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TIGHT REVENUE RETIREMENT PLANS THE FUNDING CLIFF ONE-SIZE-FITS-ALL APPROACH FAILS NCSA TODAY NCSA TODAY A PUBLICATION OF THE NEBRASKA COUNCIL OF SCHOOLADMINISTRATORS Nebraska Council of School Administrators April 2011 www.NCSA.org Tough Decisions Ahead TIGHT REVENUE Makes for a Balancing Act –Interview with Sen. Lavon Heidemann 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

NCSA Today Magazine, Spring 2011

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Page 1: NCSA Today Magazine, Spring 2011

TIGHT REVENUE

RETIREMENT PLANS

THE FUNDING CLIFF

ONE-SIZE-FITS-ALLAPPROACH FAILS

NCSA TODAYNCSA TODAYA PUBLICATION OF THE NEBRASKA COUNCIL OF SCHOOL ADMINISTRATORS

Nebraska Councilof School Administrators

April 2011 www.NCSA.org

ToughDecisionsAhead

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

RETIREMENT PLANSThe Goal is

“Long-Term Sustainability”–Interview with Sen. Jeremy Nordquist

THE FUNDING CLIFFFACT OR OR FICTION

–Doug Lewis, Assistant Superintendent,Papillion-La Vista Public Schools

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

Page 2: NCSA Today Magazine, Spring 2011

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ATE REPORTING WORKFLOW

EMPLOYEE SELF-SERVICE

ACCOUNTS PAYABLEGRANTS

Long-Term Value is ourCustomer for Life Philosophy

The most trusted Financial and Human Resources software, services and support in K-12.

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IL_ASBO SPRING/2011

Page 3: NCSA Today Magazine, Spring 2011

APRIL 2011 NCSA TODAY 1

FEATURES

NCSA MissionThe mission of the Nebraska Council of School Administrators (NCSA) is to be an effec-tive 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 11thStreet, Suite A, Lincoln, NE 68508. Telephone 402.476.8055 or 800.793.6272. Fax 402.476.7740. An-nual 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.

NCSA EXECUTIVE BOARD2010-2011

Chair . . . . . . . . . . . .Sarah WilliamsVice Chair . . . . . . . . . .Bill MowinkelPast Chair . . . . . . . . . . . Matt Fisher

NASA RepresentativesPresident . . . . . . . . . . . .Jack MolesPresident-elect . . . . . . .Greg BarnesPast President . . . . . . .Bill Mowinkel

NASBO RepresentativesPresident . . . . . . . . .Robin HoffmanPresident-elect . . . . . . .Dave KaslonPast President . . . . . . . . Rick Feauto

NAESP RepresentativesPresident . . . . . . . . . .Midge MougeyPresident-elect . . . . . . .David KrausPast President . . . . . .Sarah Williams

NASES RepresentativesPresident . . . . . . . . .Peggy RomshekPresident-elect . . . . . . . .Stuart ClarkPast President . . . . . . . . .Jane Byers

NSASSP RepresentativesPresident . . . . . . . .Randy SchleuterPresident-elect . . Mitch BartholomewPast President . . . . .Kenton McLellan

NARSA RepresentativePresident . . . . . . . . . . . .Ron Joekel

NCSA STAFF

Dr. Michael S. DulaneyExecutive Director/Lobbyist

Dr. Dan E. ErnstAssociate Executive Director/Lobbyist

Kelly Coash-JohnsonTraining and Development Director

Amy PoggenklassFinance and Membership Coordinator

Angie CarmanExecutive Administrative Assistant

Carol YoungAdministrative Assistant

Elisabeth ReinkordtStaff Correspondent

The opinions expressed in NCSA Todayor by its authors do not necessarilyreflect the positions of the NebraskaCouncil of School Administrators.

Tight Revenue Makes for a BalancingActBY ELISABETH REINKORDT

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

One-Size-Fits-All Approach Fails NebraskansBY U.S. SENATOR MIKE JOHANNS

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The Funding Cliff: Fact or Fiction?BY DOUG LEWIS

Reflections on NCSA MembershipBY JACK MOLES

College Readiness forAllBY ROB SLAUSON

“Out-of-the-Box”BY ANN AUTEN

The Day the GovernorWent to High SchoolBY DR. KENT MANN

WhatWill HappenWhenYou Die?BY JACKIE MCGRAIL

HRA Equals Savings for Both District and EmployeesBY MIKE BODEN

NCSA Report – Something to Celebrate!BY DR. MIKE DULANEY and DR. DAN ERNST

CALENDAR OF EVENTS

Page 4: NCSA Today Magazine, Spring 2011

2 NCSA TODAY APRIL 2011

STATEWIDE

Senator Lavon Heidemann, a farmer from Elk Creekand Chairman of the Legislature’s AppropriationsCommittee, knew his committee would face a dif-

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

We wandered a little bit above it and a little bit belowit,” he said, but all in all, he believes his committee hascome to a point of balance that is in line with currentrevenues and needs.

Part of the reason for this year’s difficulty stems fromthe role that funds distributed through the American Re-

covery and Reinvest-ment Act (ARRA) haveplayed over the pasttwo funding years.

From the start, ARRAfunds have been ex-pected to expire, hesaid, and noted that he

expected school administrators have been well aware ofthis and have planned accordingly. However, it has beendifficult to readjust to a general fund appropriation ofcloser to $810 million without the additional ARRA dol-lars. Though the intent of ARRA dollars was to helpstates through the most difficult part of the recession,Heidemann added that unfortunately, “revenue is notwhere we wanted it to be at this time. We’re back to re-ality.”

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

There are some early signs of good news, however.

After meeting on February 25th, the Nebraska EconomicForecasting Advisory Board reported that, largely due toa predicted increase of sales tax revenues, it would ad-just its October projections upward by $24 million forFY2011-12 and $30 million for FY2012-13. Their nextmeeting is on April 28th, and Senator Heidemann saidthat although he’d like to be optimistic, he’s worried. “Idon’t want us to get ahead of ourselves,” he said. As Sen-ator Adams proposes the TEEOSA formula this session,Heidemann says he’s urging him to remember “to be surewe keep it sustainable.”

Senator Heidemann knows how difficult it is to bal-ance the funding needs of K-12 education with the otherneeds of state government, he said, noting that the Ap-propriations Committee is in the unique position of“being told what it will spend.” As the committee holdshearings, it becomes “a real balancing act,” as memberssee testimony from all manner of entities. Heidemann,whose wife is a third grade teacher at Johnson CountyCentral, said he also has many other friends who areteachers or work in educational service units, stressing

Tight Revenue Makes for a BalancingActBY ELISABETH REINKORDT, Staff Correspondent

“I think everybody came inrealizing what we had todo.”

—Sen. Lavon Heidemann

Senator Lavon Heidemann, Chair, AppropriationsCommittee

(continued on page 5)Senator Lavon Heidemann confers with his research assistant, KimDavis.

Page 5: NCSA Today Magazine, Spring 2011

APRIL 2011 NCSA TODAY 3

STATEWIDE

As Senator Jeremy Nordquist watches the newsfrom other states, the chair of the Legisla-ture’s Retirement Committee is happy to say

that Nebraska “does things the right way.” At a timewhen many state budgets around the nation are facingcrippling obligations to public employee retirement sys-tems, he said, “we are very close, even with the hugefall in the stock market,” to a balance between interestand expenses.

