Transition possible for Highco, Inc
By
Brandy Chandler-brandychandler@gmail.com
The Highland County Board of Developmental Disabilities has begun the process of conducting a feasibility study that could lead to independent operations for Highco, Inc.
Chuck Biggert, the superintendent of the Highland County Board of DD said that when he started working with the board more than three years ago he started investigating the possibility of an independent operation. “I thought it would take 10 to 15 years in a slow transition,” Biggert said.
But due to the potential loss in state funds and the current state of the economy, Biggert said the cost savings potential for taxpayers prompted an investigation into transitioning sooner.
The study and potential changes, according to Biggert, is being called the Highco Inc. Independence Project, although a lot of people are referring to it as the “privatization” of Highco.
The feasibility study is being conducted by Ken Albert, the president of Nonprofit Financial Services. The cost of the study is a maximum $5,000, and will come out of board of DD funds. Biggert said the study might cost less when it is completed.
“Everyone calls it a privatization,” Bigger said. “The nonprofit (Highco) is already private. The county board provides the staff to run the nonprofit, and they should be separate. So what I’m trying to do is more cost effective. We’re trying to make them independent, but we’ll always be here to assist them.”
Biggert said the students and patrons of Hills and Dales Training Center and school, and the Highco programming, will not see a change in services. Rather, the shift is more administrative in that it involves changing who actually employs people who work for the boards.
Highco, Inc. has its own nonprofit board,” Biggert said, that is separate from the operations of Hills and Dales and the board of DD, but that people who work for the board of DD are doing work for Highco.
“Most counties are operating the way we operate right now. The issue that we are having now is that many of the staff are board of DD employees working with the nonprofit (Highco) board,” Biggert said.
“It has always been an issue across the state for many years. Out of 44 counties (that were questioned) 19 had done some type of transition of those two boards. We’re looking at it now to see if it would be right for us. Highco, Inc. is a nonprofit, and it’s a private entity, so it’s not publicly funded. They have a mission to fulfill, which is to employ people with developmental disabilities. The county board covers all ages. Highco is an adult services provider, but they can also serve students if they go into a transition from school (at Hills and Dales) to work. They also have providers in a residential field to help when they go home.”
Linda Allen, president of the Highland County Board of DD, said that the ultimate goal of the board is what is best for the students and clients in their programs.
“Right now, we’re in the process of evaluating the possibility,” Allen said. “With the constant state budget cuts and rising costs to operate Hills and Dales, we’re looking at any avenue to continue to make this a very good experience for our clients and offer all the opportunities we can. But we will only do it if it is beneficial for both groups, and not just from a financial standpoint.”
Allen said that this is not about the board of DD not wanting to work with Highco, rather it’s about exploring possibilities that will be there to benefit both groups, and the people they serve, as well as the taxpayers who fund the programs.
“In no way, shape or form are we trying to distance ourselves from Highco,” Allen said. “We just have to evaluate the possibilities. Other groups are doing this, and it was brought to our attention, and we’re kind of checking it out. We’re not even close to anything. It’s so preliminary. That’s why we had Ken Albert come in to do an assessment.”
A meeting was held March 25 at Hills and Dales to explain the feasibility study to parents and employees for the board and for Highco, and they took questions. Biggert and Allen said that there were many concerns, most of which centered around people wanting to make sure that the clients would not be negatively impacted and the change would not result in job loss.
“It’s going to take a lot of work from Highco and from the board,” Allen said. “I feel positive about it, and from what we’ve heard, there are some positive things that could come from Highco being independent, and what is good for them is good for us. Our main concern is offering the same or better services to the clients that we serve at the Highland County Board of DD and Highco. But, we also are supported by the community, and we want to make sure that we are doing everything we can do to spend the money – the taxpayers’ money – wisely.”
The Highland County Press was unable to reach Highco Inc. Board members for comment.
“It’s very important that people understand we’re in the very initial stages,” Biggert said. “If the feasibility study doesn’t show a win/win for both agencies (it won’t immediately continue). It’s probably something we will have to do in the future but there are a lot of questions now.”
Biggert said the relationship of the board of DD and Highco is similar to that of the Highland County Board of Commissioners and the Highland County Community Action Organization. Community Actions can go out for grants and provide services on behalf of the county, but they are a nonprofit, and do not operate under the umbrella of the county.
“Traditionally, it has always been board of DD staff that provides the services to the nonprofit,” Biggert said.
“We have workers doing the work the nonprofit employees should be doing. That is common across the state. We’re talking about 15 different staff that could be transitioned to become Highco employees. They would not be county board employees, but Highco employees. Everything would be the same.”
That transition, he said, is already slowly happening, in that when the board loses employees through attrition, when rehires are made, they are hired as Highco employees. It’s the same job, same work, he said, just a different technical employer.
While there are many reasons for the transition, according to Biggert, access to more federal dollars is a main reason.
