A PUBLICATION OF THE NEW JERSEY ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
Volume XXIIII
No. 1
October 2007
KEY POST
Sunsational Schools:
Harnessing Financing to Go Solar
How to LEED with Green
SBA Reaches Pinnacle
Photograph courtesy of Howard G, Buffett (c) 2004
The Nature
of
The Beast
When it comes to providing a superb insurance program,
Brown & Brown understands the nature of the beast. More
than just insurance professionals, Brown & Brown has the
industry expertise to understand the unique needs of the
Employee Benefits
•
public sector including school districts.
Commercial Insurance
Flexible and agile like a cheetah; Brown & Brown uses a
targeted approach to meet its clients’ objectives with keen
•
Personal Insurance
accuracy and efficiency.
The success of Brown & Brown is rooted in their zealous
commitment to exceeding their clients’ expectations while
maintaining the highest ethical standards.
A recognized national leader with a regional expertise, Brown
& Brown delivers on all your local insurance needs from a
position of market strength.
Brown & Brown Metro / 26 Columbia Turnpike Florham Park, NJ 07932
973-549-1900
president’s
communiquè
Christopher J. Russo, RSBA
NJASBO President
By the time you read this article it will be October and you’ll be completing the ASSA, preparing for the Fall School
Boards Workshop, returning from ASBO International, and initiating the budget process. It’s almost two months into
the school year and hopefully everything is running smoothly. I understand the word “smoothly” is subjective.
The executive committee of NJASBO had a busier summer than usual. We met in July and August for work
meetings and had a trustees meeting in August. During that time we had to interview for the assistant executive
director position. This was personally one of the toughest decisions that I’ve had to make. The successful
candidate, Mr. Bruce Quinn will be an excellent complement to the executive director. Mr. Quinn’s calm resolve will
be the Yang to the Ying of Mr. Donahue’s fire and brimstone.
The trustees meeting in August was born from the concept of wanting to increase communication throughout the
organization. Outgoing trustees and incoming trustees were both invited to assist with communication. The meeting
was used as a seminar to instruct the incoming trustees on the processes and procedures of NJASBO. The role of
the trustee was explained. The need for dissemination of information from the trustee meetings to the county
meetings is crucial to the success of the organization.
The feedback from the county meetings is needed for the executive committee to represent the members of your
organization. There will be a “successful practice” portion of each meeting so each county can share some of
their county’s expertise. It’s called “successful” and not “best” because what works for one district may not work
for another.
The new Web site was rolled-out at the meeting. The “help” section is now similar to a “blog” format in which all
members can correspond. Please realize now that your answers are “live” and everyone that logs-in can see them.
Remember to be professional in your responses.
The NJASBO Web site should be open on your computer all the time in your office, minimized or maximized, and
you should interact with your peers as notices indicate that someone has a question. It can be used as a real-time
reference tool.
Chapter 53, known as A5 is something we’re dealing with and examining given its restrictive wording. Is your district
paying for board members’ attendance at county NJSBA functions? Are you participating in ACT and ACES? Why
is the language in the law different for the two organizations? Why “must” you participate in one and “should”
participate in the other?
Does the Legislature realize that their language caused a successful energy consortium in South Jersey to “kickout” school districts because of the concern over state aid reduction? Does the DOE realize the impact this
legislation has had on school districts including making the professional development process more difficult? As the
executive county superintendents start their new roles will they, along with the DOE redefine “thorough & efficient”?
In closing, I want to thank the members of the organization for their patience and support through the very difficult
changes that have occurred over the last several months and we look forward to serving the organization and
continuing its success.
in this issue
Cover Stories
Sunsational Investment – Page 16
Forward thinking school districts are going “green” by taking a proactive approach and investing in solar
panels. Read this primer on funding options to pave the way to solar solutions for your district.
To LEED or Not to LEED – Page 12
Utilizing sustainable building technologies to create green buildings gives all of us an opportunity to LEED.
This article defines LEED and examines how we can all play a role in going green.
Pepe Reaches the Pinnacle – Page 10
School Business Administrator Lou Pepe is the distinguished recipient of a Pinnacle Award from ASBO
International. Read his account of the award-winning program he helped to implement in his district.
Features
Ready, Set, Take Action – Page 24
With the new IRS 403(b) plan regulations around the corner, now is the time for school districts to take action.
This article carves out some necessary steps to get you started.
Wishful Thinking – Page 14
Securing grants for your school district can be more than just wishful thinking. Take note of these tips to go
after creative funding for your innovative programs through grants.
Get Ready for E-Rate – Page 18
This detailed article carves out tips a district can initiate to gain a better understanding of E-Rate with better
utilization of the program.
Art vs. Science: Architecture Defined – Page 22
Architecture defined is the art and science of designing buildings. Is it science, art or a delicate balance of
both? Jeffrey D Venzia, AIA discusses the importance of choosing the “right” architect for a project.
In Every Issue
President’s Communiqué
Executive Director’s Report
Reinhart Report
Advertisers’ Directory
Picture Perfect
End Notes
KeyPost is the professional journal of the
New Jersey Association of School Business Officials
and is published quarterly.
2007-2008 Officers
Christopher J. Russo, RSBA, President
Debra Naley-Minenna, RSBA, President-Elect
James Edwards, RSBA, First Vice President
Kateryna Bechtel, CPA, Second Vice President
Anthony M. Del Sordi, RSBA, Immediate Past President
KeyPost Publishing & Advertising
Carroll Consulting Group
[email protected]
Editorial Review Committee
Louis J. Pepe, RSBA – Oakland
Mary Jane Canose – Chester
Rita Hanna – Retired
Michele Roemer – Pitman
Laura Venter – Berkeley Township
NJASBO
4 AAA Drive, Ste. 101
Robbinsville, New Jersey 08691
Phone: 609.689.3870
Fax: 609.689.3167
Web address: www.njasbo.com
director’s
report
executive
John F. Donahue, RSBA
NJASBO Executive Director
For the first time, I write as your executive director! I do so with great pride and with the full knowledge that
I enjoy the support and friendship of so many of you. I truly believe that’s why I am in this position and why
I want, more than ever, to make this association a respected leader in the education community. We are a
professional organization representing the financial and operational leadership in the public schools of this
state. We play a vital role in the economic and social development of every New Jersey community.
As I look back over my tenure with NJASBO, I have built a reputation as a person you can go to for help.
You can call me and “bounce” ideas off me. You have often contacted me for advice. If I don’t have the
answer, I will go get it. And if I don’t know the answer or where to find it, I’ll tell you that as well. Of
course, I hear and learn a great deal by attending and participating in our professional development
programs. This is where I stay on top of current issues and maintain field contact with our members.
This, I can not give up!
For that reason, I will not be the typical director. I’m not exactly sure how I will redesign and reorganize
our operations but it will be a challenge that I welcome. Our new assistant director, Bruce Quinn, should
be on board on or about the time you are reading this. I must say that we had a wonderful list of wellqualified candidates and I thank all who applied. I offer special thanks and appreciation to the finalists.
We certainly have our challenges cut out for us. This past year has simply been incredible. Never have
we seen such a broad array of legislation that has and will change the way we prepare school budgets,
how we negotiate and make public personal employment contracts, changes in pension laws and benefits,
new restrictions on travel for board members and employees, and all of this is punctuated by sanctions
if we should fail to comply. And probably one of our greatest challenges is facing and dealing with
this matter of consolidation and the sharing of services. Make no mistake, we will face them and
we will act in the best interest of the public we serve and the membership we represent.