Close, however, is not quite enough. Atthe beginning of this legislative session,Nordquist introduced LB 382 on behalf ofGovernor Heineman. Going into this bien-nium budget, Nordquist—who also sits onthe Appropriations Committee —knew thatthe general fund appropriation for retire-ment would be minimal or non-existent. Inorder to keep up with annual actuarially de-fined contributions on the order of $18.8million, an increase in the contributionrates for plan members of 1.5 percent hasbeen proposed. While the final touches onthe bill were still being worked out in com-mittee, Nordquist is anticipating that therate increases will be staggered in the two

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

Senator Lavon Heidemann, who serves on the Retire-ment Committee because of his position as chair of theAppropriations Committee, explained the challenge isthat if the contributions increased too much in the firstyear, those funds would go into the whole pool of ap-propriations, meaning they would not be earmarked forretirement obligations. Heidemann stressed that retire-ment funds need to “help be part of the solution,” tostate budget woes. Without discounting the importanceof pension funds, he said, “we have to keep up with lia-bilities.”

“I know it’s not easy on plan members,” SenatorNorquist said, but added that he hoped that after two ormaybe four years, the state’s retirement plans will beable to make up for the hit taken during the recession in2008-2009. It is hard to determine in advance how farinto the future the rates would have to stay at an ele-vated level, he said, noting that investment returns haveto be smooth over a five-year period for actuarial needsto be met. However, Nordquist said the Retirement Com-mittee would move to come back down to the currentlevels of contribution when it was clear that the fundhad rebounded from the recession. Nordquist added that

Retirement Plans: The Goalis “Long-Term Sustainability”BY ELISABETH REINKORDT, Staff Correspondent

(continued on page 4)

Senator Jeremy Nordquist, Chair, Retirement Committee

Senator Jeremy Nordquist confers with his legal counsel, Kate Allen.

Page 6: NCSA Today Magazine, Spring 2011

4 NCSA TODAY APRIL 2011

STATEWIDE

it “can’t be stressed enough that the key is meeting our actuari-ally defined contributions.”

Senator Nordquist understands the value of “maintaining ro-bust and healthy plans,” on a very personal level. “My fatherpassed away when I was a senior in high school,” he said. “Welived in South Dakota, and he was a state employee. I saw first-hand how my mother was able to survive because of his pension.”Prior to being elected to the Legislature in 2008, Nordquist wasa research analyst for the Retirement Committee under SenatorJohn Synowiecki. (Both Synowiecki and Nordquist come from Dis-trict 7, a district that includes portions of Downtown and SouthOmaha.) When asked why he was interested in working on retire-ment issues in the Legislature, Nordquist said he knows “how im-portant public employee retirement plans were for families inNebraska,” adding that he was interested in maintaining and pre-serving what he described as a “pretty secure system.”

He knows the rate increases over the next two years will notbe easy for school districts, teachers, or administrators. “With thestate budget being where it is, for many [public employees], raisesaren’t on the table right now, so this is coming out of their take-home pay,” Nordquist said. “The Legislature appreciates the sac-rifice,” necessary to keep plans sustainable, he said, and addedthat the fact that the “partner [organizations] are willing to dotheir fair share,” makes for a good public image in tough times.Nordquist urged the members of NCSA, NSEA and NASB to helpshare this message with the public. “We need to work together tocombat the misinformation that’s out there on combined benefitplans,” he said, adding that he felt lucky to have good partnersin all three organizations. “We’ve always committed to not mov-

ing [on a change]until there is consen-sus among the threegroups.” Furthermore,Nordquist believesthat administrators inparticular “under-stand that the plan isan asset [they canuse] to recruit and retain teachers.”

Beyond the proposed changes in LB 382, Senator Nordquistand his committee will be considering other options as well. Sen-ator Heidemann has proposed putting new employees on a cashbalance or hybrid plan, and Nordquist has given assurances thathe will be studying this in the interim. He warned, however, thatit 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 hispriority as long as he serves in the Legislature. �

that he has always valued input from those working in educa-tion.

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

Liberties Union, he remarked that similar legislation has beendone in other states without issue, and hoped that a policycould be developed in Nebraska in the future.

Senator Heidemann was first elected to represent District 1in 2004, and as he reaches the end of his second term, he re-flected a little bit on his time as chair of the AppropriationsCommittee. “We’ve been able to accomplish far more than I everthought possible,” he said, remarking that he has served aschair through some of the toughest times in recent memory.Though there isn’t yet a designated successor in mind to takehis place after next year’s session comes to a close, it will “haveto be a unique individual,” he said. �

Retirement…(continued from page 3)

Tight Revenue…(continued from page 2)

Nordquist knows “howimportant publicemployee retirementplans are for familiesin Nebraska.”

Page 7: NCSA Today Magazine, Spring 2011

APRIL 2011 NCSA TODAY 5

FEDERAL PERSPECTIVE

Congress faces many big issues during the re-mainder of this year but the possible renewal ofthe No Child Left Behind Act will be one of the

most crucial.While I support standards, I do not support the fed-

eral government dictating them to our states. We mustensure our children are receiving the highest quality ed-ucation and this will not be accomplished with a one-size-fits-all approach. I will work to ensure federaleducation reforms make sense for individual states anddistricts by acknowledging the importance of local con-trol and accountability.

Regulations and standards imposed from Washingtonare often simply unfunded mandates, and we all knowthat rare is the program that works the samein California as it does in Nebraska. As youknow, one-size-fits-all approaches fail miser-ably to recognize the very distinct differencesin the challenges facing rural schools com-pared to their counterparts in large cities.Rigid prescriptions from Washington alwayscause me concern.

In addition, the federal government hasprioritized a competitive grant program calledRace to the Top. The program was designed toincentivize states to institute education re-forms that have demonstrated success in rais-ing student performance. Nebraska shouldn’tbe knocked out of the running for competitivegrants because we do some things differentlyfrom other states. Comparing apples to or-anges can be problematic, whether it is doneas part of regulations or grant programs. I willcontinue to seek out good ideas and informa-tion about the consequences of our currentpolicies. I have held several education round-tables across Nebraska in recent months gath-ering insight from teachers, administrators andothers regarding the reauthorization of NoChild Left Behind and how the legislation hasaffected their education efforts. I will con-tinue to meet with educators and look forwardto advocating for flexible policies that willbest serve Nebraska and our country as weconsider this important legislation.

As I have heard from so many educators over theyears, local control and accountability in education arekey to preparing our students for the future. The federalgovernment’s role in education should be limited andwell-defined.

