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Budgetings For Results Comm. - Nov. 08, 2010


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School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

November 08, 2010

 

Call to Order

 

The Budgeting For Results Committee of School District No. 2, Yellowstone County and High School District No. 2, Yellowstone County, Montana met at Lincoln Center, 415 North 30th Street, Billings, Montana, on Monday, November 08, 2010. Committee Chair Joel Guthals called the meeting to order at 5:20 p.m. and led those assembled in the Pledge of Allegiance. Committee members present were Joel Guthals, Sandie Mammenga, Rod Gottula, Barbara Bryan, Connie Wardell, Tom Bick, Charlie Loveridge, Joan Sleeth, Paige Darden, and Deana Elder arrived at 5:35 p.m. Committee members absent were Kelly Donovan, Bruce MacIntyre, Peter Grass, and Don Stanaway.

 

Also in attendance were Thomas Harper, Dan Martin, Rob Rogers, Barb Buss, Greta Besch Moen, and Jeff Greenfield.

 

Communication from the Public

 

No one wished to address the Committee.

 

Consent Agenda

 

Rod Gottula moved to recommend the Board approve the Consent Agenda items as follows:

1. BFR Minutes of September 13, 2010

2. Addition of Saturday Live Teacher Grants Trust Fund Account at Washington

3. Addition of Dewey Hansen Grant Trust Fund Account through BPEF

Tom Bick seconded the motion.

 

Thomas Harper explained a Dewey Hansen memorial $2.7M donation was given to the Billings Public Education Foundation to use for our three high schools and Laurel. The Foundation will administer the funds and distribute the interest among the four schools annually. We have established an account to hold these funds.

 

The motion carried unanimously.

 

Bills Paid – October, 2010 (unaudited)

 

Chair Guthals stated the bills paid details are posted on the website and also on the School Board email; and, all bills paid for the month were reviewed and authorized in accordance with District regulations and are in compliance with school, state and federal laws, policies and procedures. Barbara Bryan moved to recommend the Board approve the Bills Paid for October, 2010. Joan Sleeth seconded the motion. The motion carried unanimously.

 

Financial Reports – October, 2010 (unaudited)

 

The Committee reviewed the Financial Reports for October, 2010 (unaudited). The year is 33% complete, and there are no significant variances. Thomas explained the Health Insurance Fund is a cash fund and is only budgeted as revenue is transferred for the employee and employer contributions when payroll is posted. We are on track with the 6% increase in health insurance costs that we budgeted for. Thomas explained 10% of our State funding is received each month, and tax revenue will be received at the end of November. The Retirement Fund is a County levy and will be received when we collect taxes.

 

Health Insurance Financials – September, 2010 (unaudited)

 

The Total Liabilities and Fund Balance as of Sept. 30, 2010 is $3,690,709.57. Revenues exceeded expenditures by $103,794.22 for the first quarter. The Other Postemployment Benefits (OPEB) liability as of June 30, 2010 is $7,721,000. This accrued liability measures the present value of all future benefit payments that the District has related to those current and future retirees and participants. The District is required to disclose this unfunded liability as a note in our year-end financial statements. The employer’s health care contribution is for single coverage. All employee groups have the same benefits. State law allows retirees to participate in the health insurance program.

 

Personnel Information

 

Executive Director of Human Resources Dan Martin gave an overview of the contractual agreements of the different employee groups and answered questions from Committee members regarding how budget cuts could affect District employees when programs or positions were eliminated. Dan said if there is a reduction in force it is important to do this by January or February for budget planning and for hiring better applicants if necessary. The last date to notice certified staff of layoffs is June 1st. We may have over 50 retirements this year. There is 150-200 non-tenured certified staff. There are about 1170 employees covered under the BEA contract.

 

MPEA and BCEA employees are laid off by seniority within their job category so long as they are qualified. They do not have a specific date they need to be notified by to be laid off. These groups are part of the Public Employees Retirement System (PERS). There about 125 MPEA and 450 BCEA employees. MPEA employees’ salaries are about par with the State average.

 

Administrators are certificated and principals have tenure. If Administrators are RIF’d they must be notified by June 1st. They will end up teaching in their qualified field, and State law allows them to be recalled with the first administrative vacancy. There are four steps in their salary matrix. Lincoln Center administrators are 12 month employees. Three-fourths of administrators are TRS and one-fourth are PERS employees. PERS administrators get benefits prescribed by State law. TRS administrators get benefits resolved by the Board. Administrators have no rights to bargain. There are 10 administrators above the principal level. Administrators have formal job descriptions and regular performance reviews.

 

There are 12-14 contract support employees that have benefits about the same as the other groups. They are not in the BCEA unit and have no bargaining rights and no seniority. They serve at the will of the Superintendent.

 

New Mission for the BFR Committee

 

Chair Guthals and Barbara Bryan reported as a result of discussions at Board retreats, the Board is working on reorganization of committee structure. That will result in a change of the mission and charge of the BFR Committee. The Board will work with the Superintendent on a different way of budgeting. They will set priorities on goals they want to accomplish and then have the Superintendent work with his executive staff to work up a proposed budget. Instead of coming through this Committee, the budgeting will be done by the Board through a new process involving public participation. The purpose of this is to improve efficiency, reduce the staff and committee workload, and promote public participation in the process.

 

Committee members expressed concerns that the new process may remove transparency and puts the process in the hands of a few; the loss of discussion and information to take back to various employee groups; loss of knowledge from community members on the Committee; and, the fact that previous public budget meetings were poorly attended.

 

Enrollment

 

This item will be placed on a future agenda.

 

Unfunded Liabilities

 

Thomas reported as of June 30, 2010 the District’s unfunded Compensated Absence (accrued vacation and sick pay) totaled $12,406,489. The District budgets $1.3M each year to pay vacation and sick pay for retirements and resignations.

 

The GASB27 unfunded actuarial accrued liability for service credit and termination pay is $33,870,596 as of June 30, 2010.

 

The GASB45 unfunded actuarial Other Postemployment Benefit liability for health insurance is $40,349,000 as of June 30, 2010.

 

The Total unfunded liability is $86,626,085 as of June 30, 2010. State law does not allow us to fund these liabilities completely. Historically, we pay as we go. Our compensated absence fund is funded if there is a general fund surplus.

 

Purchasing Procedures

 

This item will be placed on a future agenda.

 

Adjournment

 

There being no further business, the meeting was adjourned at 7:45 p.m.

 

 

 

 

 

 

Joel Guthals, Chair

 

 

 

 

Sherrill Sullins, Recorder

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