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
Bruce and I, Lisa, Annette, and Cathy have one major goal—to serve our membership. We have over 600 active members
(full time business officials), 125 associate education members (assistant BA’s and other operational personnel), 250
associate business members (businesses.)
We are exploring new ways to serve our membership and we welcome your recommendations. We have put in place a
committee to develop a common list of “resolutions” that will be available on our new Web site. We plan on highlighting
“successful business practices” at our state meetings and posting them on the Web site as well. I’m currently working with
ASBO International to offer a new service (School Business Daily) to all of our members in NJASBO.
I look forward to working with Bruce and our staff here at NJASBO
to meet all of the challenges, but most of all to simply know
that we are all working to help all of you!
7
REINHART REPORT:
NEW LEGISLATION BRINGS RETIREMENT CHANGES
FOR NEWLY ENROLLED AND CURRENT EDUCATORS
Mort Reinhart
NJASBO Pension Consultant
Author’s Note: As a result of two pieces of
2007 legislation, Chapter 92 and Chapter
103, the New Jersey retirement picture,
particularly for public employees initially
enrolling in the Teachers’ Pension and
Annuity Fund and the Public Employees’
Retirement System after July 1, 2007, is
going to undergo significant changes this
year and far into the future. In addition to
changes affecting those who enroll after
July 1, 2007, the legislation calls for
changes in several areas (contribution rate,
loan interest, and possibly, health benefit
choice) for employees who have been in the
system for many years. This is the first in a
series of columns that will explore the
changes resulting from the legislation.
As of July 1, 2007, the two major
pension systems covering New Jersey
public employees Teachers’ Pension
and Annuity Fund (TPAF) and Public
Employees’ Retirement System (PERS)
officially became two-tier systems,
providing different retirement
benefits for all new employees
enrolled AFTER July 1, 2007 than
existed (and continue to exist) for all
employees enrolled in the systems
prior to that date. This situation is a
result of two new laws: Chapter 103 of
the Public Laws of 2007, signed into
law on June 28, 2007 and Chapter 92
of the Public Laws of 2007, signed into
law on May 9, 2007.
While the major changes of the laws
will NOT affect those already in the
systems, the legislation does create
the possibility that co-workers will find
themselves with different retirement
situations which could, in a very short
time, lead to morale issues between
those with the greater benefits and
those with the lesser benefits.
The laws also introduce a new pension
concept - a defined contribution plan for members of TPAF and PERS
enrolled in either system after July
1, 2007 whose salaries exceed a
maximum compensation amount. Prior
to July 1, 2007, all TPAF and PERS
members were enrolled solely in a
defined benefit plan regardless of the
amount of their compensation.
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
In a defined benefit plan, the retirement
benefit of an individual is determined
by some set of factors (usually a
formula) that produces a lifetime
monthly check to the retiree and, where
applicable, continues to a beneficiary
after the retiree’s death. Both TPAF
and PERS are defined benefit plans.
“In a defined contribution
plan, a contribution
is made every month by
both the employee
and the employer into an
individual account
maintained in the
employee’s name.”
In these two plans, the employee
makes a contribution each month into
the system (5.5% of salary effective
July 1, 2007) and the employer makes
a contribution annually, the amount of
which is determined by the plan’s
outside actuary. The actuary values
the plan assets (its investments) and its
liabilities (the amount owed to all the
current members of the system
according to their years of credited
service and their salaries) and tells the
employer how much must be
contributed to keep the system
appropriately funded.
In New Jersey, the State contributes
the employer’s share for all members
of the TPAF, while the local entity (the
state for state employees, the county,
the local municipality, or the board of
education for non-educational
employees) contributes the employer’s
share for its employees.
In a defined contribution plan, a
contribution is made every month by
both the employee and the employer
into an individual account maintained in
the employee’s name. The value of the
account at retirement can be withdrawn
by the retiree in a lump sum or it can
be converted into a lifetime monthly
check (annuity). If an annuity is
chosen, the amount of the monthly
check is determined by using such
actuarial factors as age, assumed
interest rates, beneficiary, etc.
Nothing in these laws will directly
affect the retirement formula or early
retirement benefits of members of
the educational community (TPAF or
PERS) who were enrolled prior to
July 1, 2007. They will NOT be
affected by the maximum wage base
provisions of the legislation nor the
additional early retirement penalty
between ages 55 and 60 (see below).
For purposes of understanding the
concept of two-tier systems, let us call
the defined benefit systems which have
been in existence since 1955, which
treated all employees in exactly the
same manner, Tier A. Let us call the
new systems, which will treat new
employees enrolled after July 1, 2007
differently from those who were
enrolled in the systems prior to July 1,
2007, Tier B. (The Tier A and Tier B
designations are my creation; at some
point, the Division of Pensions and
Benefits will have to provide titles to
designate between the two different
sets of benefits.)
The major differences between Tier A
and Tier B are in the areas of (1)
pensionable salary, (2) early retirement
penalties and (3) the introduction of a
defined contribution plan for employees
whose salaries exceed a certain
compensation limit.
Under Plan A, a retiring educator’s
pension is based on a formula: years of
credited service (N) times the final
average (FAS) salary divided by 55.
(N/55 times FAS). The final average
salary is the average of the three
highest years of full salary.
Under Plan B, affecting all new
employees, the basic formula of credited
service (N) times the final average (FAS)
salary divided by 55 (N/55 times FAS) will
remain the same. However, the final
average salary will be based on the
annual Social Security maximum wage
base, which in 2007 is $97,500.
Educators earning more than the Social
Security maximum wage base will be
enrolled in a new system called the
Defined Contribution Retirement Program
for any compensation above the Social
Security maximum wage base.
When the Plan B enrollee retires, s/he will
receive a benefit based on (1) the formula
(N/55 times final average salary) with the
final average being determined by the
three highest Social Security maximum
wage bases and (2) a benefit based on
the value of the Defined Contribution
Retirement Program. (The details of the
Defined Contribution Retirement Program
are currently being promulgated.)
The difference between the monthly
pension benefits could be significant since
the compensation of many educators (and
most administrators) is higher than the
Social Security maximum wage base, and
numerous studies show that it is
extremely difficult to equal the defined
benefit retirement allowance through the
use of a defined contribution plan.
Therefore, those educators entering
the TPAF and PERS after July 1, 2007
whose salaries exceed the annual
Social Security maximum wage base
will undoubtedly retire on smaller
pensions than those who were already
enrolled prior to that date.
retirement penalty provisions for anyone
retiring before age 60. Currently, the law
provides an early retirement penalty of
3% for each year a person is under age
55. That penalty will remain for members
of the system, regardless of date of
enrollment. However, for those who enroll
in the system after July 1, 2007, an
additional penalty of 1% per year will
apply to anyone who retires between the
ages of 55 and 60. This has the
consequence of adding a 5% penalty to
anyone who retires before age 55.
“Nothing in these laws
will directly affect the
retirement formula or early
retirement benefits of
members of the educational
community (TPAF or PERS)
who were enrolled prior to
July 1, 2007.”
Future columns will explore changes in
the pension contribution rate, the increase
in the interest charged for loans, the
details of the new Defined Contribution
Retirement Plan and a number of other
changes related to the two laws.