We must get education policy right. If we get itwrong, we tie your hands instead of supporting the crit-ical work you are doing. In many ways, the future of ourcountry is in your hands. You are helping to prepare ourfuture leaders and innovators. We must provide themwith a solid educational foundation. I know you are com-mitted to doing exactly that. I am confident that I speakfor all Nebraskans in expressing appreciation for yourdedication. �

One-Size-Fits-All Approach Fails NebraskansBY U.S. SENATOR MIKE JOHANNS

Johanns

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Page 8: NCSA Today Magazine, Spring 2011

6 NCSA TODAY APRIL 2011

SCHOOL FINANCE

We have been hearing and reading about “thefunding cliff” ever since the Federal gov-ernment passed the American Recovery and

Reinvestment Act and the money was distributed to theState for aid to education. NDE, in August 2010, put outthis statement in its AMERICAN RECOVERY AND REIN-VESTMENT ACT State Fiscal Stabilization Fund (SFSF), Fre-quently Asked Questions, “Invest one time ARRA fundsthoughtfully to minimize the ‘funding cliff.’ The ARRA isexpected to be a one time infusion of substantial newresources. These funds should be invested in ways thatdo not result in unsustainable continuing commitmentsafter the funding expires…”

The idea that districts could allocate the ARRA StateFiscal Stabilization Funding monies for one time fund-ing sources was nice in theory but short in reality, es-pecially when the federal government was touting howthe investment was saving jobs and the state govern-ments were using the federal dollars to maintain theircurrent state aid formulas. In other words, this washardly an infusion of “substantial new resources” butrather a replacement for committed dollars.

“Saving and creating jobs implies expenditures onsalaries, and salaries are inherently ongoing expenses,”said Jennifer S. Cohen, a policy analyst at the New Amer-ica Foundation, a Washington think tank. “They createfunding 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 bythe advice from NDE. Districts made plans for one timeexpenditures so as not to create an unsustainable com-mitment. By the second year, the amount of ARRA fund-ing increased to $140 million or 15 percent of the stateaid commitment. By now the stimulus funding was a sus-taining revenue for the state and the districts receivingit. Nebraska districts were now faced with the same re-alities that other districts around the nation were facingalready, a drop off in state funding to K-12 educationduring the next several years. Even the NSEA recognizesthe potential impact of the funding cliff on NebraskaSchool districts: “Last year, the Legislature sent $950million in state aid to the state’s K-12 schools for the2010-11 school year. Preliminary reports indicate thatthe Legislature could cut as much as $140 million fromthat for 2011-12, and the cuts would continue in 2012-13…State aid cuts translate into higher property taxes,massive job and program cuts, and increases in class sizeat the local level. State aid cuts hurt kids.” (NSEA,2011).

Call it a cliff, call it a step, call it what you want. Thereality is that many school districts around the state willhave less money coming to them to fund their budgetsthan in the previous year. That is the reality. There willbe less money distributed in state aid next year com-pared to this year. If the Governor’s plan is correct, therewill be approximately $81 million less in state aid afterthe Education Jobs Funding is added back into the 2012fiscal year. During the 2013 fiscal year another $10 mil-lion reduction is expected as the Education Jobs Fundingmoney will be eliminated. (See Figure 1)

What does it mean to have a funding cliff? The sim-ple answer is…it depends. Districts that receive very lit-tle state aid may not see as large an impact as thosethat depend more heavily on state aid revenue. For some,the cliff may seem more like a pothole (although in someparts, even those can swallow a car) and for others itmay seem like the Grand Canyon. For districts that don’treceive state aid the spending limitations being pro-posed will have similar budget implications over time.Regardless of how your district is impacted the solutions

The Funding Cliff: Fact or Fiction?BY DOUG LEWIS, Assistant Superintendent, Papillion-La Vista Public Schools

Lewis

(continued on next page)

Page 9: NCSA Today Magazine, Spring 2011

APRIL 2011 NCSA TODAY 7

SCHOOL FINANCE

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 rev-enues and the limitations on spending.

For obvious reasons, we are not going to talk about increasingrevenues through higher taxes. Suffice it to say it is an option butprobably one that is not top on anyone’s list. Many people willpoint to the use of cash reserve as the answer to the funding cliffdilemma. Many districts plan to utilize some cash reserve duringthis period but will do so cautiously. Districts require a cash re-serve to allow them to meet payroll and other obligations untilthey receive their property tax draw from the county. School dis-tricts must operate with little property tax revenue for three quar-ters of the year or else borrow against the anticipated revenueand pay interest. The more cash reserve you spend down themore money you have to borrow and the tighter you need to con-trol costs until you can pay back the loan. More important thanthe short term problems this creates are the long term impact theuse of cash reserve has on a district. Once the economy makes acomeback, the district that draws down their cash reserve willstill be in the cycle of borrowing and restricting spending untilthey can build the reserve back to a level that stabilizes the cashflow. Any growth or replacement of programs that were eliminatedwill be delayed that much longer.

The final method of dealing with reduced revenue and tighterspending lids is to cut costs. Across the nation this is the oneconstant that echoes above all the others. School districts re-quire people to do the job of educating our youth. Personnelcosts make up 80 to 85 percent of the expenditures in most dis-tricts. To truly impact the budget and spending, personnel costsmust be addressed. For a district to actually cut the budget youhave to assume that all spending remains the same as it was theprevious year. Your budgeting process must start with a zeropercent increase. In Nebraska, for a district to maintain currentpersonnel costs they would need to be in top half of their arraywith all other districts remaining at the same level. However,districts below the midpoint in the array may be forced to in-crease their salaries to comply with Nebraska’s current CIRprocess. This in turn creates a domino effect within the arraydistricts. To avoid falling below the midpoint the other arraydistricts would need to increase their salaries and this in turnmay affect other arrays. When the budget increases due to anincrease in personnel costs and no corresponding revenue in-crease 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 afunding cliff in the state aid formula. How it translates to dis-tricts throughout the state depends on how much state aid yourdistrict receives. Will this funding cliff have an effect on all dis-tricts in the state? Yes, even those that don’t receive state aidwill have pressure from the spending lids to reduce costs. Cancash reserves be used to reduce the “cliff effect”? Yes, but it can-not eliminate it and may prolong the impact if not done discern-ingly. Will districts have to make cuts in their budgets? Yes, andthey will have to make some tough decisions with regard to per-sonnel and programs because of the nature of the education busi-ness. As salaries increase, offsets must be found within thebudget to balance that out. Will taxes go up? That is one thatonly your district can answer. There are still many questions thathaven’t been answered and won’t be until state aid and valua-tions have been certified. About the only thing we can be sureof every year is that the state aid formula will change and we willhave school next year. �

Nebraska Department of Education. (2010, July 20). AMERICAN RECOVERYAND REINVESTMENT ACT State Fiscal Stabilization Fund (SFSF), FrequentlyAsked 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.

The Funding Cliff…(from page 6)

McPherson & Jacobson, L.L.C. 7905 L St., Suite 310

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Page 10: NCSA Today Magazine, Spring 2011

8 NCSA TODAY APRIL 2011

AFFILIATE LEADERSHIP

As we look deeper into the black hole of eco-nomic questions facing schools today, it be-comes personally easier to consider

eliminating some of the “extra” costs of our profession.One of those “extras” under consideration may bewhether to discontinue membership in the NebraskaCouncil of School Administrators and our own affiliateorganization. I am hopeful that any member that is con-sidering this question will take the time to think throughthe benefits that membership brings. Sometimes thesebenefits are not things we can wrap our hands around,but are simply inherently received as being part of theorganization. I would like to take this opportunity tohighlight some of the highlights that membership inNCSA brings.

