So. 11th Street, Suite A • Lincoln, NE 68508-2105 RETURN SERVICE REQUESTED

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