A second change in the systems affecting
educators enrolled in the system after
July 1, 2007 will increase the early
9
FIRST WHO, THEN WHAT:
IMPLEMENTING EFFECTIVE CHANGE
THROUGH QUALITY TEAM BUILDING
Louis J. Pepe, RSBA
Oakland School District
Editor’s Note: ASBO International has
recognized Lou Pepe’s work in the
Oakland School District with a Pinnacle
Award. This article was prepared to give
insight into the program that earned the
school district top honors.
Our idea was to effectively implement
change through quality team building
designed to improve the custodial
maintenance operations of the district
while providing an environment that is
safe, secure, clean and conducive to
learning! Building a team that worked
well together required focus, a clear
understanding of district goals,
creativity, communication and tenacity.
The work, very simply was to
professionalize the custodial
maintenance staff, enhance each
employee’s professional self-concept,
inculcate values, and create a vision
that would motivate people to high
achievement.
The goal of our project was to find the
“right people” who view their duties as
a responsibility rather than a job.
Upon my arrival in the district in 2003,
building systems had deteriorated and
were in constant need of repair,
morale was poor, and community
support had begun to erode as
evidenced by two failed referendums
(2004, 2005) as well as the school
budget in 2005.
MAKING A DIFFERENCE
IN STUDENT
ACHIEVEMENT
members of the custodial maintenance
operation into a core district team.
Others began to see that it was
possible to advance based on
performance and negative influencers
were soon quelled with departures
from the district in some cases. Thus
our team building approach led to
higher productivity and overall
motivation as individuals were
recognized for their accomplishments
and began to see themselves as an
integral part of the overall process.
“This approach to effective
team building can be
easily assimilated into any
district regardless of size,
organizational structure
or resources.”
By identifying leaders within our
organization through promotion and
re-assignment in addition to hiring
successful new personnel from the
outside, we were able to integrate all
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
This in turn resulted in cleaner
buildings through successful district
projects that included revitalization of
classrooms and general learning
areas. We reclaimed classroom space
through in-district demolition,
remodeling and construction led
projects, and re-allocating office and
storage space. Successful site-based
security programs were implemented
including ID badges, perimeter
checks, exterior window and door
numbering, installation of security
cameras, and window and door
replacement programs.
Success also translated in two
successful facilities bond proposals
(2006 and 2007) totaling $3.8 million
dollars that included new roofs at two
elementary schools and a new roof and
boiler system along with 17 new unit
ventilators and 69 new panel radiators
at the middle school. Additionally, a
new fire alarm system and continued
roof replacements are scheduled for
this summer at the middle school and
replacement/upgrades of the electrical
systems at all four schools.
The culmination of these successful
outcomes provided for a safer
environment conducive to learning. In
2006, students in grades 3 through 8
outscored the state, county and District
Factor Group (DFG) in 13 out of 14
indicators on statewide standardized
testing. Additionally, community
support and public confidence was
restored with passage of the annual
school budget in 2006 and 2007.
COST ANALYSIS
In analyzing the costs of this initiative,
one must focus on ROI (Return on
Investment). Overall program costs for
maintenance of facilities and
maintenance of plant services
increased by $23,120 or 1.2% in the
2006-2007 operating budget for a
combined cost of $1,895,542 on a $23
million dollar budget.
Fund 12 Capital Outlay experienced a
dramatic increase of $514,401 or 309%,
with $631,857 allocated to construction
services and repairs of
building/maintenance. At the same
time the district was successful in
achieving a Aa rating from Moody’s on
our bonds sold along with a combined
$262,400 facilities grant from the State
and 40%funding or $154,872 per year
in state aid through successful debt
service applications.
“The culmination of these
successful outcomes
provided for a safer
environment conducive
to learning.”
This concerted effort in addressing
critical building infrastructure needs has
enabled the Board and Administration to
craft a facilities/maintenance budget for
the 2007-2008 school year that retains
all quality maintenance operations,
supplies, preventive maintenance
programs, newly enacted service
agreements and introduction of a new
facilities web based management
program, allowing us to maintain a highly
efficient and effective facility
maintenance program that is vital to our
continued success at a reduction of
$20,848 or 1.10% in the general
operating budget. Likewise, the 20072008 Fund 12 Capital Outlay budget has
been reduced to $87,300.
Through direct team member involvement
and initiatives, much of the costs
associated with these projects have been
minimized as a result of in-house labor and
expertise in areas such as cabling for
security camera installations, demolition,
clean up and removal of debris associated
with remodeling, electrical, plumbing,
landscape design, and painting along with
on-site inspection/coordination of
construction projects to assure compliance
with plan and/or specifications, review of
shop drawings, and participation in the
selection of potential bidders/contractors
through careful review of plans and
specifications aimed at decreasing
potential change orders. These activities
have accounted for increased dollars to the
classroom putting our direct classroom
expenditures at 65% for the 2007-2008
school year budget.
“First Who, Then What,” focused on
putting the right people in the right
positions and allowed the district to
employ an innovative approach to team
building given the constraints of tenure,
Continued on page 26
11
TO LEED...
John A. Missell AIA
Managing Director Central/Eastern Region
Foreman Architects Engineers
OR NOT TO LEED
We have all heard a lot about
“building green” and the words
“sustainable design or sustainable
technologies.” The question set
forth today is what is “LEED” and
how does it relate to “green
buildings?”
Administrators and school board
members are charged with
educating our children but they are
also stewards of a tremendous stock
of school facilities. There are many
essential things that they need to
know about LEED as they move into
a facility.
“The engine that
has been designed to drive
this mission is
“L E E D” – Leadership
in Energy and
Environmental Design.”
In 1993, the United States Green
Building Council – USGBC, a 501 C3, non-profit corporation was
founded. It attracted people from
across a broad spectrum to
advocate public policy in the area of
the built environment while reducing
the impact of buildings on limited
natural resources. Its mission is
“the triple bottom line” linking
environmental, social and economic
prosperity as we move into a future
of diminishing resources, increasing
demand and a rapidly-changing
climate. The engine that has been
designed to drive this mission is
“LEED” – Leadership in Energy and
Environmental Design.”
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
LEED is comprised of several
different components. It is a rating
system that establishes ratings on
building components, building
systems and a building’s long-term
operating costs. It is a professional
accreditation program to learn and
renew the understanding of the
many factors that determine the way
buildings affect our environment. It
is also an aggressive series of
research and educational programs.
LEED was created as a long-term,
disciplined response to a series of
staggering statistics and forecasts.
In 2006, the US alone dumped 8
billion metric tons of carbon
emissions into the atmosphere.
Soon the US will not be the leading
contributor of greenhouse gases as
the two Asian giants continue on
their path to rapid development.
There is statistical evidence of
climate change, habitat change, and
temperature increases in the ocean
currents due to the uncontrolled
build-up of greenhouse gases in the
atmosphere over the last century.
LEED provides a path back, based
on economic vitality and
environmental health. It provides a
vehicle to study a building project
comprehensively by examining the
energy and by-product carbon
emissions along with the natural
resource depletion of the building
components to build it.
Taking up the charge of reducing the
energy necessary to create building
materials for the educational
building space that might be
renovated or replaced in the next
few years, while at the same time reducing operational costs - is a
staggering environmental and
economic opportunity.
The American Institute of
Architects (AIA) was at the
forefront in the establishment of
the USGBC. The AIA has gone on
to develop other comprehensive
programs in sustainability,
alternative energy and
environmentally sensitive
construction technologies.
