SPOTLIGHT STATE EMPLOYEES ASSOCIATION OF NORTH CAROLINA
BOARD OF GOVERNORS MEETING
MAY 17 - 18, 2019
TOP 3 TAKEAWAYS
1 The Clear Pricing Project Update Beginning January 2020, State Health Plan (SHP) payments for services will be based on Medicare reimbursement rates plus an average margin of 82 percent. This method, known as reference-based pricing, replaces the current practice of paying providers at secret rates that range from as little as 72 percent of Medicare rates to more than 900 percent. Hospital executives oppose the Clear Pricing Project: »» They have launched a campaign to strip the State Treasurer and the SHP Board of Trustees of their power to enact the change through House Bill 184. »» The House Health Committee held a hearing on Feb. 19 for stakeholders to explain their positions. Treasurer Folwell and the hospital executives were invited to testify, but Chairman Greg Murphy refused to allow SEANC to speak at the meeting. HB 184 passed the House in April, but the Senate has not acted on the bill. »» SEANC has held town hall forums in Greenville, Chapel Hill and Raleigh to allow members a chance to talk directly to Treasurer Folwell, legislators and the other side. To promote and defend the Clear Pricing Project, SEANC launched Affordable Healthcare for North Carolina (AHCNC). This nonprofit organization will: »» Inform lawmakers and the public about the Clear Pricing Project through advertisements, videos, social media, and more. »» Recruit other organizations and individuals to join our cause. »» Engage our supporters to take grassroots political action. »» SEANC members are urged to visit the site www.ahcnc.org — follow AHCNC on Facebook and Twitter, and share the video and other content with your friends, family and colleagues. The N.C. Department of Insurance approved contracts for providers to sign on to the Clear Pricing Project. Treasurer Folwell has begun working on signing hospitals and doctors onto the plan.
2 State Budget Update The House budget proposal passed on May 3 in a 61-55 floor vote with little debate.
WE CAN’T LET UP NOW! Visit SEANC.org/engage to contact your Senators and tell them: • The House budget is unacceptable. • Oppose Bill HB 184.
The budget proposes a raise of only 1% or $500, whichever is greater, for most state workers. Adding insult to injury, this raise would not take effect until Jan. 1, 2020, which is six months into the state’s fiscal year. Overall, the proposed budget allocates a measly $44 million for pay raises — less than 0.2% of the entire $24 billion budget. The budget bill does not contain a cost-of-living adjustment or supplement for retiree pensions for the coming fiscal year, even as lawmakers touted revenue surpluses and tax cuts for corporations. The proposal also severely underfunds the State Health Plan, containing just $39 million in the first year of the biennium. This will force the plan to spend the bulk of its reserves. The House budget also ignores wage compression issues throughout state government and fails to provide high enough salary increases for key hard-to-fill positions. Fortunately, this is not the final budget. The Senate will make its own proposal in late May. Continued on page 2
SEANC Board of Governors Meeting
May 17 -18 , 2019
TOP 3 TAKEAWAYS (CONTINUED) 3 Unqualified Opinion Audit for 2018 Jay Sharpe, CPA from Rives & Associates completed the FY 2018 Audit for SEANC and the Scholarship Fund. Both audits received an Unqualified Opinion, which is considered the best possible outcome. SEANC finished FY 2018 in the black and now has approximately nine months of operational reserves in the bank. Fewer than one in four nonprofit organizations have reserves for more than six months.