NCSA is one of the “go to” organizations in legislativeissues dealing with education. Mike Dulaney’s bill sum-maries are universally seen as probably the best resourcefor educators, lobbyists, and often senators in providinga brief description of often lengthy bills. Having NCSA’sname on these summaries automatically puts the organ-ization at the table in any discussion. However, the inputthat members provide to senators in the form of infor-mation on the impact of pieces of legislation cannot beoverstated. Again, strong representation by members ofNCSA puts us at the table. I believe the influence thatNCSA carries legislatively is helping to define educationin this constantly changing atmosphere. Our organiza-tion plays a major role in such issues as the retirementsystem, state aid, and the CIR. We need the strength ofnumbers in our membership to continue to have thatsame influence.

It was not that many years ago that health care inschools was managed by the NSEA. Both the NASB and

NCSA were asked tojoin NSEA in beinga partner. Thus, theEducators HealthAlliance was cre-ated. NCSA has sixrepresentatives,three of whomhave a vote, on theEHA Board of Di-rectors. Severalyears ago I wasasked to representNCSA on the EHA

Board, and I continue to serve as a voting member andthe recording secretary. Thus, I have had the opportunityto be a part of NCSA’s presence in defining the healthcare plan that is available for not only our members, butmembers of NSEA and other educational groups as well.When compared to most other states, educators in Ne-braska have access to a much better health insuranceplan. This could only happen because of an alliance be-tween NSEA, NASB, and NCSA. Without this alliance, ed-ucators would likely be looking at a plan that is muchinferior to what currently exists as boards of educationand administrators would not have supported the plan.Again, NCSA is at the table helping to make this hap-pen.

As stated earlier, NCSA has had a voice in retirementissues. As with health insurance, Nebraska educatorsenjoy a superior retirement plan compared to educatorsin most other states. One of the main reasons for thishas been the leadership of NCSA in helping to define therules governing the retirement system and to advocatefor enhanced benefits. Several years ago administrators,especially superintendents, came under fire regarding re-tirement issues. NCSA had a direct hand in helping de-fine the solutions. The current retirement system is fairlyhealthy, but there are concerns. NCSA is a strong voiceduring this legislative session in helping to protect theviability of this outstanding plan that all of us will ben-efit from someday.

One of my best sources of information in my work isthe NCSA web page. Mike Dulaney has been the guidingforce in developing one of the most user friendly web-sites available. From the home page one can find help ina wide variety of subjects: health insurance, legislativeissues, legal briefs, instructional webinars and videos,and even a dissertation archive. This service, as well astext and twitter possibilities, puts NCSA on the cuttingedge of technology. The work done in this area is a greatexample to each of us in our administrative work on howto improve in communications.

NCSA has grown immensely under the leadership ofMike Dulaney, Dan Ernst, and Kelly Coash-Johnson in thearea of training. When I first entered the field of ad-ministration I would go to Administrators’ Days and theoccasional legislative seminar. Now, with a focus onhelping our members improve themselves, we have legalseminars, technology training for administrators, andother growth opportunities. I have personally observed

Moles

Reflections on NCSA MembershipBY JACK MOLES, President, Nebraska Association of School Administrators; Superintendent, Johnson County Central

There are hidden benefits tomembership in NCSA.Themost tangible benefit fromNCSA may simply be theopportunities for networkingwith one’s peers. … NCSAprovides us with thesenetworking opportunities.

(continued on next page)

Page 11: NCSA Today Magazine, Spring 2011

APRIL 2011 NCSA TODAY 9

AFFILIATE LEADERSHIP

the programs that NCSA has put together for both new and aspir-ing administrators. I wish these same opportunities had beenavailable when I was a younger administrator.

Some of the most helpful advice I have ever received in myadministrative career has come from within the office walls ofNCSA. Currently, I count Dan Ernst as one of my most valuedsources for information or advice. I had the opportunity to admireDan’s work as a fellow superintendent and was very pleased whenhe joined the NCSA staff. His ability to look at things from theangle of a former administrator is invaluable. Because of his nat-ural progression through the administrative ranks, he can be a re-source to not only superintendents, but to other administrators aswell.

One of the greatest sources of pride for me in NCSA is how wellwe work with both NSEA and NASB. NCSA really is the middlemanon many issues. We want to do what is best for our teachers, butat the same time we see the issues that boards of education mustaddress. 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 ofunifier. I believe the three organizations may be as close as I haveever seen them.

There are hidden benefits to membership in NCSA. The mosttangible benefit from NCSA may simply be the opportunities fornetworking with one’s peers. I have learned so much from othermembers simply from chatting in the hallway during a break at aconference, or enjoying each other’s company in a hospitalityroom at Administrators’ Days, or sharing a ride to a meeting withother administrators. Some of my closest friends are administra-tors. I believe this is common for many administrators and thereason for this is simple. We understand each other and offer al-ternate angles to consider. This networking does not take placewithin the walls of our own schools. The networking takes place

when we come together at workshops, conferences, and socialgatherings. NCSA provides us with these networking opportuni-ties.

This discussion cannot end at just the state level. Being amember of one’s national affiliate is also vitally important. I haveserved for the past two years on American Association of SchoolAdministrator’s Governing Board and have had the opportunity tosee up close the work that my affiliate, AASA, does on the na-tional level. I know that AASA is heard by our congressional lead-ers. The same is true for our other national affiliates. These groupsare struggling to maintain membership. I know some of them arelooking at ways in which they can corroborate. For example, AASAand NAESP are in the process of becoming partners in the samebuilding. With the direction education seems to be heading onthe federal level I believe it is more important than ever to havea voice on the national level.

I have always had a great appreciation for the work of the staffat NCSA. They do a remarkable job for such a small group. I havenever called and not been able to get the help I was looking toget. In my estimation, this personal level of help is priceless.Other organizations require members to go through layers andlayers to find the proper help. Help from NCSA is just a phone callor an email away.

There are many more benefits of membership in NCSA thanwhat I have identified here. I am simply sharing the benefits thatI find to be most valuable. These benefits, though, do not existwithout the strength of our affiliate organizations coming to-gether under one umbrella—NCSA. Membership alone is not thetotal answer. Our organization is only as strong as the active par-ticipation of our members. I urge membership, but stress that tomake the organization stronger and more vibrant, all membersmust take advantage of the opportunities offered. �

Reflections on NCSA Membership…(continued from page 8)

BBuulllleettiinn BBooaarrdd

For more information or to register for any of these events visit http://ncsa.org or contact [email protected]

Tech Boot Camp

May 9, 2011

June 6, 2011

NCE ConferenceJune 7-9, 2011

Cornhusker Hotel – Lincoln

Administrators’ Days

August 3-5, 2011

Younes Conference Center – Kearney

State Data ConferenceApril 18-19Younes Conference Center – Kearney

GRIT May 10, 2011

Embassy Suites – Linco

ln

NCSA Golf Tournament

June 23, 2011

Wilderness Ridge – Lincoln

Hal Urban WorkshopJune 1, 2011

Grand Island Sr. High – Grand Island

Page 12: NCSA Today Magazine, Spring 2011

10 NCSA TODAY APRIL 2011

PROGRAM SPOTLIGHT

Many don’t believe that most students are‘college material’ and certainly not all stu-dents from low-income families and ethnic

and racial minority groups. There isn’t a conspiracy todeny opportunity to anyone; it’s just a sort of under-stated belief, something that exists as ‘common knowl-edge’ in the ‘everybody knows’ universe of unquestionedassumptions. Unfortunately, these assumptions arelargely untested,” says Dr. David Conley, renowned col-lege readiness expert, educator and author in an excerpttaken from an article last fall in AVID’s educational jour-nal, ACCESS.