One program, ARCHITECTURE2030,
examines in depth seven distinct
issues from climate change to habitat
change; all supporting new
approaches for designing buildings
with sustainable building technologies.
ARCHITECTURE2030 thoroughly
endorses the facts that support
“catastrophic climate change” within the
next 25 to 30 years. It claims that a
dramatic change in the way we do things
within the next 10 years is imperative or
the effects on our planet will be
essentially irreversible.
The 2030 program looks at total
energy consumption and carbon
emissions by three economic sectors;
transportation, industry and buildings.
Over 50% of our total domestic energy
consumption is in buildings which also
represent over 50% of the carbon
emissions and off-gassing in our
environment. The industrial sector
and transportation sector have
invested in long-term strategies for
greener facilities and operations with
more fuel efficient and alternative fuel
source products.
ARCHITECTURE2030 examines the
great life-changing convergence of our
time--the rapid depletion of global
petroleum and natural gas supplies -while witnessing the warming of the
globe’s atmosphere. Essentially we have
an opportunity of historic proportions to
reverse this trend right now.
“In 2006, the US alone,
dumped 8 billion metric tons
of carbon emission
into the atmosphere.”
and building age, that 50 billion square
feet will be demolished leaving 250
billion square feet. Of that amount,
150 billion will be renovated and 150
billion will be added for a total, in 25
years, of 400 billion square feet. That
means that 75% of the built
environment in the United States will
be new or renovated, becoming prime
candidates for “green buildings,”
employing “sustainable technologies”
featuring a significant reduction in fuel
consumption, operating costs and
carbon emissions.
In 2030, the goal is to roll back fuel
consumption and off-gassing for
buildings to 50% of the current levels
using current technologies through
LEED, giving us the opportunity for a
more carbon neutral society within our
children’s lifetime. It is a script in
which we can all play a leading role.
It is estimated that there is approximately
300 billion square feet of existing
building space in the United States.
Within the next 25 years, it is
anticipated based on economic trends
13
YOUR WISHES?
By Kate Munning
Grants Specialist
Zander Consulting, LLC.
GRANTED.
Year after year many school districts are
You may not know that there are
“In general, those not responsible for
left with a laundry list of programs that
research tools specifically designed to
writing or administering grants perceive
didn’t make it into the school budget.
help you find out about these
them to be ‘found money’” which is
Grants can be a creative way to ease
opportunities, like the Foundation
there for the asking,” Eberhardt added.
the inevitable annual budget crunch and
Center (foundationcenter.org), where
secure a place for some of those
anyone can search for grants by name,
Government grants are notorious for
innovative projects. Any school can get
state, or topic. Sign up at the CNJG
their red tape, while some foundations
a financial boost with grant money by
Web site to receive announcements and
have obscure application requirements.
looking in the right place and using the
requests for proposals (RFPs) from the
Determining the district’s eligibility is the
right strategy.
state. It may seem time-consuming to
first and most important step.
read through them all, but by ignoring
Government grants are the most
them you could be letting the perfect
The best way to avoid these pitfalls is by
commonly known, but corporations and
grant slip through your fingers.
cultivating a good relationship with your
foundations can open an entire new
potential funder. If you have questions,
world of potential. The corporation that
call your grant officer instead of
employs so many of your students’
parents most likely has a community
relations program that contributes
financial support and employee
volunteer hours to nearby schools and
non-profit organizations.
“Don’t spread yourself
too thin;
choose a handful of grants
that you’re most
qualified for and most
likely to receive.”
The Council of New Jersey Grantmakers
submitting the proposal blind and hoping
for the best. Grantmakers often welcome
your questions. By asking them if your
program falls within their guidelines or if
they need a particular form in triplicate,
you’re making their job easier.
Eberhardt knows what works. Her
(CNJG)(www.cnjg.org). has over 100
This brings us to one of the most
district has been able to initiate
members, all of which are foundations
common reasons some districts don’t
programs and secure computers,
that distribute funds throughout the state.
pursue grants: They’re believed to be
videoconferencing equipment, staff
One of the most well-known, the Dodge
time-consuming and not worth the effort.
supplies, and more. As far as she’s
public schools in 2007 through their
“To many people, grants are perceived
effort, especially since “there are always
education program. The grants range
as too much work for the likelihood of
more projects and programs than funds
from civic literacy to professional
being funded or the amount of money
available in the school budget.”
development to leadership training for
received.” Jeanie Eberhardt, grants
inner-city students. Dodge puts an
coordinator for Sparta Township Public
Elizabeth O’Connell, superintendent
emphasis on arts and music programs,
Schools said.
of schools in Freehold Borough, has
Foundation, distributed $3.8 million to
concerned, it’s absolutely worth the
which are often first to be put on the
also been aggressive in pursuing
chopping block when budgets get tight.
Inexperienced grant writers may also
There are dozens of similar foundations,
not realize that funders have very
some that exclusively serve your region,
specific criteria.
county, or town.
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
outside funding.
“Grants have enabled us to create the
21st Century Learning Academy where
we offer after-school programs
can put stress on your district’s
that run from 3pm-6pm. We are
organizational capacity. At the
also able to offer summer
same time, it may be more cost-
programs. Other grants have
effective in the long run to hire a
allowed us to enhance our
grant writer. A good consultant
technology, provide 300 leveled
working closely with your staff
readers for each elementary
could offer insight that enables
classroom, and targeted
you to do your own fundraising in
professional development for the
a few years.
staff.” O’Connell explained.
Partnerships are another way to
But what about time? Every staff
capitalize on your district’s
is overtaxed and every budget is
resources. According to
too small. With the right tools
O’Connell, it is not unusual for
and the right approach, it’s
schools to apply for a grant jointly
possible for any district to apply
for demographic or financial
for a few grants each year.
reasons. She says,
“Occasionally, another district will
Don’t spread yourself too thin;
want to partner with us because
choose a handful of grants that
we have the demographics
you’re most qualified for and
required by a grant.”
most likely to receive. Juggling
too many grants concurrently
Continued on page 28
30 Years of Group Insurance Consulting
As leaders in the public employer marketplace,
we specialize in creating viable alternative
employee benefit programs.
$275 Million Managed Annual Premium
Our large book of business affords us
tremendous leverage when we negotiate with
insurance companies.
18 Full-Time Employees
Our team of professionals is dedicated
exclusively to serving our public employer clients
with high-quality service and policy
administration.
20 Years with the Grinspec Trust
Established in 1985, we are the only fully-insured
medical, dental, prescription drug and vision
trust for New Jersey public employers. The
Grinspec Trust has long been recognized for its
cost-control and rate stability.
Call today to discover how our numbers can
strengthen your employee benefits program
908-665-2200.
219 SOUTH STREET
| NEW PROVIDENCE, NJ 07974
W W W. G R I N S P E C . C O M
15
GO FOR THE GREEN!
Kerry J. Morgan, Esq.
McManimon & Scotland, L.LC.
FUNDING SCHOOL DISTRICT SOLAR PROJECTS
School districts are always on the
lookout for extra money to build into
their already strained budgets. For a
few forward-thinking districts, that
“green” has come in the form of solar
energy. As unpredictable increases in
utility costs can wreak havoc on a
district’s budget, many school districts
are taking a proactive approach and
investing in solar projects.
