November 17, 2004 Volume 9, Issue 5

YOU ARE THE “U” IN UNION!

Scholarships!
CFT Raoul Teilhet Scholarship is available for graduating seniors who are children or dependents of CFT Members in good standing. Scholarships of $3000 are awarded for a four-year university; $1000 scholarships are awarded to attend a two-year school. Applications for High School Seniors are due January 31, to obtain an application go to www.cft.org.

Robert G. Porter Scholarship Program, the American Federation of Teachers (AFT) awards four $8000 scholarships to high school seniors who are dependents of AFT members. To learn more go to www.aft.org or email porterscholars.aft.org or call (800) 238-1133 extension 4457.

Union Plus Scholarship Program, Union Plus and AFT offer scholarships of $500 to $4000 to union members, spouses, or dependents who have one year continuous union membership. To learn more, go to www.aft.org or www.unionplus.org

For more information on these scholarships you may also contact the union office at 722-2331

Upcoming Dates:

• Next General Membership/Building Rep Meeting will be December 13, 2004 from 4:00-6:30pm in Conference Room C
• Veteran Building Rep training will be: November 29, 2004 at 4:00pm in Conference Room C
• New Building Rep training will be: December 15, 2004 at 4pm in conference room C
• Remember § 125 sign up and changes deadline is November 30, 2004
• Buy Union Week is November 26-December 5, 2004.
• PVFT Holiday Party will be on December 21, 2004 at Green Valley Grill from 4 to 6pm

Happy Thanksgiving!

ARE WE TOP HEAVY OR NOT?

THE MANAGEMENT AUDIT FINDINGS
School Services of California recently completed a comprehensive management review which looked closely at the ratio of administrators in the district and the cost effectiveness of housing the district offices and other programs at the Towers. Five districts were used in the comparison study along with a state-wide databank that School Services has access to. The districts used were chosen based on ADA, demographics, and categorical funding levels. The districts who responded to their survey and who were therefore used in the audit were Coachella Valley, Fairfield-Suisun, Folsom-Cordova, Madera, and Manteca.

Their findings showed that PVUSD had above average school site administrative expenditures, but they had lower than average nonschool site administrative costs with Special Ed. and Migrant staffing above average. The study did not take into consideration that we are our own SELPA and that we are our own Migrant region, both of which make the district unique in how they staff these departments. The total classroom expenditures as a percent of the budget were the lowest of the comparison group at 63.8% compared to the statewide average of 69.7%. When looking at District Office staffing, excluding Migrant Ed and Special Ed, PVUSD ranked third at 40.2 with the six district average at 40.0.

When looking at the zone structure in the district the report found that the positive outcomes were responsiveness to the Zone community and a vertical integration of school program within each Zone. On the negative side were greater administrative costs, curriculum and textbook differences across the district. The challenges included clear and consistent District communication and unified District-wide goals.

Other major findings of the report included: Board policies should be updated; jurisdictional conflicts between departments go unresolved; communication with Board, school sites, and public should be improved; Facilities, Maintenance, and Technology Departments need to improve communications among the three departments and with the school sites; operational changes that impact school sites are not explained thoroughly nor in a timely manner; orientation toward customer service can be improved by the entire District Office; and work order process needs improvement. There were some suggestions to change administrative staffing, but when taken within the entire report, the net change in staffing was zero.

The audit determined that the Towers complex offers the best option of the District Office given the price/features of the complex. Splitting the office is ill advised because it would decrease efficiency and use of other district sites is not feasible because of limited space. The report concluded that the District should consider negotiating a lease/purchase agreement, after appraisal of the Towers complex.

Their conclusions were:

• Zone structure should be reevaluated in light of the District's current needs.
• Proactive management of issues identified in the District Office would improve school operations.
• Administrative expenditures – particularly at the school site- should be rigorously evaluated.
  • Towers complex is a reasonable choice for the administrative facility.