“The board can get access to 60 percent when we’re billing Medicaid,” Biggert said. “We get reimbursed 60 percent. That is the cost for a public entity. The key is, if we have Highco become that entity, as a nonprofit, they can access 100 percent of Medicaid funds.”
Biggert said that would result in approximately $700,000 more per year. However, there are also the additional costs of having more employees.
“We’re looking for long-term sustainability for the county board, and we’re trying to maximize all resources so we don’t have to go back to the taxpayers.”
The transition, if it happens sooner rather than later, he said, could result in enough Medicaid reimbursements so that the board does not have to ask for an increase in levy funds.
The board of DD has a continuous levy, he said, which means that the funds generated are in the same amount as the year in which it was originally passed, which in this case is 2003 and 2009.
“If the cost of living goes up, we get no more money,” Biggert said. “It’s the same as the year it was approved. We’re going to get cut from the state. We have a total of 4.5 mills, which is a combination of 3.35 mills passed in 2009 and one that is for 1 mill passed in 2003. The 2003 funding is producing at maybe only 80 percent of the mills. Costs are going up, and the funds we get will be continuing, but with inflation, you fall behind. We already know we’re going to get hit with subsidy cuts. With the decrease in
our revenue at the county board, we know it’s possible we may have to go back to the voters in 2014 and 2015. What we’re hoping is that by this conversion, we may be able to extend going back to the voters anywhere from 2018 or 2020.”
The transition would mostly affect new employees who are hired in, according to Biggert. He said that it would allow Highco to have the freedom to change salaries for each position and what benefits they would offer to new employees, and they would also be able to make cuts if they were needed.
“They would also have the ability to decrease expenses,” Biggert said. “We’re trying to not lay people off if a levy doesn’t pass. There’s a good chance people aren’t going to be able to afford a future levy.”
One concern Biggert said he is hearing is from parents is that they are afraid if the transition is not successful, that the services will cease.
“They’re worried that if Highco can’t do it, it’s going to close down,” Biggert said. “That’s not anything that can happen, because the county board is supporting them as they go through. We would not even go into anything if we thought that could happen. I feel very positive going forward, and depending on what the study says, we won’t have any concerns.”
If the boards decide to proceed, the transition would happen in stages, and it could happen by the end of the year, Bigger said. There will be much more discussion, and the boards will be meeting to examine new information and the feasibility study as it develops.
“It’s going to happen sooner or later,” Biggert said. “With the issues in the economy, with budget cuts coming down, it’s something to look at now – as opposed to 10 to 15 years from now. That was my recommendation to the board. So out of respect for me, they’re looking at it, and for the taxpayers, so that we spend out dollars wisely an ensure long-term sustainability for our county to continue these good services.”[[In-content Ad]]
Chuck Biggert, the superintendent of the Highland County Board of DD said that when he started working with the board more than three years ago he started investigating the possibility of an independent operation. “I thought it would take 10 to 15 years in a slow transition,” Biggert said.
But due to the potential loss in state funds and the current state of the economy, Biggert said the cost savings potential for taxpayers prompted an investigation into transitioning sooner.
The study and potential changes, according to Biggert, is being called the Highco Inc. Independence Project, although a lot of people are referring to it as the “privatization” of Highco.
The feasibility study is being conducted by Ken Albert, the president of Nonprofit Financial Services. The cost of the study is a maximum $5,000, and will come out of board of DD funds. Biggert said the study might cost less when it is completed.
“Everyone calls it a privatization,” Bigger said. “The nonprofit (Highco) is already private. The county board provides the staff to run the nonprofit, and they should be separate. So what I’m trying to do is more cost effective. We’re trying to make them independent, but we’ll always be here to assist them.”
Biggert said the students and patrons of Hills and Dales Training Center and school, and the Highco programming, will not see a change in services. Rather, the shift is more administrative in that it involves changing who actually employs people who work for the boards.
Highco, Inc. has its own nonprofit board,” Biggert said, that is separate from the operations of Hills and Dales and the board of DD, but that people who work for the board of DD are doing work for Highco.
“Most counties are operating the way we operate right now. The issue that we are having now is that many of the staff are board of DD employees working with the nonprofit (Highco) board,” Biggert said.
“It has always been an issue across the state for many years. Out of 44 counties (that were questioned) 19 had done some type of transition of those two boards. We’re looking at it now to see if it would be right for us. Highco, Inc. is a nonprofit, and it’s a private entity, so it’s not publicly funded. They have a mission to fulfill, which is to employ people with developmental disabilities. The county board covers all ages. Highco is an adult services provider, but they can also serve students if they go into a transition from school (at Hills and Dales) to work. They also have providers in a residential field to help when they go home.”
Linda Allen, president of the Highland County Board of DD, said that the ultimate goal of the board is what is best for the students and clients in their programs.
“Right now, we’re in the process of evaluating the possibility,” Allen said. “With the constant state budget cuts and rising costs to operate Hills and Dales, we’re looking at any avenue to continue to make this a very good experience for our clients and offer all the opportunities we can. But we will only do it if it is beneficial for both groups, and not just from a financial standpoint.”
