Board seeks to eliminate 'perk'

Jay School Board members want to end a longtime insurance benefit for administrators.
But there’s not yet any clear consensus on how to go about it.
For years, Jay Schools administrators have enjoyed a $1 a year annual premium for medical insurance. It’s a “perk” that has rankled not only taxpayers but also members of Jay Classroom Teachers Association, who have seen their insurance premiums rise while coverage shrinks.
The board has identified the $1 insurance as benefit that needs to be eliminated during a time when budgets are tight and state support is falling because of declining enrollments. There’s been an effort to phase the benefit out, but six administrators still enjoy the $1 premium.
“It kind of goes around in a circle and never gets decided,” board member Beth Krieg said at Monday night’s board meeting.
Board member Ron Laux, who has raised the issue repeatedly, expressed frustration that the issue never seems to be resolved.
“If I am the problem, just tell me I am,” said Laux.
“That’s a misconception,” responded board member Kristi Betts, who has also targeted the $1 premium.
Board president Mike Masters urged the board to take some sort of definitive action.
“It’s time to have this conversation publicly,” he said. “We’re fragmented. We’ve got to come up with a consensus. … I’m not interested in kicking the can down the road.”
But some board members were not about to be pushed on the issue.
“I am not prepared to vote on it,” said board member Mike Shannon. “I don’t think tonight’s the night to do this.”
“I don’t think it’s a surprise,” said Betts. “Let’s just get it over with.”
“It does need to be addressed soon,” said Shannon. “The problem with the $1 insurance has been addressed, but we’ve never been able to get a board to address it without creating collateral damage for our staff. … I want it to be the right decision.”
Tabled until the board’s May meeting is a proposal put together in February by business manager Brad DeRome that would eliminate the $1 insurance benefit while at the same time providing pay increases to those administrators who would be affected in order to soften the blow.

DeRome’s February proposal would:
•End the $1 annual medical insurance benefit as of Dec. 31, 2015 for administrators Anne VanHorn, Jeremy Gulley, Trent Paxson, Steve Boozier and DeRome himself.
•Would not eliminate the $1 insurance benefit for superintendent Tim Long, which cannot be done without a public hearing. Long’s contract expires June 30, 2016.
•Provide pay increases of about $6,000 a year to the five administrators losing the $1 insurance benefit. Single plan coverage through the school corporation costs about $7,000 a year, while family coverage costs about $16,000.
•Freeze pay for those administrators for at least two years.
Board members did get some good news as they continue to struggle with containing costs: Medical, dental, and vision insurance coverage will not increase in the year ahead.
“Getting off that self-funded carousel did some good for us,” said Long, noting a change made by the board last year.
Still, because of declining enrollment, DeRome expects state basic grant revenues to be down about $192,000 this year. That’s better than earlier estimates and is still subject to change since the Indiana General Assembly is still in session.
The administration continues to look at ways to improve cash flow when faced with cuts in state support.
Those include not only reductions in staff but also one-time solutions such as refinancing bond debt and selling off excess school property.
Board members unanimously approved going forward with refinancing about $13 million in bond debt. It’s expected the savings from lower interest rates will allow the corporation to pay off a $1.3 million energy savings loan. Payments on that loan had been made through the capital projects fund, so the savings should free up cash in that part of the budget.
The board is also going forward with the sale of two properties: The former Beacon drive-in property south of Jay County High School and the former Garfield School building, which has served a variety of purposes over the years.
Attorney Phil Frantz explained that the sale of the Beacon property is simpler because it is bare ground that was donated to the school corporation. Because the Garfield building had been a school, a waiver was needed from the Indiana Department of Education before it could be sold.
That waiver has been received for the 404 E. Arch St. building, and Frantz will move forward with the process for sale.
Two entities — MyFarms and the Youth Service Bureau of Jay County — have expressed interest in the Garfield building.
Frantz noted that the bid process for the Garfield building will be somewhat unusual under state law. Rather than sealed bids, it will be an open process. “It’s kind of like a silent auction,” said Frantz.