BENEFITS: FACTS AND FIGURES

As the news is deluged with information regarding the crisis in the national healthcare system, and locally, as PVFT members are being asked more and more to modify the coverage that we have, some facts and figures from the PVUSD healthcare benefits program seem appropriate and timely.

As many employees know, PVUSD healthcare is a self-funded program where the premiums are paid into our own fund, and the claims are paid directly from that fund. In other words, the district writes the check to the doctor or hospital or pharmacy. Due to the high volume of users, Blue Cross can negotiate better rates with the providers which helps to keep the costs somewhat under control. To put this into some kind of real perspective, the following information may prove to be helpful to members.

Last year the premiums paid by the district and employee contributions amounted to $19,710,231.38 while the total costs to the fund was $20,982,108.89 (this amount includes $19,111,322.57 in claims, $1,211,944.68 in administrative costs (Coastal), and $658,841.64 in stop gap insurance premiums which protect the fund from catastrophic illness impacts). Thus the total expenditures compared to the total income was 106.45%! Obviously, this percentage should be well below 100%, somewhere in the 80% range, for the fund to stay healthy.

How these figures break out should give some clarity with what is pushing the system to the limit. Keep in mind that all figures in this article pertain only to the medical portion of the coverage and do not include dental and vision claims and payments.

During the last fiscal year the total number of claims for medical services, both hospital and professional were 5,230 with a total of paid claims amounting to $14,678,760. The average payment per claim was $2,854. The savings to the fund through negotiated contracts with doctors and hospitals was $23,089,937. In other words, the difference between the billed claim and the allowed payment resulted in the above savings. Without these contracts, the fund would have been bankrupt long ago. This should illustrate, also, the importance of seeking out a network doctor or a PPO hospital to contain the cost to the employee also.

Prescription costs are another area of concern to the plan, both nationally and locally. In PVUSD last year, 64,922 prescriptions were filled which cost the fund $3,930,985 while the amount of paid out of pocket by employees was $22,430. When one looks at the difference between the cost of generic prescriptions compared to brand name, the problem becomes more evident. The average cost paid for generic prescriptions was $18.60 while the average cost of brand name was $90.39. When looking at the cost of formulary vs. nonformulary prescription costs, the averages are $55.38 vs. $92.95.

These facts and figures from the district plan will hopefully aid in the understanding of the costs and need for containment that the plan is experiencing. Although the crisis is national, the district is experiencing the repercussions locally and will continue to until a larger scale solution to the problem is found.

Know Your Contract: Grievances (Part III)

If the grievant is not satisfied with the decision rendered at Level II, the Union shall have exclusive right to submit the grievance to arbitration. Within ten days after the receipt of the decision rendered at Level II, the Union shall submit notice in writing to the Superintendent, calling for arbitration. A) An impartial arbitrator shall be selected jointly by the Union and the District within ten days of receipt of the written request. In the event the parties cannot agree upon an arbitrator, the American Arbitration Association rules shall apply with respect to selection of an arbitrator. B) The arbitrator shall render his/her decision within 30 calendar days after the close of the hearing unless both parties mutually agree to extend the time. C) The District and the Union may agree upon a list of up to 5 mutually acceptable arbitrators who may be requested to conduct an arbitration hearing and render a recommended decision. If a list is agreed to, selection of an arbitrator shall be by lot, subject to his/her availability within a reasonable period of time. After hearing the evidence, the arbitrator shall submit their findings and decisions in writing to the District and the Union. Not later than the second regular Board Meeting following receipt of the arbitrator's decision, the Governing Board shall take action on the arbitrator's decision and shall communicate that action to the Union and the grievant. PVFT Contract , Article XVI

Consult the Union office for any questions regarding Grievances.

Joe Mani l di
Not your average Joe J“Joe”
734 East Lake Avenue, Suite One Watsonville, CA 95076
I help teachers buy and sell homes!
joemanildi@yahoo.com www.tricountyrealestateservices.com
Bus 831.722.3188 x 121, Fax 831.722.7899, VM 831.722.3017 x 121

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