Allen said that this is not about the board of DD not wanting to work with Highco, rather it’s about exploring possibilities that will be there to benefit both groups, and the people they serve, as well as the taxpayers who fund the programs.
“In no way, shape or form are we trying to distance ourselves from Highco,” Allen said. “We just have to evaluate the possibilities. Other groups are doing this, and it was brought to our attention, and we’re kind of checking it out. We’re not even close to anything. It’s so preliminary. That’s why we had Ken Albert come in to do an assessment.”
A meeting was held March 25 at Hills and Dales to explain the feasibility study to parents and employees for the board and for Highco, and they took questions. Biggert and Allen said that there were many concerns, most of which centered around people wanting to make sure that the clients would not be negatively impacted and the change would not result in job loss.
“It’s going to take a lot of work from Highco and from the board,” Allen said. “I feel positive about it, and from what we’ve heard, there are some positive things that could come from Highco being independent, and what is good for them is good for us. Our main concern is offering the same or better services to the clients that we serve at the Highland County Board of DD and Highco. But, we also are supported by the community, and we want to make sure that we are doing everything we can do to spend the money – the taxpayers’ money – wisely.”
The Highland County Press was unable to reach Highco Inc. Board members for comment.
“It’s very important that people understand we’re in the very initial stages,” Biggert said. “If the feasibility study doesn’t show a win/win for both agencies (it won’t immediately continue). It’s probably something we will have to do in the future but there are a lot of questions now.”
Biggert said the relationship of the board of DD and Highco is similar to that of the Highland County Board of Commissioners and the Highland County Community Action Organization. Community Actions can go out for grants and provide services on behalf of the county, but they are a nonprofit, and do not operate under the umbrella of the county.
“Traditionally, it has always been board of DD staff that provides the services to the nonprofit,” Biggert said.
“We have workers doing the work the nonprofit employees should be doing. That is common across the state. We’re talking about 15 different staff that could be transitioned to become Highco employees. They would not be county board employees, but Highco employees. Everything would be the same.”
That transition, he said, is already slowly happening, in that when the board loses employees through attrition, when rehires are made, they are hired as Highco employees. It’s the same job, same work, he said, just a different technical employer.
While there are many reasons for the transition, according to Biggert, access to more federal dollars is a main reason.
“The board can get access to 60 percent when we’re billing Medicaid,” Biggert said. “We get reimbursed 60 percent. That is the cost for a public entity. The key is, if we have Highco become that entity, as a nonprofit, they can access 100 percent of Medicaid funds.”
Biggert said that would result in approximately $700,000 more per year. However, there are also the additional costs of having more employees.
“We’re looking for long-term sustainability for the county board, and we’re trying to maximize all resources so we don’t have to go back to the taxpayers.”
The transition, if it happens sooner rather than later, he said, could result in enough Medicaid reimbursements so that the board does not have to ask for an increase in levy funds.
The board of DD has a continuous levy, he said, which means that the funds generated are in the same amount as the year in which it was originally passed, which in this case is 2003 and 2009.
“If the cost of living goes up, we get no more money,” Biggert said. “It’s the same as the year it was approved. We’re going to get cut from the state. We have a total of 4.5 mills, which is a combination of 3.35 mills passed in 2009 and one that is for 1 mill passed in 2003. The 2003 funding is producing at maybe only 80 percent of the mills. Costs are going up, and the funds we get will be continuing, but with inflation, you fall behind. We already know we’re going to get hit with subsidy cuts. With the decrease in
our revenue at the county board, we know it’s possible we may have to go back to the voters in 2014 and 2015. What we’re hoping is that by this conversion, we may be able to extend going back to the voters anywhere from 2018 or 2020.”
The transition would mostly affect new employees who are hired in, according to Biggert. He said that it would allow Highco to have the freedom to change salaries for each position and what benefits they would offer to new employees, and they would also be able to make cuts if they were needed.
“They would also have the ability to decrease expenses,” Biggert said. “We’re trying to not lay people off if a levy doesn’t pass. There’s a good chance people aren’t going to be able to afford a future levy.”
One concern Biggert said he is hearing is from parents is that they are afraid if the transition is not successful, that the services will cease.
“They’re worried that if Highco can’t do it, it’s going to close down,” Biggert said. “That’s not anything that can happen, because the county board is supporting them as they go through. We would not even go into anything if we thought that could happen. I feel very positive going forward, and depending on what the study says, we won’t have any concerns.”
If the boards decide to proceed, the transition would happen in stages, and it could happen by the end of the year, Bigger said. There will be much more discussion, and the boards will be meeting to examine new information and the feasibility study as it develops.
“It’s going to happen sooner or later,” Biggert said. “With the issues in the economy, with budget cuts coming down, it’s something to look at now – as opposed to 10 to 15 years from now. That was my recommendation to the board. So out of respect for me, they’re looking at it, and for the taxpayers, so that we spend out dollars wisely an ensure long-term sustainability for our county to continue these good services.”[[In-content Ad]]