If all students haven’t been challenged in the firstplace, it’s pretty hard to tell how many of them can ac-tually get to the level of college ready….

Rather than debating the purpose of high school andwhether everyone should be preparing to go to college,we need to just start doing it and let the evidence speakfor itself. We can’t resolve this via debates and asser-tions. We need to put it to rest by means of effectiveprograms, such as AVID, that move beyond assertions toactions.

Why AVID? Because AVID works. From the very be-ginning, AVID founder Mary Catherine Swanson knew

that collecting information about the success of her stu-dents would be necessary to prove her theories and prac-tice. Swanson, head of the English department in 1980at her newly integrated high school, set out to provethat with academic support and rigorous college prepara-tory classes, her lower income and minority studentscould do just as well as her more affluent white students.

Her colleagues were more than skeptical. Fast forward to2011, more than 30 years and 400,000 students (peryear) later, data proves again and again, that the AVIDsystem works.

What differentiates AVID from other educational re-form programs is its astounding success rate. Of the morethan 22,000 AVID 2010 seniors who reported their in-formation, 99.6 percent graduated from high school with91.3 percent planning to attend a post secondary insti-tution; 58.3 percent in four-year institutions and 33.0percent in two-year institutions.

AVID also closes the achievement gap. Note in thechart, “Completion of College Entrance Requirements,”that with AVID students, the ethnic group differenceswere within six percentage points, whereas the nationalstatistics showed variances as great as 28 percentagepoints. Additionally 74 percent of the seniors reportedtaking at least one AP or IB course with 61 percent tak-ing the corresponding exam.

Leadership firstIt’s been said, “To change students, we must change

teaching.” [Note: it says: “teaching” not “teachers.”] Ifthe goal of education is to ensure that students havechoices about their future, that their opportunities arenot limited because of education they did NOT receive,then education leaders must take the lead and insist thatall students are prepared for college.

From school board trustees, to superintendents, toprincipals, all must believe that every student is capableof achieving college readiness and work to that end. Theunspoken innuendo that because of economic status orethnicity some children can’t succeed must stop. Nolonger can one student be asked what they intend tostudy in college and another be asked if they are going

College Readiness for AllBY ROB SLAUSON, Principal, Lincoln Southwest High School

Slauson

(continued on page 12)

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

2009-2010 AVID Students

Student Group PercentEconomically disadvantaged 62African American 20American Indian 1Asian 5Hispanic or Latino 49White 21

Page 13: NCSA Today Magazine, Spring 2011

APRIL 2011 NCSA TODAY 11

PROGRAM SPOTLIGHT

Managing student resistance is a stressful andchallenging task that can be extremely frus-trating from a principal’s point of view; es-

pecially, when called as a last resort to manage thisresistance:

“The recess bell rings. A student refuses to come tothe lineup, continuing to play. After warnings andthreats of consequences, the recess teacher calls for as-sistance. The principal is ‘up to bat.’ The principal arriveson the scene knowing that this child comes from a his-tory of neglect and abuse at home.”

It is important to first identify the purpose behindthe inappropriate behavior a child displays. Why doesthis child want to challenge authority? According to Dr.John Maag, a nationally recognized scholar and behav-ioral consultant, non-compliant behavior allows childrento either gain attention, avoid a task they don’t want todo, or gain power by trying to irritate us. The form of thebehavior—not coming in from recess—is the least im-portant aspect to address. Instead, one must determinewhat purpose the behavior serves.

A student with a history of neglect may need to feelempowered, because he lacks positive feelings of self.He wants someone to come and give him the attentionhe craves. A wise principal realizes that to give the childthis attention is going to encourage the behavior to re-occur. The principal asks the recess teacher to bring inthe other students and ignore the student who refuses to

come. The principal standsbehind a wall or watches outthe window always supervis-ing the child. For a while thechild walks around, enjoyinghis freedom, although helooks towards the school oc-casionally to see if anyone iscoming. As time passes, heconstantly looks for someoneto come and get him. He fi-nally decides to come to thedoor of the school, which islocked. He pushes the buzzerand asks to come in. Hehears the principal’s voice tellhim that since he chose to

stay outside, he can stay outside longer. Of course, thisis not what the child wants and his plan has backfired.No attention is received. After a few more minutes ofanxiety in not being able to enter the building, the stu-dent is allowed to come in. Before returning to class, heprocesses with the principal why this behavior was in-appropriate and what he should do the next time. Per-haps, they go outside to practice. By taking away theattention the child hoped to gain, he will probably nottry this technique again. If he does, the same process isinitiated again to “outlast” the negative behavior.

Using traditional punishment for negative behaviorscan result in a child who will continue to be highly un-cooperative. The need for attention, negative or posi-tive, is stronger. Creating rapport with a child whenacting appropriately, is very effective in later obtainingcompliance from a child.

Children need love and support, especially when theydo not deserve it. When children become upset, thereare four levels of stress they experience. First, they be-come anxious. This is the time that one can talk withthe child and give alternative solutions. When a childmoves into a defensive mode, there is no point in talk-ing about solutions. This is the time to ask a child tomove to a safer place without having any conversation.In fact, walking in front of the child as if they will fol-low can be effective—remember walk don’t talk! Withyounger children, holding their hand and walking quicklydoes not give them much choice but to follow you. In-tervention must take place at the first two stages, beforethe child enters the aggressive or dangerous stages. Aneffective strategy is to practice with a child when theyare not in an anxious state. Role-play steps to change anegative behavior. Show them where they can go to besafe. A time-out place should never be used to punishbehavior. It should be used to settle down the “survival”brain so you can talk about the effect of a child’s be-havior and teach them new strategies to solve problems.

With high stakes testing in every public school sys-tem, we cannot afford to give consequences in whichstudents miss classroom learning time. We must use cre-ative strategies to match and change the negative be-havior. For example:• A student writes on bathroom walls; he cleans them

“Out-of-the-Box” BY ANN AUTEN, Principal, Hawthorn Elementary–Hastings

Auten

(continued on page 12)

Show them where theycan go to be safe. Atime-out place shouldnever be used to punishbehavior. It should beused to settle down the“survival” brain so youcan talk about the effect of a child’s behavior and teachthem new strategies tosolve problems.

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12 NCSA TODAY APRIL 2011

PROGRAM SPOTLIGHT

to college. Expectations must be the same for all students. Thisbelief must penetrate the organization, and it starts at the top.

The key, and this is where AVID comes in, is connecting withstudents who come to school with educational disadvantages(for whatever reason); teaching them the skills they need to besuccessful, and giving them the support and encouragementthey need to reach their goals. AVID trains more than 20,000educators annually in pedagogy to engage students in rigorouscoursework that helps prepare them for college. The AVID elec-tive class focuses on developing academic abilities while build-ing a safe peer group. The beauty of AVID is that it doesn’tstop at the AVID classroom; as faculty are trained and imbedAVID strategies in classrooms throughout the school, all stu-dents are able to take advantage of the skills AVID teaches. It

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

Fort Lupton Co. Middle School principal Willard Tucker uponreceiving the National Association for Middle School Principals,School of the Year award for 2011 stated that, “AVID played animportant role for us in receiving this award. The AVID strate-gies our teachers are using have had a significant impact on ourstudents.”