Some districts start small and place
solar panels on a single school to keep
utility costs under control. Others have
undertaken large-scale projects, such as
the Toms River Regional School District.
The largest solar project in New Jersey,
Toms River has completed seven
schools and hopes to have each of their
20 school and administration buildings
operating under the sun’s power.
In either case, it is in a district’s best
interest to explore the untapped
resource. With the funding available to
offset the cost of the solar project along
with the energy cost savings going
forward, the opportunity to have cuttingedge technology and a “green” project
as a focal point in the school’s
curriculum is a win-win situation for the
school district.
FINANCING ALTERNATIVES
Solar projects can be financed by: (1)
negotiating a lease-purchase; (2)
entering into a power purchase
agreement with a solar provider; and (3)
long-term financing of a school
construction project through school
district bonds.
1. Lease-Purchase
When a district wants to fund a smaller
solar project, the lease-purchase option
may provide the best alternative. The
primary benefits of the lease-purchase
agreement are that the district can avoid
a down payment and still secure the
project without having to go out for voter
approval. While lease-purchase
agreements are generally limited to five
years, there is pending legislation that
advocates hope will extend the term of
the lease for up to 15 years. County
improvement authorities hosting pooled
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
Solar panels installed on the roof of the Hooper Avenue Elementary School in the
Toms River Regional School District provide an alternative energy source to power
the building.
loans are another way to minimize costs
of issuance for leasing.
2. Power Purchase Agreements
A power purchase agreement is a
negotiated contract with a solar
provider to have solar panels placed on
the roof of a school building, but the
provider retains ownership of the
equipment. In essence, the district is
leasing the space on the school roof to
the vendor in return for discounted
energy bills from the power generated.
Like a lease-purchase, power purchase
agreements are generally constrained
by a five-year term. Benefits from
rebates and revenues from the sale of
excess energy credits are typically
retained by the owner of the solar
equipment.
3. School District Bonds
Financing a larger project may warrant
issuing school district bonds. A benefit
of financing through bonds is the ability
to spread the debt service payments
out over the life of the project.
Typically solar panels have a useful life
of 25 to 30 years. Once plans for the
solar project are approved by the
district, the New Jersey Department of
Education will determine its eligible
costs. As a school construction project,
it may be approved for up to 40% state
funding. Since the days of receiving
upfront grants from the State/SCC may
have passed, the district can expect to
receive up to 40% in debt service aid
(or the corresponding percentage of
eligible costs approved). In order to
issue bonds, a school district needs
voter approval. Bonds are issued for
the total cost of the project. The
annual debt service aid pays the debt
service payments on the bonds, which
is roughly the same net effect as having
received it as a grant.
NJBPU REBATES
AND SOLAR RENEWAL
ENERGY CREDITS
(SRECS)
The availability of rebates and credits
are instrumental to school districts
embarking on a solar project. Many
school districts have taken advantage of
the rebates offered through the New
Jersey Board of Public Utilities (NJBPU)
Clean Energy Program. There is a
“cap” on the amount of rebates which
can range from $500,000 to $5 million
based on the size of the district.
Advocates for school districts are
lobbying for caps to be raised further so
that every school district in the state can
reap the financial, educational and
environmental benefits of a solar project
for its students.
Solar Renewal Energy Credits (SRECs)
are certificates issued by utility
companies when a solar project
produces excess energy that is sold back
to be used by other consumers, also
known as “reverse metering”. SRECs
received by the school districts depend
on how many kilowatts of energy are
generated beyond what the schools
need. SRECs can provide an additional
revenue source that will not only help to
pay off the project or fund additional
school solar projects, but will increase a
district’s revenue base.
SAMPLE FUNDING
CALCULATION
$10 million project (i.e., solar panels for 4-6
schools:)
Issuance of Bonds:
Debt Service Aid
Rebates from NJBPU
Initial Costs
$10,000,000
(4,000,000)
(500,000)
$5,500,000
SRECs sold annually
($500,000/yr x 5yrs)
(2,500,000)
Energy Savings
($200,000/yr x 5yrs)
(1,000,000)
$2,000,000
In just five years, a district could
potentially fund 80% of the project
outside of their budget.
Note: Assumptions regarding debt service
aid received, rebates available, average
price of SRECs and energy costs are
estimates and will vary with each district’s
project. Bonds must be gross-funded for
the total amount of the project.
OTHER INCENTIVES
In 2005, the Federal Energy Act authorized
a federal program for interest-free bonds
with the issuance of Clean Renewable
Energy Bonds (CREBs). The IRS has
approved a few New Jersey school district
projects under this program, though none
have issued CREBs to date. It is not
certain how long this program will be
available, but districts that are interested in
long-term financing should consider
applying if there is a 2008 program.
CREBs can potentially offer districts
another option for financing.
GREEN PROJECTS IN THE
SCHOOL CURRICULUM
hand the effects of the sun’s energy, the
technology monitoring the flow of energy
from the circuits and the fluctuations based
on weather conditions. In the Toms River
schools, kiosks are centrally located so that
students can read each day how many
kilowatts of energy the solar panels are
generating at any given time. The kiosks
also report on how many thousands of
homes could be powered by the solar
energy generated by their school. They
also measure the volume of pollutants
relative to carbon dioxide and sulfur that is
eliminated in the air by the reduction of
electric energy.
Environmentally-conscious projects put
school districts on the cutting-edge of
technology while demonstrating that the
school administration is doing all they can
both financially and environmentally for its
students. Investing in a project that will
ultimately pay for itself and incur substantial
savings in future energy bills exemplifies
that the district is conscientious and is
exploring every avenue to save taxpayer
dollars. It’s simply a matter of sitting down
and working out the numbers to see if a
solar project works for your district.
Integrating the solar project into a school’s
curriculum certainly boosts a “hands-on”
science department. Students witness first-
17
E-RATE:
Dan Riordan
President
On-Tech Consulting, Inc.
NOW IT’S THE LAW
The School District Accountability Law1
has affected your job in a number of
ways and it is now a good time to take
a look at Section 1b: “As a condition of
receiving state aid, a school district
shall… take steps to maximize the
district’s participation in the federal
Universal Service Program (E-Rate).”
The following is a brief introduction to
the E-Rate and a few ideas for
maximizing your E-Rate funding.
WHAT
IS THE
E-RATE?
The E-Rate is a federal funding
program which subsidizes
telecommunications and Internet
access costs for schools and public
libraries. This $2.25 billion funding
program is not competitive; all public
schools and libraries that correctly
complete the application process will
receive some funding.
The level of subsidy, or “discount” can
be anywhere from 20% to 90%, which
is determined by using the percentage
of students eligible for free or reduced
lunch. Almost half the districts in New
Jersey receive a 40% subsidy, making
it available for most
telecommunications and Internet
access services.
Districts with a high percentage of lowincome students can also receive
subsidies on the purchase cost of data
networking equipment, phone systems,
video distribution systems, and any
wiring used by those systems, as well
as the maintenance for those systems.
It is time to start working on the
application process for the 2008-2009
funding year, as it is a lengthy
process that must be completed
annually. The deadline for the first
step in the application process will be
determined in late December or early
January 2008.
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
HOW CAN I
MAXIMIZE MY DISTRICT’S
PARTICIPATION?
While the answer is different for every
district, the following are some general
suggestions.
Start Now
Although the “application window” for
the E-Rate program has probably not
opened by the publication date of this
article, the window refers to the second
form in the process (the Form 471).
