Tag Archive for Virginia

Richmond receives budget suggestions from firm

Local officials in Richmond, Virginia, will be considering the recommendations of a consulting group as they look for ways to cut expenses within the city's school budget.

The firm indicated that a combination of job cuts and changes to health and dental insurance benefit offerings for current and retired employees could yield savings as high as $23 million, CBS affiliate WTVR reports. The job cuts would include a combination of teachers, teacher aides, administrative personnel, security staff and custodians, eliminating a total of 92 positions compared to the 300 that an earlier budget draft called for.

About $6 million of the savings the firm proposes would come from transportation costs to be lowered by hiring a private company to take charge of maintenance facilities as well as transportation itself. Officials have been seeking a way to close a budget gap of about $24 million, meaning the firm's proposed cuts come up somewhat short, although they did find some ways for the school district to increase revenues as well.

One suggestion was to establish long-term leases with communications companies who would build cell towers on certain school properties. Another involved optimizing Medicaid reimbursement billing.

Report: Implementation price high for Virginia retirement plan changes

A recently-passed law that will change the Virginia Retirement System to mandate new employees participate in a 401k-style retirement plan may cost the state as much as $25 million, according to a report.

Governor Bob McDonnell recently signed into law the bill, which will require all employees hired after Jan 1, 2014 to enter a hybrid pension plan that will combine aspects of the current system with 401k features. Employees hired before the start date can opt in if they wish. Supporters say the result is meant to improve the long-term solvency of the Virginia Retirement System, the Washington Examiner reports.

A new study by the nonpartisan Commonwealth Institute for Fiscal Analysis, however, suggests that the price tag for implementation may be higher than $25 million as the state develops needed information technology resources and other systems, based on examinations of similar plans in other states.

The organization notes that the need to implement these changes, which also include reductions in the benefits some current and all future employees will receive, results from underfunding on the part of the state in past years. Cost projections were fairly broad, with the report noting that they may be at the low end, around $5 million, because the plan will not apply to all current employees. Analysts did say that the administration costs will be higher, however, which could be a larger factor over sufficient time.

Virginia district officials pass stable budget

The Hampton School Board in Virginia has passed a budget that includes a request for the city council to give up $2.3 million in order to avoid the need for undesirable spending cuts to transportation and staff.

Among the changes that school district officials are seeking to avoid are higher employee contribution levels toward group life insurance benefits and a reduction in the instructional supplies budget, according to the Daily Press. The request is being made to offset decreased residential tax revenue and would support a budget essentially equal to last year's.

Among the changes being made are a planned 1 percent raise for all employees and a 1 percent increase in contributions to the Virginia Retirement System, the news source notes. Long-term plans call for similar 1 percent raises each year until contributions are up to 5 percent.

Funding for contingencies, substitute teachers and tuition reimbursements for provisional teachers is being cut as well to free up resources for the higher payroll taxes that will result from the planned salary increase.

 
Contact NIS
NIS Employee Login
Careers Site Map Privacy Policy  
 
Contact NIS
NIS Employees
Careers
Site Map
Privacy Policy
 

National Insurance Services, Offices Nationwide: 800.627.3660

Copyright ©2011 National Insurance Services of Wisconsin, Inc. All Rights Reserved