Human Resources Action Item

DATE:	Tuesday, June 11, 2019
TO:	School Board Members
FROM:	Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS
Approve the Agreement for Technical Services with DeGroot Management Services, Inc. (DMS) to Perform Unemployment Cost Control Services (Human Resources)
EXECUTIVE SUMMARY
Hillsborough County Public Schools (HCPS) is self insured for Unemployment Compensation Insurance (UCI), a state-mandated program that requires employers to pay either insurance premiums or the actual cost of unemployment claims to the state. In an effort to mitigate the UCI costs, HCPS contracts with DMS services which include verification of the accuracy of unemployment benefit charges assessed against HCPS, representation of HCPS at unemployment hearings, training of staff as needed, and production of management reports. As a result of our working relationship with DeGroot Management Services, HCPS has continued to see a significant decrease in what we pay to the State of Florida (annually) for our Unemployment Compensation. This agreement is for the period of July 1, 2019, to June 30, 2021. Fiscal Year                  Claims Potential        Total Paid                     HCPS Savings 2014/2015                   $1,213,738.99           $570,676.98                 $   643,062.01 2015/2016                   $   642,890.59           $210,285.00                 $   432,605.59 2016/2017                   $   784,440.00           $252,411.15                 $   532,028.85 2017/2018                   $1,178,222.90           $151,456.04                 $1,026,766.86 2018/5-2019                $   277,234.29           $  89,224.65                 $   188,009.64 Total Savings                                                                                      $2,822,472.95
STRATEGIC OBJECTIVES
• Continuously improve processes and systems • Establish a strong foundation of financial stewardship • Demonstrate "best practices" in all aspects of safety: student, employee, visitor, facility, transportation, and health
FINANCIAL IMPACT (Budgeted:  Yes)
Funds in the amount of $17,500 per year for two years will be available in the 2019/2020 and 2020/2021 divisional budget, effective July 1, 2019. For tracking purposes, the project number specific to this agenda item is 6964.
EVALUATION
Quarterly reviews are conducted by the Department of Employee Benefits and Insurance to evaluate Claims Potential and HCPS Savings reports.
SUBMITTED BY:  Tracy Schatzberg, Ed.D., SHRM-CP

Marie E. Whelan, Ed.D.		Gretchen Saunders
Chief Human Resources Officer (813) 840-7328		Chief Business Officer (813) 272-4270
		B 6.21
Hillsborough County Public Schools (Florida) * Mtg.#20190611_925 (Board Meeting) * Section B Item# 6.21