AVID is the leader in successful college-preparatory programsfor low-income, overlooked and underserved students, andtoday reaches more than 400,000 students in approximately4,500 schools in 47 states and 16 other countries/territories.�

during recess with the custodian. The custodian should dis-cuss his feelings about the extra work this causes for him, giv-ing the child a reason to stop the behavior and develop arelationship.

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

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

• Two students fight on the playground…both lose a week’sworth of recesses working together to pick up trash or scoopsnow. We often make the mistake of using in-school suspensionfor 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 fif-teen-minute rest time with a snack can bring a child back toa learning mode.

• When removing a young child from a negative situation, theyare often embarrassed by their behavior. Bring a blanket andlet 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 youngerchild…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 fewminutes 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 rewardthe child for moving quietly. Give the child time to de-escalate bycoloring or drawing, playing with trains or legos, working puz-zles, or provide a place with soft lighting or quiet music. Manychildren have sensory issues and it is useless to address negativebehaviors until a child is not in the anxious stage. Some princi-pals may question the use of these techniques, seeing them as re-wards for the inappropriate behavior. The child should still receiveappropriate consequences for negative behaviors after reaching acalm state. Consequences might include writing an apology, los-ing a favorite activity, or sending a note home to parents.

In summary, no one strategy fits all. Identify a purpose for anegative behavior and avoid giving attention for this behavior. Avisit to the principal’s office to share the day’s behavior pointchart can be very effective and creates a positive relationshipwith the principal. Time invested to build rapport or address sen-sory needs will be time well spent. �

Out-of-the-Box…(continued from page 11)

College Readiness for All…(from page 10)

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APRIL 2011 NCSA TODAY 13

SCHOOL VISITATION

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

Apparently a young school girl wrote a letter to the Pres-ident and suggested that he would look much better ifhe wore a beard. Lincoln took the advice to heart and, asyou know, the rest is history. A few months ago, NCSA Ex-ecutive Director, Dr. Mike Dulaney, suggested that Gov-ernor Dave Heineman “walk the halls” with a principaland gain a closer look at what happens daily in a Ne-braska high school. The Governor did just that. On Jan-uary 25, 2011, he cleared his schedule and spent themorning at Grand Island Senior High.

We began our day at 7:45 a.m. with the Governor�s ar-rival at Senior High and went immediately into the hall-ways 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), ourLatino, Sudanese, Somalia, Native American, and Whitestudents met and greeted Governor Heineman. In addi-tion to the crowded hallways, he noticed that our schoolhas become a school of color and diversity. As the stu-

dents passedby, we talkedabout thehome envi-ronments theylive in, thec h a l l e ng e sthat studentsof povertyc o n f r o n tevery day, andthe pressuresand demandsthat theyouth of ourstate face.

During thefirst part ofthe morning,we visitedc lass rooms.The Governorstopped by

and met 24 students in an ELL class. The students werefrom four different countries in Central America, refugeecamps in Sudan, and from the war-torn cities of Soma-lia. The class was a social studies class and some of thestudents recognized the governor’s job as one of many inthe governance of our state and country. He was askedfor an autograph as well! We talked about the difficultiesthat ELL students may encounter in high school and howmany students do not have enough time to graduate withtheir cohort group. He met students who will earn a highschool diploma, but who will also be counted as a dropout on the NDC State Report because they needed morethan eight semesters to finish their high school courseof study.

During 1st Hour, we also sat in on an Astronomy class.As one of only two high schools in the state to have aplanetarium, we like to showcase our Astronomy, Practi-cal Astronomy, and Astro Physics classes. The Governorgot to see a class of 34 students engage in a constella-tion identification formative assessment activity,watched as the view of the skies from the North Pole wascompared with the view of the skies from Grand Island,and learned the name and location of the only star inour universe that never moves. He was also challengedto make some quick stellar calculations to help under-stand why many of the stars that we see at night nolonger exist TM 2 (it is because by the time their lightgets to earth, the star has burned out and turned into ablack hole.) The Governor was impressed with the classby the time we departed. In route to our next stop, wehad a chance to talk about the state�s financial crisisand how the loss of state aid will impact schools. I notedthat we would not be able to operate the planetariumand offer these science courses if state aid is severelycut next year.

Later in the morning, we visited the Student WellnessCenter. Governor Heineman learned about a collabora-tive partnership with St. Francis Medical Center in GrandIsland and Senior High. The Wellness Center has a staffof two mental health counselors, a nurse practitioner,and an office manager who provide medical and mentalhealth services to over seventy percent of our total stu-dent population. As we walked the halls and visited otherclassrooms, we talked, in length, about the challenges of

The Day the Governor Went to High SchoolBY DR. KENT B. MANN, Principal, Grand Island Senior High School

Mann

(continued on next page)

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14 NCSA TODAY APRIL 2011

SCHOOL VISITATION

making a large school into a place where everyone is recognizedand wants to belong. We talked about the many ways teachersadvocate for students, how teachers mentor, encourage, supportand love their students in and out of the classroom. We were ableto put real names and faces with real-life situations and circum-stances. The Governor was very interested in our OASIS period, a15-minute homeroom period at the beginning of the day. DuringOASIS, we spend time daily talking with students about positiveattitudes, responsible behavior, and making good choices. On theway to the office near the end of his visit, we walked through ourgallery of Competitors, Contenders, and Champions. I had the op-portunity 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 withthe administrative team. We shared our job responsibilities andtalked at length about public education and the challenges fac-ing schools in Nebraska and the nation. Our discussion includedissues like the impact of poverty on students, ELL program limi-tations, the foolishness of the U.S. Dept. of Education’s plan toimprove failing schools, and possible legislation in Nebraska thatwould link eligibility for a driver�s license to positive school at-

tendance and academic performance. When President Lincoln interacted with that young, school-

aged girl, the ensuing exchange impacted his political career andbecame part of his presidential legacy. I really don�t know if anyof our students gave Governor Heineman any fashion or groomingadvice. However, I do know that our Governor was willing to spenda good portion of his day in our high school interacting with Ne-braska high school students, teachers and administrators. His will-ingness to listen and learn more about the functions, issues, andconcerns that impact our school was a very powerful politicalstatement. We were honored to host Governor Heineman at GrandIsland Senior High School. The state is very fortunate to have aGovernor who is willing to “walk the halls” and learn more aboutNebraska high schools. �

Governor…(continued from page 13)

Page 17: NCSA Today Magazine, Spring 2011

APRIL 2011 NCSA TODAY 15

FAMILY MATTERS

Life insurance is the cornerstone of a solid financial plan,and it protects your loved ones against financial loss ifthey lose you and your income. But life insurance is just

one way you can help your family ease the emotional stress thatcomes with the loss of a loved one. Take action now to let yourfamily know your wishes and how to execute them.

