Business Committee Sept 12, 2005

[Guest sullinss]

Proceedings of the Business Committee

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

September 12, 2005

 

Call to Order

 

The Business Committee Meeting of School District No. 2, Yellowstone County and High School District No. 2, Yellowstone County, Montana was held at Lincoln Center, 415 North 30th Street, Billings, Montana, on Monday, September 12, 2005. Chair K. Dale Getz called the meeting to order at 5:32 p.m. and led those present in the Pledge of Allegiance. Committee members present were Randy Durr, Jerry Hansen, Dale Getz, Curt Prchal, Joel Guthals, Shanna Henry, Katharin Kelker, Joan Sleeth, Peter Grass, and Kari Altenburg. Also in attendance were Business Manager Thomas Harper, Dan Martin, Allan Audet, Elsie Arntzen, and other interested persons.

 

Principal Bob Whalen resigned from the Business Committee and Randy Durr, Dean at West High, was appointed as the Principals’ representative on the Business Committee.

 

Consent Agenda

 

Katharin Kelker moved to recommend Board approval of consent agenda items as follows:

A-1) Agreement for Use of Track Facilities at MetraPark with noted change on Part 5,b.5. and with the caveat that the cleaning fee be properly adjusted; and, A-2) Minutes of August 08, 2005. Joel Guthals seconded the motion. The motion carried unanimously.

 

Health Insurance Year-End Financial Report

 

Dan Martin, Human Resources/Federal Programs Director, reported the estimated “effective” Health Insurance Fund balance as of June 30, 2005 is $2,145,421. This fund is “adequately reserved” and is sufficient to pay over two months of claims run out. The paid/loss ratio for early retirees is $158.1% and $103.2% for Medicare retirees. Our Medicare Supplement Plan requires Medicare retirees to pay their own way. This group may eventually be moved into Part B. Plan C ($1000 deductible) participants are subsidizing the other Plans.

 

Curt Prchal requested that the Business Committee and the Insurance Committee receive Health Insurance revenue and expenditure reports on a monthly basis. Thomas Harper said the Balance Sheet and Revenue and Expenditures reports are available. Dan stated the Gallagher reports could be prepared monthly for a fee. A subcommittee is reviewing reports and trying to develop a way to electronically reconcile the billing and contributions with EBMS and the Insurance Fund.

 

Jerry Hansen asked why we paid out approximately $40K more in life insurance premiums than we received in revenue. Dan Martin replied it was under budgeted, and it’s an issue with negotiations. The health insurance subsidized the life insurance last year.

 

Trustees Financial Summary FY2004-2005

 

The Trustees Financial Summary Reports FY2004-2005 were presented for the Committee’s review. This is a statutory annual expenditure report required by OPI.

 

Budget Formation Process

 

The District retained Steve Struthers, Public Strategies Group, as a consultant to make a presentation on “Opportunities for Transforming the Billings School District Budget Process” through “Budgeting for Outcomes.”

 

 

The core of the process involves some of the following steps:

 

• Set the price – establish how much citizens are willing to pay for the results they want.

• Set the priorities - define outcomes that matter most to citizens, along with indicators to measure progress (polling, focus groups, public discussions, media, website feedback).

• Set the price of each priority

• Develop a purchasing plan for each priority – create “buyer teams” to act as purchasing agents for citizens.

• Solicit offers from providers to deliver the desired results – keeping outcome goals and strategies in mind.

• Buy the best, leave the rest – rank the offers in terms of results per dollar.

• Negotiate performance agreements with providers – frame budget as a collection of performance agreements spelling out expected outputs and outcomes, how they will be measured, consequences for performance (accountability).

 

Chair Getz stated recognizing the need to change the budget process and the need for consensus on budget objectives we can either borrow from the past and change our own process or utilize a resource to guide us through the process. A subsequent committee meeting will be held for further discussion and everyone interested in participating is invited.

 

Mr. Struthers will prepare a menu of services his corporation can provide with estimated costs for those services.

 

Financial Reports – July, 2005 (Unaudited)

 

The July, 2005 Financial Reports are in the process of being completed and were not available for review.

 

Adjournment

 

There being no further business, the meeting was adjourned at 8:50 p.m.

 

 

 

 

K. Dale Getz, Chair

 

 

 

 

Sherrill Sullins, Recorder