The Form 470 is the first form of the
process and can be filed now to allow
more flexibility later. Do not hesitate
trying to decide which services to
purchase, there is no obligation to
purchase all the services on the form,
and services can be easily added by
filing another Form 470.
“The E-Rate is a federal
funding program
which subsidizes
telecommunications and
Internet access cost
for schools and public
libraries.”
year. Many districts use seven
services eligible for E-Rate funding:
1. Telephone service
(local, regional toll and long distance)
2. Cell phone service
3. Pager service
4. Digital lines
(T-1s, ISDN lines, PRI lines, DSL,
frame relay, ATM, etc.)
5. Internet access (ISP) charges
6. Web hosting charges
7. Email hosting charges
For more information on what is
eligible, read the most recent Eligible
Services List, available at
www.usac.org/sl/tools/eligible-services-list.aspx
Ask Around
To make sure that you receive
funding for all eligible services, ask
everyone who might have information
about the services your district will be
using in the coming year. Talk to your
director of technology who can
identify upcoming projects which
might impact telecommunications or
Internet access costs and check with
the accounts payable clerk who
maintains the list of vendors.
Get Help
Clarify your application before you file.
Answers can be found on the USAC
Web site (www.usac.org/sl). You can
also use the “Submit a Question” link
on the Web site or call 888-203-8100.
Know Your History
Start the process by looking at the
types of funding your district has had
previously. You can see funding
requests that have been made and if
the amount requested was too low or
too high. Quick access to your district’s
funding history can be obtained by
contacting me or stopping by our booth
at the NJSBA Workshop in Atlantic City.
File Online
All the Forms 470, 471 and 486 can be
filed online. Common errors are
caught by the online application system
as you complete the form, reducing the
chance of losing funding due to clerical
errors. Filing online starts the 28-day
waiting period immediately once the
“submit” button is clicked, while paper
filers have to wait for USAC to do data
entry before the 28 days start.
Learn What’s Eligible
The list of services eligible for E-Rate
funding is long and changes every
Don’t Rush the Forms
Do not try to complete and submit the
forms in one sitting. Complete the form,
“This $2.25 billion funding program
is not competitive; all public schools and
libraries that correctly complete the application
process will receive some funding.”
come back another day to
review and submit it. It is a
good idea to have your
technology and accounts
payable personnel review the
form for accuracy.
Consider All Bids
The Form 470 is intended to
encourage competitive bidding
on the services for which you
request funding. After posting
the Form 470, it is required that
you consider any bids that
come in within 28 days, and
document your selection
process. When selecting a bid
you are not required to accept
the lowest bidder, but price
must be weighted more heavily
than any other single evaluation
factor. Your existing service
can be treated as a bid; if no
bids are received note that in a
memo to the file.
Do the Item 21 Attachments
before the Form 471
The Form 471 contains the
“Item 21 Attachments;” detailed
descriptions of the services
requested and the costs.
Prepare these attachments
before you file lessening your
chances of making mistakes on
the Form 471.
Make your FRNs Big
Combine all bills from the same
vendor into one funding request,
making your funding more
flexible and bookkeeping simpler.
If your costs decline on one bill,
but increase on another, they will
offset each other.
Respond to Requests
from USAC
After you send in the
application, clarification on
some items may be needed.
You must respond to this
request for information or you
will be denied. Make sure that
the phone numbers and email
addresses submitted with the
application are functioning.
Ask for an extension if you
don’t have the information
readily available.
Beware of Repetitive
Requests
Repetitive requests for the same
information most likely means
that you are about to lose
funding. Reviewers frequently
request information again, just to
confirm the problem. If an
information request seems
repetitive, check your answers to
try to figure out why you’re going
to lose funding.
The most important suggestion
is to start now. With the lengthy
application process, decisions
need to be made now for any
services your district needs for
the 2008-2009 school year.
To learn more about the E-Rate
read the latest E-Rate Update at
www.On-Tech.com/erate/update.html.
You can also get more
information at the Web site of
the Universal Service
Administrative Company
(USAC), www.usac.org/sl
Dan Riordan has been obtaining ERate funding for districts since
1997. He began as an E-Rate
trainer, then served as a district
technology coordinator, and is now
a consultant. His firm, On-Tech
Consulting, currently manages the
E-Rate process for over 90 districts
in New Jersey.
1: P.L. 2007, c. 53, also called A5:
http://www.njleg.state.nj.us/2006/Bills/AL07/53_.HTM
19
picture perfec
Doug Diercksen, Turner Construction Co.
Jeff Feifer, Superintendent of Closter Schools
Joseph Di Cara, AIA, Di Cara | Rubino Architects
Terry-Ann Zander, Zander Consulting, LLC
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
ct
SEPTEMBER TRUSTEES MEETING
HIGHLIGHTS
21
HOW DID ARCHITECTURE
BECOME A COMMODITY?
Jeffrey D. Venezia
Design Ideas Group
Recently, after submitting a proposal
the profession such as; design
on references, visit projects and
for a project to a local college I
capability, experience, relationships
conduct interviews.
received a letter indicating that we
with clients, and the architect's passion
were not awarded the project and
for what we do.
One of my first opportunities as a
young architect was to accompany a
would be placed on the college's
My experience tells me that the most
potential client on a van ride to see
successful projects and satisfied clients
various projects that our firm had
By architectural standards, having
are the result of walking the fine line
completed. Twenty years later, they
practiced for over 25 years, I expect to
between both - meeting the client's
remain a client with whom we are
be less than half-way through my
expectations regarding schedule,
working on our eighth project.
career. Yet, in those 25+ years, I have
budget, change orders and initial costs,
seen a tremendous change in the
and infusing our passion, experience
• Pay to Play has brought the
perception and understanding by the
and design expertise into the project.
selection process for all professional
"commodities" list.
public in the value of the architect and
services under scrutiny. It is simply
what we bring to the table in the
easier to choose and defend a
services we provide for a client.
Webster's Dictionary defines
architecture as "the art, science or
profession of designing buildings." The
“Webster's Dictionary
defines architecture as
"the art, science or
profession of designing
buildings."”
selection made on the lowest fee or
the lowest hourly rate.
Government agencies recognize that
architects are responsible for the
definition itself gives us clues as to a
health and safety of the occupants of
conflict in the public's understanding of
our buildings and are, therefore,
what we do: is it science or art, or
How is it that with a history of shaping
licensed to perform the services we
some delicate balance of both?
the environment and enriching
provide. Architects have a
people's lives architecture has, in
professional and personal
Those who choose to understand
most of the public's eye, been
responsibility for the buildings they
architecture as a science will see it
reduced to a commodity?
design for 10 years following the
completion of a project. Few people
defined by the numbers; a budget,
schedule, the number of change orders
In many ways, there has been a
would pick a doctor based upon their
and other quantifiable factors and will
"perfect storm" of factors that have
low fee or hourly rate.
seek to choose an architect based
brought this about:
• The use of CM's (construction
upon low fee, hourly rate, or minimum
• We all have less time to do more.
managers) and PMF's (project
Selecting the "right" architect takes
management firms) has, on many
When viewed as art, the definition
time. Time to write a thorough and
projects, replaced our role in the
suggests more qualitative aspects of
well thought out RFP; time to check
construction of a project and separated
scope of services.
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
the architect from the owner
decisions we make and can
during this critical phase.
play into the public's
perception of architecture as
As the preparer of the
a commodity.
