Present: Carol Vallencourt, District 1; Carol Studdard, District 2; Frank Farrell, District 4 and Lisa Graham, District 5. Superintendent Ben Wortham was also present.
Charles Van Zant, Jr., District 3 was not present for the workshop.
2. Financial Review
Dr. George Copeland, Asst. Supt. for Business Affairs, reviewed the following items and their impact on the 2010-2011 budget: the increase in Retirement Rate from 9.85% to 10.90%; the implementing of the Class Size Amendment; the opening OakLeaf High School; our declining state revenue and declining property values since 2008; the reduction of the Base Student Allocation and Per Pupil Funding since 2007-2008; Property Tax Collection Rate from 95% to 96%; the reduction in State Fiscal Stabilization Revenue, the reduction in .25 Mill State Guarantee and along with State Lottery Funding reduction since 2007-2008; and an increase in Unemployment Compensation costs and Workers Compensation Contribution to meet actuarial requirement. Dr. Copeland provided graphs of the declining Fund Balance from 2007-2008(actual) to 2011-2012 (projected). Dr. Copeland reminded the Board that the majority of our budget is salaries and benefits.
3. Health Insurance Review
Dr. Copeland introduced Ms. Ann Gebhard, Vice President of Aon Consulting, who explained the RFP process. On March 22, 2010 the District Purchasing Department released a request for medical plan proposals from Aetna, AvMed, Blue Cross Blue Shield of Florida (BCBSFL), Cigna, Humana and United Healthcare (UHC). Additionally, the RFP was posted on the District website and advertised publicly through local media. Vendors were directed to respond to the District Purchasing Department and responses were evaluated by the RFP Committee based on net cost considerations, carrier qualifications, benefit provisions, administrative service capabilities, disruption and overall response. On April 21, the RFP Committee voted unanimously to eliminate AvMed. On April 27, updated plan designs, provider reports and additional information were submitted by Aetna, BCBSFL and UHC. Scoring worksheets were completed and submitted to the RFP Committee Chairperson. BCBSFL scored lowest in every category and was eliminated by unanimous Committee vote. The Committee selected Aetna and UHC as RFP finalists. The Insurance Committee voted to keep medical with Aetna, with a 3.9% increase to total plan cost. The three medical plan options will be Basic HMO, Premium HMO, and High Deductible Health Plan.