LEADERSHIP REPORTS President’s Report — President Jimmy Davis Pres. Davis brought to the BOG a motion from the executive committee to move members in Polk County from District 2 to District 4. This motion came at the request of District 2, which feels that District 4 can better serve those members. The motion passed. Pres. Davis called on Second Vice President Kirk Montgomery to discuss options of purchasing laptops for each district. Those options can be found in the Post-BOG e-packet. A Resolution of Comfort and Respect document for deceased SEANC members has been created and will be given to the families of deceased SEANC members who showed exemplary service to the organization. Executive Director’s Report — Executive Director Robert Broome Work is proceeding on schedule and on budget to select and implement a new Association Management System (AMS) for SEANC. Since the last Board meeting, SEANC has worked with our AMS consultant to: »» Conduct a business process review and needs assessment for SEANC. »» Identify criteria for AMS vendor selection. »» Develop an RFP for AMS vendors. »» Pre-screen AMS vendors whose products most closely match our requirements. »» Identify potential vendors for a new Financial Management System (FMS) concurrent with the RFP development process. Most of the RFP is complete, and staff is finalizing the checklist for functional and performance-based requirements. Vendor demonstrations are scheduled for early July. Next steps will include reviewing RFP responses, selecting a platform, and negotiating a contract. We remain on schedule to implement a new system by the end of 2019. SEANC is going to be the sole sponsor of the “Fair Photo of the Day” contest at this year’s State Fair. SEIU International Executive Board will meet on June 3-6 in Minneapolis. Theme park tickets are on sale at the State Employees Credit Union. Water Country tickets are available to purchase exclusively at the SEANC Office. Treasurer’s Report — Treasurer Chevella L. Thomas General Treasurer Chevella Thomas reported that revenue and spending for the association for 2018-2019 is on target.
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SEANC Board of Governors Meeting
May 17 -18 , 2019
COMMITTEE REPORTS Audit — Chair Linda Rouse Sutton Committee members, SEANC staff and Jay Sharpe of the auditing firm Rives & Associates, met on April 30 to discuss the audit that was performed. Next meeting — June 6 at 10 a.m. Awards — Chair Pam Hailey Nomination forms for District Chairperson of the Year, Distinguished Service, and Member of the Year are now available online at www.seanc.org/awards. » Members are encouraged to submit nominations using the online form, or they can download a printable PDF version that can be submitted by email to awards@seanc.org. » A member from any district may submit nomination forms. District of the Year nomination forms must be downloaded and mailed to the attention of Beth Dew at the SEANC Office. Deadline for awards nominations — Saturday, July 27 at 5 p.m. Awards Judging — Aug. 6 at 10 a.m. Benevolence — Chair Deborah Fleming The committee has sent 128 Sympathy and Get Well cards to date. Please send the names of deceased members including their complete mailing addresses to seancbenevolencechair@gmail.com. Send photographs of recently deceased members to Director of Communications Jonathan Owens at jowens@seanc.org and copy Deborah Fleming at seancbenevolencechair@gmail.com no later than Aug. 15 for inclusion in the memorial presentation at convention. Bylaws — Chair Kim Martin Amendments must be submitted to the SEANC Office within 10 days of a district’s annual meeting, but no later than July 15. Advisory Meeting — July 23 at 4 p.m. State Bylaws Meeting — July 24 at 10 a.m. President Davis stressed the importance of district attendance at these meetings. DHHS Study — Chair Sonya Akbar; Report given by Second Vice President Kirk Montgomery Surveys were sent out to DHHS workers. Thus far, 62 surveys returned. The committee plans to resend the survey, so everyone receives it. Next meeting — May 31. DPS Prison Reform — Deborah Harney Committee members visited Connecticut recently to tour a prison and learn about the T.R.U.E. Program www.vera.org/through-their-eyes. This Massachusetts jail is transforming incarceration for young adults with an innovative unit called P.A.C.T. — People Achieving Change Together. Emerging Leaders — Chair Emily Jones Community Service Project — May 11 in Morganton. Thank you to Districts 5, 6, 7, 17, 18, 21, 25, 26, 41, 44, 65, 69 for support either by sending someone from the district or by donating to fund the event. Leadership North Carolina Scholarship — Four people applied for $8,000 scholarship. Hashtag Lunchbag — May 31 at 9 a.m. at SEANC Office. R.S.V.P. to District 42 member Tracy Webb at 919-455-5775.