WE’D LIKE A WORD
WITH YOU
contract documents, only the
architect can fairly and
In preparing to embark on a
honestly interpret those
project with an architect, one
documents, regardless of
of the most important things
who holds our contract. Only
a client can do is contact the
the architect can make
architectural community to
changes to the work, interpret
help develop an RFP. An
the code, approve shop
RFP is a well-defined process
drawings and authorize
with clear direction, defined
substitutions. The architect's
criteria for selection, a
role cannot be minimized or
reasonable timeframe and a
reduced during this critical
balance between qualitative
phase of a project.
and quantitative factors that
Why not share
a few choice words with us?
KeyPost magazine is looking for some
quality articles for the next issue.
See your name in print! Get published!
Share your expertise with colleagues!
All of these are great reasons to want to
be a writer for KeyPost.
helps assure both a range of
• We as architects can be our
highly qualified respondents
own worse enemies. Our
and a competitive fee.
passion for our work drives
Feedback from the RFP
many of the business
about the final selection is
Need some ideas?
Don’t know where to start?
Contact KeyPost Editor,
Pam Carroll
Carroll Consulting Group
PO Box 23, Jamison, PA 18929
215-491-5077
[email protected]
Continued on page 29
TRUCK KING INTERNATIONAL BUS SALES
SERVING NEW JERSEY & NEW YORK
800.952.2021
OFFICE ADDRESS:
10 RICHARDSON LANE
EAST WINDSOR, NJ 08520
609.371.9700
650 COMMERCIAL AVENUE
CARLSTADT, NJ 07072
201.372.0600
1370 VIELE AVENUE
BRONX, NY 10474
718.328.1616
9505 AVENUE D
BROOKLYN, NY 11236
718.649.8400
AUTHORIZED IC DEALER
WWW.TRUCKKINGINTL.COM
23
403(B) REGULATIONS:
Linda Segal Blinn, J.D.
Vice President of Technical Services, ING
The IRS has released its final
regulations governing 403(b) tax
deferred annuity programs. With the
final guidance in place, what should
you take into consideration when
developing an action plan for your
school district?
The IRS guidance applies to all 403(b)
programs, even if your district’s 403(b)
program consists only of employee
salary reduction contributions, it is within
the scope of the IRS’ final guidance.
Your first action step is to help educate
yourself to the IRS’ way of thinking. Take
note –your involvement in the 403(b)
program will not simply be limited to
remitting employee contributions to
investment providers.
The IRS cautions that your 403(b)
program is in fact an employersponsored plan, with a list of roles and
responsibilities. As of January 1, 2009,
your administration will need to:
ESTABLISH A
WRITTEN PLAN
As the “plan sponsor,” your district will
need to develop “written rules of the
road” to operate the 403(b) program.
According to the IRS guidance, a
403(b) “plan” will need to capture the
following required elements:
• Employees eligible to participate in
the 403(b) program;
• Benefits available under the 403(b)
program;
• Applicable IRS limits on the
maximum amount of contributions
that can be made annually, the
amount of annual compensation
taken into account on which
contributions can be based, and the
maximum amount that can be taken
as a loan from the 403(b) program;
• The investment providers who can
receive ongoing contributions under
the 403(b) program;
• The requirements for an employee to
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
TIME TO TAKE ACTION
take a distribution from the 403(b)
plan and in what form those benefits
may be paid out; and
• The names of any parties to whom
your school will be delegating
responsibilities of any compliance
functions under the 403(b) plan and
the specific roles that they will be
taking as part of that delegation.
MAKE DECISIONS ABOUT
THE FEATURES YOU
WANT IN YOUR
403(B) PPROGRAM
Not every feature that your 403(b)
program offers is considered by the
IRS to be a required element. For
example, the ability to:
• take a loan or a hardship withdrawal;
• transfer/exchange among investment
providers either under your district’s
403(b) program or to transfer another
employer’s plan;
• accept rollovers into your district’s
403(b) program; or
• make an employer contribution on
behalf of participants in your district’s
403(b) program
All are considered to be optional
features of the 403(b) plan. According
to the IRS, if your district’s 403(b)
program will be offering any optional
features, they also must be included in
the written 403(b) plan.
result, you (or another party whom you
hire to provide such services) must
determine whether your participants
are entitled to a hardship withdrawal,
loan, or other distribution from the
403(b) program and, if so, approve that
transaction.
“Your first action step
is to help educate yourself
to the IRS’
way of thinking”
You will need to share information with
your service providers to accomplish
this. The IRS will require that 403(b)
sponsors share employee information
(for example, employment termination
date or hardship approvals) and
participant account information (such
as account values across all retirement
plans that your district offers and
whether there are any other loans
outstanding from those other plans) on
an ongoing basis. While the formal
written infrastructure for this must be in
place by January 1, 2009, the IRS has
warned that information sharing
protocols will apply to
transfers/exchanges among investment
providers after September 24, 2007, if
permitted under your 403(b) plan.
APPROVE
DISBURSEMENTS FROM
YOUR 403(B) PROGRAM
REMIND YOUR
EMPLOYEES OF THE
OPPORTUNITY TO SAVE
FOR RETIREMENT
THROUGH YOUR
403(B) PROGRAM
As the 403(b) plan sponsor, you will
need to make sure that amounts paid
out of the 403(b) program are
consistent with the IRS rules governing
when disbursement can be made. As a
The IRS has been vigilantly trying to
ensure that all employees who are
eligible to participate in their employer’s
403(b) program know that they have
the opportunity to do so. The final
403(b) regulations reflect this, requiring
that employers provide “meaningful
notice” at least annually to their eligible
employees, reminding them that they can
make either pre-tax or -- if permitted by
the plan -- Roth 403(b) contributions to
the 403(b) program, how to make or
change a deferral election, and how much
can be contributed annually to the 403(b)
program. If your 403(b) program allows
employees to decide whether and how
much they want to contribute to the plan,
then your school district will need to start
sending these annual notices.
Consider the IRS guidance a call to
action. If your 403(b) program will
continue to allow transfers among
providers after September 24, 2007, you
cannot afford to delay working on your
action plan. Start to:
• Gather plan-related documentation.
You have already captured many of your
403(b) program’s features in employee
handbooks, service agreements,
investment products and internal
procedures. Use this as the starting point
for developing your written plan.
• Determine if your school will continue
to allow transfers among investment
providers. If so, think about how your
403(b) program can balance the new
information sharing requirements with the
ability to transfer among investment
providers. Will you permit transfers
among any providers or only those which
also accept ongoing contributions? This
is the one area where you will need to
make a decision quickly.
“The IRS has been
vigilantly trying to ensure
that all employees who
are eligible to participate in
their employer’s 403(b)
program know that
they have the opportunity
to do so.”
reduced. You will want to explain how
these new IRS rules will impact the
operation of the 403(b) program.
• Seek help from those with 403(b)
expertise. You don’t have to create your
action plan alone. Seek providers that will
support you with the tools, knowledge,
and services you need to ensure your
403(b) plan runs smoothly and meets the
IRS regulations.
Author’s Note: This material was created to
provide accurate information on the subjects
covered. It is not intended to provide specific
legal, tax or other professional advice. The
services of an appropriate professional should
be sought regarding your individual situation.
These materials are not intended to be used to
avoid tax penalties, and were prepared to
support the promotion or marketing of the
matters addressed in this document. The
taxpayer should seek advice from an
independent tax advisor.
