It is rarer than ever today to see an organization that is cutting its own budget instead of charging its members more and more each year. It is refreshing to see that an Arizona organization that serves teachers, school districts, cities and towns and other entities can tighten their budget. For three years in a row now they have managed to keep costs 10% lower than in 2009. Kudos to VSMG!
reposted from VSMG Press Release.
PRESS RELEASE FOR IMMEDIATE RELEASE
VALLEY SCHOOLS MANAGEMENT GROUP BOARD UNANIMOUSLY APPROVES A ZERO INCREASE BUDGET AFTER CUTTING 10% IN TWO PRIOR YEARS
August 27, 2012
Phoenix, Arizona – The Valley Schools Management Group (VSMG) Board, voted unanimously to approve a no increase budget. After having already cut ten percent of their total operating budget in the prior two years, this will be the third consecutive year with costs significantly lower than in 2009.
“It is an ongoing challenge to keep reducing costs and to maintain a high level of service year after year,” said VSMG Board Member Tom Elliott. “However, we provide services to public entities that have already been hit with dramatic cuts and we believe it is our responsibility to bear the burden as much or more than our members.”
“We look at every budget item in great detail, and if it is not completely essential, we eliminate it”, stated Tom Boone, Chairman and CEO for VSMG. “This year we have saved significant costs by changing from paper mailers to electronic postings and working with our insurance providers to keep their costs low through effective partnerships and negotiations.”
Recent studies by Aon/Hewitt, the largest employee benefits consultant in the world, confirm that VSMG has been saving dramatically for its members through cooperative purchasing and low administrative costs.
“It is getting tougher each year to keep our costs at zero increase and below, especially since most of our administrative costs are external.” Ted Carpenter, another VSMG Board Member added, “We have to purchase stop loss insurance, claims processing, disease management, COBRA administration and many other items from vendors, and we have to keep their negotiated costs flat as well. With double digit increases in health care each of the last three years, that has been difficult, but we have managed through hard work.”