March 19, 2024

Memberships, consulting fees add up for school district

Board renews with Perspective Consulting

“It seems like all of these services cost us about $15,000 a year.”

That’s what Newton Community School District board of education member Andy Elbert said Monday while contemplating the latest in a series of membership renewals for the board. Within the past few meetings, the NCSD board has been going through the annual process of reviewing the district’s membership in various support organizations and private companies that consult and/or offer other assistance to school districts.

Elbert was approximating a cost in terms of what Newton Schools pay to each entity, but the figure he mentioned was triggered by an exact $15,000 the board decided to spend at Monday night’s regular board meeting. The board unanimously approved an annual renew of a contract with Perspective Consulting Partners, LLC.

The Urbandale-based consulting firm helps the district shop the market for health, optical and dental insurance rates, and offers guidance with what NCSD Director of Business Services Gayle Isaac called “a wide variety of questions and choices regarding group health insurance and other benefit packages.”

Isaac said Perspective normally charges $30,000 annually as a base consulting fee. However, he is in regular contact with Perspective’s staff and said he was able to obtain a discount rate for Newton Schools. The board packet for Monday’s meeting contained a pricing sheet titled “Newton Community School District” that included a base price of $15,000 for basic consultation services.

At its April 13 meeting, the board voted to approve two annual memberships. NCSD will spend $9,182 on its 2015-16 membership with the Iowa Association of School Boards and $2,802.50 Iowa School Finance Information Services.

While these amounts are small in a heavily categorized and earmarked district budget that will total about $39 million in expenditures next year, all costs add up, and give board members pause to examine each one. This is especially true in years such as 2015-16, as Newton and other districts have assumed zero additional state aid with the Iowa legislature deadlocked on state aid.

Elbert asked if any of the support organizations offer any overlap in services, or if some are redundant. Isaac said the IASB offers insurance information, but it isn’t the same as bringing in a specialist such as Perspective.

“The IASB has insurance information, but they just kind of shoot it out there,” Isaac said. “Perspective has a much more personal touch.”

Isaac said Perspective has “made money” for Newton staff members, not in terms of actual dividends, but in terms of helping keep employee premiums at or close to the same levels as a prior contract year.

Perspective is not a broker and doesn’t work off commissions, so there is incentive to provide Newton with a wide variety of choices, rather than promote any expensive health plans.

Isaac said the staff has been very helpful and responsive within the past couple of years that he’s been with the Newton district. He mentioned several Perspective employees by their first names only, and he praised the firm for its knowledge and help with the Affordable Care Act regulations, which he called “a nightmare.”

Superintendent Bob Callaghan wasn’t at Monday’s meeting, as he was in Pella at the Little Hawkeye Conference track and field meet, watching his son compete. Isaac said the district is almost at the point where the district can “self-insure” and shop for insurance plans on its own, and said he’s ready to try that with dental plans only in a year or so.

However, he cautioned, making that jump with all three major areas of medical benefits (medical, optical and dental) is a large commitment that must be well-planned. The board will hold a regular meeting May 18 and will host an open public budget amendment meeting May 26. Both meetings will be at Emerson Hough.

Board member Robyn Friedman drew some laughs from many in the room when pointing out what level of organization self-insuring might entail.

“I think we’ll at least need an inspired insurance committee before we’ll be inspired to self-insure,” she said.

Contact Jason W. Brooks at 641-792-3121 ext. 6532 or jbrooks@newtondailynews.com