• Devise a communication strategy for
your employees. Don’t forget that most
of these changes impact your
employees. Just as your district’s role in
the 403(b) program is expanding, their
ability to make decisions unilaterally is
25
CONTINUED FROM PAGE
seniority, past practice and inherent
ideology of site based vs. district
staffing that was entrenched in the past.
11 - First Who, Then What
2006 and 2007. We are currently
working toward a new goal of obtaining
the ASBO Facilities Masters Award.
We remain pleased with the progress
With implementation of the new team
of the initiative and feel that multiple
building program, evaluations of
interviews by different interviewers
building head custodians, formerly
James H. Strimple,
RSBA
provide better insight into the optimum
completed
by building
principals
Education Liaison, Design Ideas Group Architecture + Planning, LLC
candidate for selection. Further we
alone,
were now additionally
have learned that simply not settling
completed by the BA with the
for the best candidate available from
assistance of the building & grounds
the pool at the time of the search and
supervisor. Implementation of the
simply re-advertising or deferring the
program has restored accountability
appointment to acquire a superior
and improved performance without
applicant better serves the long term
any grievances!
needs of the district and ensures the
quality of the team.
Additionally, monthly building and
grounds meetings are held at the
administrative building and include the
head custodians, maintenance
ONVEYANCE
specialist, supervisor of B&G, and the
This approach to effective team
business administrator. Concerns,
building can be easily assimilated into
projects and critical information are
any district regardless of size,
relayed to the Board, administration,
organizational structure or resources.
night supervisors and all custodial
However its success is predicated on
team members. Together the team
acceptance, conveyance and
achieved the first department goal in
reinforcement. Effective change will
2005, earning a coveted state-wide
never succeed without the support and
safety award which we repeated in
acceptance of those involved in the
C
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
change. “Buying in,” requires faith,
trust and commitment to the
organization by those entrusted with its
daily operation.
This initiative has clearly enhanced the
overall operation of the district as well
as the profession as evidenced by our
team’s appearance, attitude,
communications, cooperation,
creativity, dependability, enthusiasm,
initiative, productivity, work quality &
consistency, and teamwork; all critical
items for measuring success.
ADVERTISERS’ DIRECTORY
Action Data Services
page 9
Allen Associates
back cover
Brown & Brown
inside front cover
Chase
page 17
Design Ideas Group
page 19
EI Associates
page 11
Grinspec
page 15
Image Systems for Business
inside back cover
LDP Consulting Group
page 27
MBIA
page 7
McManimon & Scotland
page 15
Mid-Atlantic Dairy Association
page 25
RFP Solutions
page 28
Schwartz, Simon, Edelstein,
Celso & Kessler
page 21
The Thomas Group
page 29
Truck King
page 23
Xtel Communications
page 13
27
CONTINUED FROM PAGE
15 - Your Wishes Granted
Another key is to find the right grant for
we’ve received through grants, and our
support to complete the project. The new
your projects, rather than altering or
profile in the community is very high right
playground was hailed as a great
creating programs to fit the criteria of
now due to our petitioning legislators for
success in the local media, bringing
very specific or trendy grant topics. This
more money.”
positive attention to Mount Arlington
can lead you off course and end up
School District and Project Fit America®.
being a waste of time and money. For
example, if a funder will only give money
to diet-based wellness programs and
yours is focused on exercise or
curriculum, don’t rush to overhaul your
cafeteria just yet. Instead, talk to the
“Any school can get a
financial boost with grant
money by looking in the
right place and using the
right strategy.”
Many in education don’t realize that
there are long-term relationships to be
found, especially with foundations. If a
grantmaker admires your innovative
ideas, they are often interested in
funder about the merits of your
funding your school for several years or
approach, or look for another funding
hearing about another one of your
organization whose ideas are more in
initiatives. Once you have established a
line with your own.
All of these fundamentals came together
relationship in your local funding
recently for Superintendent Jane
community, you may be invited to events
While the primary reward for pursuing
Jameson, who was able to renovate
or referred to other funders.
grants is the grant award itself, don’t
Mount Arlington School’s playground
overlook the additional benefits of being
with help from Project Fit America®. The
So do your research and make your
a grant recipient. The opportunity can be
district had a need and carefully
case eloquently. Maybe your wish will
used to approach the media and
researched the right grantmaker. Their
be granted.
heighten your school’s profile in the
partnership with a local hospital and the
community. O’Connell notes, “I’ve
PTA, coupled with support from the
communicated the amount of funding
town, enabled them to garner enough
KEY POST VOLUME XXIIII, NO.1 - OCTOBER 2007
CONTINUED FROM PAGE
23 - Architecture Becomes a Commodity
invaluable to the firms that were
not chosen.
When viewed as a percentage of
the overall costs, as well as the
cost of the long-term bonding or
financing, a couple of percentage
points on an A/E contract or dollars
on an hourly rate schedule are
inconsequential when compared to
the return on investment that a
well-qualified, experienced and
knowledgeable architect can
exceeds their expectations and
“My experience tells me
that most successful projects
and satisfied clients
are the results of walking
the fine line between
both - meeting the client’s
expectations regarding
schedule, budget,
change orders and initial
costs; and infusing passion,
experience and design
expertise into the project.”
the lowest fee and what it really
takes to do the job…and do it right!
Partnering with the right architect
is one of the best investments that
can be made.
architectural services are viewed
as a professional service and not a
commodity.
Jeffrey D. Venezia, AIA is a
graduate of the University of
Virginia School of Architecture and
has been practicing architecture
since 1981. He is presently
president of Design Ideas Group
provides leadership in developing
productivity, operating costs and
than cover any difference between
outcome that is only possible when
Architecture + Planning, LLC and
provide to a client. Savings in
long-term maintenance will more
enhances their mission. An
Clients who are willing to take the
time to make the right decision in
selecting an architect will be
rewarded by a well designed and
distinctive project produced on
and maintaining "legacy" clients for
the firm as well as directing the
marketing efforts and higher
education practice area.
www.designideasgroup.com
time and within budget. A project
that meets their program needs,
29
key post
end notes
A BREAKFAST
A
DAY KEEPS BOREDOM
AT
BAY
Three New Jersey schools were honored recently for their innovative school breakfast programs
with an Expanding Breakfast Award and grant. The award program, funded by Mid-Atlantic Dairy
Association and local dairy farmers, was launched this year to call attention to the importance of
alternative school breakfast options.
First and second place awards went to Maud Abrams School and Sandman Consolidated in
Lower Township School District. The Cape May schools received a $5,000 and a $2,000 grant,
respectively. More than 55 percent of students participate in the breakfast program, which
allows students to eat a healthy breakfast in the classroom consisting of lowfat milk, whole grain
cereal, 100 percent unsweetened fruit juice, a bread basket and bagel sticks.
George L. Hess Educational Complex in Mays Landing earned third place for its homeroom
breakfast program. More than 35 percent of students participate in the program, which offers
lowfat milk, cereal, 100 percent unsweetened fruit juice and a variety of crackers. School
breakfast participation increased 5 percent in the past year.
Schools across New Jersey that offer a non-traditional breakfast program were eligible to enter
the contest. The applications were reviewed by a panel of judges from Mid-Atlantic Dairy
Association and the National Dairy Council. For more information about the Expanding
Breakfast program for schools, visit www.dairyspot.com