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SEANC Board of Governors Meeting
May 17 -18 , 2019
COMMITTEE REPORTS (CONTINUED) EMPAC — Chair Mark Dearmon Members are encouraged to hold their legislators accountable for their votes! Go to votespotter.com to see how your legislators voted. Participate in SEANC calls-to-action. This is especially vital for HB 184 which would delay the Clear Pricing Project implementation until 2021 and would cost the SHP and plan members almost $1 million per day starting in January in lost savings. Go to EMPAC.SEANC.org to increase your EMPAC contribution. » New Investor Drawing — EMPAC water bottles will be given to everyone who becomes an investor or increases their investment. They will also be entered in a drawing for a chance to win a $50 Visa gift card. For every 50 members who invest or increase by at least $3 per month, we will add another $50 gift card. Higher Education Study — Chair Mark Dearmon SEANC representatives attended: UNC Staff Assembly (leadership of employee groups in UNC System institutions) March meeting. NC CUPA (professional association for human resources professionals in higher education) Conference in Wilmington. UNC Staff Assembly Chancellor’s Cup Golf Tournament — SEANC served as the Presenting Sponsor. Fifteen SEANC districts contributed almost $8,000 towards the $10,000 cost. » The UNCG Chancellor attended the tournament. SEANC Director of Legislative Affairs Ardis Watkins was given the opportunity to speak to him about SEANC gaining access to the university. Insurance Board of Trustees — Chair Janice Smith The Insurance Board of Trustees met on April 17 to review and discuss the FY 2020 insurance budget. The Board continues to look for new options and opportunities for members to enroll in each of the insurance products. The goal is to attract younger members. The Insurance Department has obtained designation as a Call Center for our new Boston Mutual products. This designation will allow SEANC to enroll members year-round instead of on a quarterly basis. The call center is scheduled to begin accepting enrollments on June 1. Next meeting—July 31 at 10 a.m. Member Discount — Chair Tim Southard The member who recruits the most businesses between May 20 and August 15 will receive a $100 Visa gift card. Information about member discounts and the PerksConnect program is available online at www.seanc.org/discounts. The number of new business member discounts between Feb. 25-May 10 was 36. District 42 member Tracy Webb won four Carowinds tickets and one night hotel stay for recruiting 21 businesses. The current business recruitment contest is from May 20-Aug.15. The winner will receive a $100 gift card. The Convention awards for the top three recruiters are: $350, $250 and $150.
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SEANC Board of Governors Meeting
May 17 -18 , 2019
COMMITTEE REPORTS (CONTINUED) Membership — Chair Spillman Grice Since the February Board of Governors meeting, SEANC has recruited almost 1,000 new members. Staff worked with district chairs to host several successful events recently, including: » Wake County Blitz — 53 new members. » Buncombe County/Burke County Blitz — 24 new members. » Cherry Hospital — 39 new members. » DPS Basic Correctional Officer classes — 50 new members Member Recruitment Incentive Plan awards SEANC members with $5 for every new member they recruit (minimum of four new members required). Recruiter/New Member Challenge — June 1-Aug. 30. Everyone who recruits a new member during that time will be entered in a drawing for an Apple iPad. Planning — First Vice President Martha Fowler The budget will be presented at the July BOG meeting Districts will receive proposed SEANC budget two weeks before Convention for review. Next Meeting — June 12 at 10 a.m. The IBT budget is due Aug. 15. Policy Platform — Chair Betsy Lee Hodges District Policy Platform chairs were sent an email regarding the objectives that are due for deletion. Please encourage discussion at your district meeting and among all district members for other objectives to be considered at Convention. Advisory & Statewide Committee Meetings — July 25. » The Advisory meeting begins at 10 a.m. » The statewide meeting begins at noon. Retiree Council — Spillman Grice spoke for Chair Benny Brigman Next meeting at — July 18 at 10 a.m. Mass Mutual Insurance and Gerber Insurance will offer final expense policies to our members. Scholarship Foundation — Chair George Thiessen Scholarship awards judging — May 21-23 Retiree Grandchild Scholarship — Ten scholarship applicants will be awarded. These scholarships will also be judged on May 21-23. Annual Bowl-A-Thon www.seanc.org/seanc-bowl-a-thon — July 27 from 1-3 p.m. (after BOG meeting). Lanes are still available, and the Foundation needs items for the silent auction. To make a donation or reserve a lane, please contact Phyllis Perry at pperry@seanc.org. Races for the Foundation Board will be held in all five regions. Submit biographies to George at gthiessen7605@nc.rr.com. Districts are encouraged to sell their raffle tickets and bring all tickets, sold or not, to Convention.