Consider these steps offered by the nonprofit organization Lifeand Health Insurance Foundation for Education (LIFE) to help youget your financial affairs in order so you can rest easy knowingyour family will be taken care of if you die:

Make it a family affair. Be direct when talking with lovedones about this difficult topic. Keep the conversation private, ina setting where everyone feels comfortable and involve as manyimmediate family members as you can. Then talk through worst-case scenarios to find out what everyone’s concerns are and needswould be, financial and otherwise. This could include identifyingwho would take care of your children if you and your spousedied or evaluating how much money your family would needupon your death to meet ongoing living expenses and fund fu-ture plans. Answering these questions will help ensure that yourfamily is taken care of no matter what twists and turns lifebrings.

Pay it forward. Purchase adequate life insurance for you andyour spouse now to help your family avoid financial pitfalls later.Having the right amount of coverage will help ensure that yourfamily’s dreams can be realized even if you’re not there to wit-ness them. How much and what kind of life insurance to buy isbased on a number of factors, so seek assistance from a quali-fied insurance professional.

Where there’s a “will” there’s a way. Make a will and up-date it periodically. Make sure it specifies executors, trustees,and guardians for dependent children. Don’t forget to get a liv-ing will too (health care directive) to make sure loved ones knowwhether or not you want to be kept on artificial life support.Similarly, you should designate a power of attorney—someoneauthorized to manage your affairs, typically financial ones, ifyou’re not able to handle them yourself.

Rest in peace. Decide on your preferences for final arrange-ments including your funeral, type of burial, where you wouldlike to be buried and whether you want to be an organ donor.Write your wishes down and make them known to family andclose 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 importantnon-financial information and valuables are located, includingbirth and marriage certificates, titles and deeds and safe depositbox keys. Don’t forget to include contact information for all ofthe 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 mem-bers know how to get to it.

Protecting your family against the loss of your income beginswith life insurance. Talk to an insurance professional today andget started on your life insurance plan. �

What Will Happen When You Die?Five Things You Need to DoBY JACKIE MCGRAIL, The Horace Mann Companies

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16 NCSA TODAY APRIL 2011

HEALTH CARE

A723-employee school district was paying outan average of $1,260,000 per year in accu-mulated unused sick leave and accrued vaca-

tion 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 additional7.65% FICA tax that cost another $96,360. The incentivealso lost value for the teachers because it was subject towithholding tax in their current tax bracket.

The district’s Business Manager attended a seminarwhere she learned that if she deposited the incentiveinto an HRA (Health Reimbursement Arrangement) in-stead of normal payroll, it would result in a win-win sit-uation for the district and the employees. In addition tothe district saving over $96,000 in FICA tax, the retiringteachers received the full amount of the incentive with-out the normal tax withholdings. In some cases thischange resulted in savings of as much as $10,000 to$15,000 for the retiring employee. The teachers werealso pleased to learn that the funds roll over every yearand accrue interest because there is no “use it or lose it”provision.

The retiring teachers at this particular district cannow use the HRA funds not only to pay for their medicalexpenses, co-pays and deductibles; but also premiumpayments on their retiree medical insurance as well asmedicare supplemental insurance. There are no require-ments that prevent them from qualifying, such as beingcovered by a high-deductible medical plan, nor is theplan contingent upon a spouse’s access to a certain typeof medical plan or Flex Spend Account as there is with anHSA (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 pre-miums on a tax-free basis. The funds in these accountsroll over annually; therefore, monies are not forfeited.Additionally, these plans serve to increase an employee’sresponsibility for and ownership of medical expenses andsavings.

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 time-

of-separation pay.• Requiring new hires to participate in higher de-

ductible medical insurance plans with HRAs whileleaving other employees on more traditional plans.

• Steering employees toward the higher deductible andpossibly more sustainable medical plans (such as theEHA Dual Choice Plan) by offering an HRA as an in-centive.

• Promoting consumerism in health care decisions.

HRA AdvantagesThere are many advantages for school districts to use

an HRA including:• No FICA Tax. The district and employee each perma-

nently save 7.65%.• Tax-Free Use of Funds. The HRA is used to pay for el-

igible medical expenses and funds are not subject toincome tax.

• Interest. Account balances accrue compounding tax-free interest.

• No Penalties. Funds can be accessed for eligible med-ical related expenditures and premiums at any timewithout penalty (subject to the district defined vest-ing schedule).

• Investment Choices. Choose from Fixed-Interest orVariable Investment options.

Use an HRA to Pay your Early Retiree Incentives atTime-of-Separation Pay

Paying for accumulated sick leave, unused vacationpay, payments based on years of service or other retire-ment incentives can take a big chunk out of a district’soverall budget. Funds earmarked for these purposes canbe directed to an HRA and payroll taxes can be avoidedby both the employee and the employer.

Use an HRA with a High Deductible Health PlanDistricts can use an HRA alongside the new EHA Dual

(continued on next page)

HRA Equals Savings for Both District and EmployeesBY MIKE BODEN, National Insurance Services

Page 19: NCSA Today Magazine, Spring 2011

APRIL 2011 NCSA TODAY 17

HEALTH CARE

Choice option as an incentive for employees to elect the higherdeductible plans. Often, districts will provide an HRA in theamount equal or close to the increase in deductible. Depending onthe health needs of the plan member, this could be a wash or, inmany cases, a better option for the employee by allowing him/herto create a nest egg for future medical expenses.

Some districts have also considered making a higher deductibleplan a requirement for all new employees and using an HRA along-side the health plan. Depending on the district’s situation, thiscould prove to be a financially sustainable option.

Consumerism in Health Care SpendingWhen 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 servicesexcept when it comes to medical services. This lack of con-sumerism can create runaway claims and drive premium increases.Experts agree that to reduce costs, organizations must encourageprudent medical utilization.

Using an HRA encourages consumerism because the plan mem-ber has financial "skin” in the game. Traditional medical insur-ance plans do very little to encourage a consumer-focusedapproach in medical care spending. High deductible health plans

support smarter health care spending by encouraging plan mem-bers to shop for the best pharmacy prices, choose lower costproviders, eliminate duplicate tests and consider physician-rec-ommended alternative treatment.

Considerations When Negotiating an HRA• Compare Provider Fees. Most plans have a small fee associated

with it that may include reimbursement and administrationfees.

• Vesting Choices. Choose a plan with vesting options. One sizedoesn’t fit all. While immediate vesting is important in oneparticular application, it may not be relevant in another ap-plication. Look for a program that allows all three types ofvesting: immediate, cliff and step-vesting.

• Choose a Provider with Public-Sector HRA Experience. An HRAfor a corporation is very different than an HRA for a schooldistrict. Choose a provider who has the public sector experienceyou need.Affording health care is the number one concern of retirees.

