Protect Your District from Unintended Consequences

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By: 
Jeff P. Crouse, CFO, MSBO President, Chief Financial Officer, Charlevoix-Emmet ISD

In these highly charged political times it seems we can not even turn around from grabbing one legislative alert off the printer before another one hits our email. Although it definitely will vary in every district, frequently I’ll be asked, “what is my role or responsibility in watching or tracking a certain piece of legislation?” My answer is always, “what can your role be in your district?”

Much like the MSBO organization, we are frequently expected to be the non-partisan, fact clarifying voice when an idea or piece of legislation is introduced. Certainly this fits with our many roles on the operational side of the district. We are the ones best suited to determine the various impacts, both intended and unintended, on the district financially or from an operational standpoint.

I believe one of the primary responsibilities of a business official when a bill is being discussed or introduced, is to investigate the impact it will have on our individual districts or even our region from an ISD perspective. Frequently districts are painted with the same brush when it comes to financial impact of legislation. The uniqueness of the state’s funding formula, size of districts, student demographics, and even geography isn’t always considered when the legislature looks at the enormity of cuts that we have seen in recent times. The unintended consequences of items like eliminating personal property tax for hold harmless or Intermediate School Districts is many times left for sorting out after the fact.

While recent legislation has given districts mandated ways to control costs, the implementation of these laws does not appear to be a planned part of the bill. This is another reason why MSBO members need to stay informed on pending legislation. You may need to make preemptive changes to a payroll or health insurance system to track insurance caps or co-pays. You may need to make changes to your human resource system to monitor teacher evaluations, observations, and tenure. Your district may need to create a completely new system to measure and distribute merit pay for those who have earned it. A district’s budget may need to be adjusted to handle a legal review of their bargaining unit contract, which now likely contains a half dozen articles that are prohibited subjects of bargaining. Any of these items could lead to immediate problems for an unprepared business office.

While I know we are bombarded daily with emails, faxes, and even tweets, the legislative updates are ones that need our time and attention for our own benefit and that of our districts. With promised pension reforms and changes to charter school legislation already introduced, the legislative alerts will continue to be fast and furious. Meet with your Superintendent and understand your role in your district. Engage yourself in the process despite the possibility for frustration. When asked by MSBO or the education lobby for information to help get the facts to the media and the legislature, make every effort to do your part. Your Superintendent and you are likely THE voice to represent your students and community!