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SEANC Board of Governors Meeting
May 17 -18 , 2019
COMMITTEE REPORTS (CONTINUED) SEIU Study — Chair Cliff Johnson The committee completed work and delivered the report to the BOG. The report and supporting documents are available at www.seanc.org/member-only. SEIU affiliation will be discussed on Thursday at Convention. Standards Review — Chair Tara Minter The proposed changes to the SEANC Operations Manual is completed. Changes will be sent to Executive Committee and BOG prior to next BOG meeting. Training — Chair Steve Lawson The Advanced Leadership Training conducted in April was a success. Convention training topic ideas are requested. Email Steve at slawson50@triad.rr.com and Tiffany at twoodard@seanc.org with your ideas by close of business on June 14. The mentoring program in the preliminary stages of development. Leadership Development Training — Oct. 24-26, 2019 at SEANC Office. District Chair Training — Thursday before November BOG (primarily for new chairs). District Treasurer Training — Wednesday afternoon at Convention.
CONVENTION DEADLINES Meetings and Convention Planner Tiffany Woodard announced several deadlines for districts ahead of the 36th Annual SEANC Convention Rise Up! www.seanc.org/convention scheduled for Sept. 4-7 in Greensboro. The deadlines are: July 19 » District Delegate Registration/Rooming List. » Hospitality Room Preference » District Table Reservation $15 per day (18 available). July 27 » Awards Submissions. August 14 » Banquest R.S.V.P. and ticket sales deadline. » Remembrance information/photo submission.
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SEANC Board of Governors Meeting
May 17 -18 , 2019
KEY MOTIONS Motions from Board of Governors PASSED — To approve the BOG minutes from February 22–23, 2019. PASSED — To transfer Polk County from District 2 to District 4, effective immediately. This is to better geographically align Polk County with District 4 in order to receive adequate coverage. PASSED — To approve a change in the Operations Manual to have the Insurance Board of Trustees Chair present a balanced Insurance Fund Budget to the Planning Committee Chair by August 15 of each year after the general fund budget has been approved. The General Treasurer and Planning Committee Chair shall present a completed initial balanced budget to the full Planning Committee no later than June 15, for their review, revisions if necessary, and approval for recommendation to the Executive Committee. PASSED — To place six months of reserves into an interest earning CD or similar instrument. PASSED — To accept and implement the use of the Resolution of Comfort and Respect to be signed by the President of SEANC to become effective February 8, 2019. Wording may be slightly modified to fit the individual or situation. PASSED — To accept the findings and recommendations of the Audit Report. The Treasurer, Finance Director, and the Executive Director will prepare a report to address the listed issues and provide that progress to the Audit Committee by the next BOG meeting. The President and Treasurer should provide a response to the findings and sign the management letter. PASSED — To include two years of data on financial statements. PASSED — To increase the capitalization policy of the Association to $2,500 to become effective October 1, 2019. PASSED — To approve the purchase of computer software by the SEANC Office for districts and to increase the IT software line item by $22,638 from the projected surplus of $615,000. PASSED — To delete the listed members off of the Delinquent Membership List effective October 1, 2019. PASSED — To transfer $10,000 into the Emerging Leaders line item account in order to assist with finishing out projected expenses for the year. PASSED — To accept and approve the recommendation from the Insurance Board of Trustees for the final expense products from Mass Mutual and Gerber. PASSED — That the SEANC Scholarship Foundation establish a link on the Foundation webpage to allow members to make monthly payroll deductions to the Scholarship Foundation for scholarship awards. Motions from the Executive Committee PASSED — To allow the Insurance Board of Trustees to keep $102,520 of the remaining reserve funds. PASSED — To mail out the complete proposed budget for review at least two (2) weeks prior to the established presentation date (July BOG) to the Board of Governors.
UPCOMING MEMBERSHIP EVENTS Membership Blitzes: June 10-14: Forsyth and Guilford counties July 15-18: Eastern Region DPS (Districts 58 and 67) August 12-16: Mecklenburg County
High Potential Agency Events: June 5: UNC-Chapel Hill Summer Splash June 6: Caswell Center June 18–20: Alexander Correctional Institution
NEXT BOARD OF GOVERNORS MEETING: JULY 26 - 27, 2019
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