HRAs can help ease some of that worry and make it easier for em-ployees to retire, saving valuable taxpayer funds and healingwounded budgets. �

HRA’s…(continued from page 16)

TRUSTED COMMUNICATION WHEN IT MATTERS MOST

blackboard.com/connect 1.800.213.7168

Page 20: NCSA Today Magazine, Spring 2011

18 NCSA TODAY APRIL 2011

NCSA REPORT

Many times in the school business we fail totake the time to celebrate or at least ap-preciate the good things that happen. Most

recently The Educators Health Alliance (EHA) Board ofDirectors, capitalizing on a soundly funded health insur-ance plan, voted unanimously to offer a zero percent(0%) increase on the premium rates for 2011-12. Therewill be no increase in health insurance premium rates forgroups and early retirees participating in the EHA for the2011-12 plan year, which begins September 1, 2011.This action results in no reductions in benefits and ac-tually adds new benefits as required by the provisions ofthe Patient Protection and Af-fordable Health Care. In ad-dition, the EHA Board votedin favor of a plan to limit theincrease for the 2012-13 planyear not to exceed more than4% from the current rates.This is the first time the EHABoard has taken additionalaction regarding rates for thefollowing plan year. The rat-ing decisions apply to allseven available active em-ployee health plans, three early retiree benefit plans, andfive dental plans. This additional action is designed toprovide 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 ofmany to offer this positive news in tough economictimes.

There are a number of factors that have contributedto the rating decisions and include: • A significant decline in medical inflation trends;• Recent lower than anticipated utilization rates in hos-

pital 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 in-

creases;

• The projected impact of the 2011 implementation ofa state-wide wellness and health promotion programand;

• Prudent management over time in the design andchoices of benefit plans.

Participation, collaboration, and cooperation aretenets espoused as part of the EHA logo. NCSA, NSEA,and NASB as partners in the EHA have worked collabo-ratively to provide a quality health insurance programthat meets the needs of plan members. The EHA Board

understands the financial issues before EHA plan mem-bers as well as the fiscal constraints facing school dis-tricts. We are thankful and most appreciative that theefforts of those involved with the EHA have resulted inthe opportunity for “no increase” in rates for new planyear. Celebrate! �

Something to Celebrate!BY DR. MIKE DULANEY, Executive Director; and DR. DAN ERNST, Associate Executive Director

Dulaney

Ernst

Page 21: NCSA Today Magazine, Spring 2011
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20 NCSA TODAY APRIL 2011

CALENDAR OF EVENTS

APRIL13 NASBO Golf Tournament 1:00 p.m. Wilderness Ridge Lincoln14-15 NASBO State Conference 8:00 a.m. Cornhusker Hotel Lincoln14-15 NASES Spring Conference 10:00 a.m. Harms Center/ESU #13 Scottsbluff18-19 State Data Conference 9:00 a.m. Younes Conference Center Kearney19 NSASSP Executive Board 4:00 pm. NCSA Lincoln20 NASA Region I 4:00 p.m. Hillcrest Country Club Lincoln20 NSASSP Region IV 2:30 p.m. ESU #10 Kearney21 NCSA Executive Board 9:00 a.m. NCSA Lincoln21 NSASSP Region III 5:00 p.m. Fairplay Golf Course Norfolk27 NSASSP Region I 5:30 p.m. Evening w/ Friends Milligan27 NSASSP Region II 5:30 p.m. TBD TBD27 NAESP Region II 5:30 p.m. River City Star Omaha28 NAESP Region IV 12:00 p.m. Drew Heady’s House Hastings

MAY6 NASES Region II 8:30 a.m. Fremont Admin Bld Fremont6 NASES Region III 12:00 p.m. TJ’s Norfolk9 Tech Boot Camp 8:00 a.m. ESU #3 La Vista10 GRIT 8:00 a.m. Embassy Suites Lincoln27 NASES Region I 9:30 a.m. NCSA Lincoln

JUNE1 NAESP Executive Board 9:00 a.m. NCSA Lincoln1 Hal Urban Workshop 8:30 a.m. Grand Island Sr. High Grand Island2 NCSA Executive Board 9:00 a.m. NCSA Lincoln6 Tech Boot Camp 8:00 a.m. ESU #6 Milford7-9 NCE Conference 8:00 a.m. Younes Conference Center Kearney10 NASES Region II 11:00 a.m. NCECBVI Nebraska City23 NCSA Golf Tournament 12:00 p.m. Wilderness Ridge Lincoln

NATIONAL CONVENTION DATES

NAESP – April 7-10, 2011 – Tampa, FLASBO – September 16-19, 2011 – Seattle, WAAASA – February 16-18, 2012 – HoustonNASSP – March 8-11, 2012 – Tampa, FLNAESP – March 22-24, 2012 – Seattle, WA

Page 23: NCSA Today Magazine, Spring 2011

Bronze Sponsorships

Gold Sponsorships

Silver Sponsorships

ARCHI + ETC. LLCCristy Joy6500 Holdrege St., Ste 007Lincoln, NE [email protected]

Crouch Recreational DesignEric & Nicole Crouch6946 N. 97th CircleOmaha, NE 68122402-496-2669nicole@crouchrecreation.comwww.crouchrecreation.com

Benchmark 4 ExcellenceRick Imig1411 Rodeo BendDickinson, TX 77539281-910-0113rick@benchmark4excellence.comwww.benchmark4excellence.org

Nebraska Public Agency Investment TrustBecky FergusonPO Box 82529, Lincoln, NE [email protected]

Alert NowJeff Enoch4000 Westchase Blvd. Suite 190Raleigh, NC [email protected]

AmeritasAl Eveland5900 O St., 1st FloorLincoln, NE [email protected]

John Baylor Test PrepJohn BaylorP.O. Box 30792Lincoln, NE 68503402-475-7737john@johnbaylortestprep.comwww.johnbaylortestprep.com

CDIPaul Copeland130 South Town Centre Blvd.Markham, Ontario L6G 1B8 [email protected]

DLR GroupPat Phelan, Whitney Wombacher400 Essex Ct., Omaha, NE [email protected]

Engaging TechnologiesDustin Frank6157 S. 178th StreetOmaha, NE [email protected]

www.engaging-echnologies.com

Innovation in Education–Houghton Mifflin HarcourtDonna Droge6140 SE 53rdTecumseh, KS [email protected]

Learning TogetherJulie Smith5509 B W. Friendly Ave. Ste 201Greensboro, NC 27409866-921-0000julie@learningtogether.comwww.learningtogether.com

Horace MannCindy Dornbush10612 Monroe Street, #4Omaha, NE [email protected]

National Institute for Direct InstructionAmy JohnstonPO Box 11248Eugene, OR [email protected]

National InsuranceMike Boden9202 W. Dodge Rd., Ste 302Omaha, NE [email protected]

NLAFBarry Ballou455 S. 11th St.Lincoln, NE [email protected]

SchoolFusionCarson Apps999 18th St., Ste 2150South TowerDenver, CO [email protected]

TRANEDanny Szegda5720 S. 77th St.Ralston, NE [email protected]/omaha

Virco, Inc.Dan Atha1230 Footprint Ct.Castle Rock, CO [email protected]

Wells FargoJenni Christiansen1248 O StreetLincoln, NE [email protected]

www.wellsfargo.com

Awards UnlimitedLarry King1935 O St., Lincoln, NE 68510402-474-0815larryking@awardsunlimited.comwww.awardsunlimited.com

D.A. Davidson & Co.Dan Smith1111 N. 102nd Ct., Ste 300Omaha, NE [email protected]/ficm

Humanex VenturesKatie Shanahan2900 S. 70th StreetPark On, Suite 100Lincoln, NE [email protected]

www.humanexventures.com

JostensDon Bartholomew309 S. 8th St.Broken Bow, NE [email protected]

Page 24: NCSA Today Magazine, Spring 2011

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