Board president clears claim of costly innuendo
Kight: Broker's perk not shouldered by taxpayers
BY DANIELLE MEDINA
Correspondent

BRICK - Responding to public criticism, Board of Education President Sharon Kight told the audience at a recent board meeting that the school district is not footing the bill for its health insurance broker's 50 percent commission increase.

"The additional 1 percent commission comes out of Horizon's [Blue Cross/Blue Shield] profits, not from taxpayer money or premium increases," Kight said on July 20. "We don't have to take an additional $54,000 out of our budget to pay Mr. [Scott] Davenport."

Davenport, of Commerce Insurance Services, was rehired by the board in June for the 2006-07 school year at a rate of $8,000 per month, not to exceed $96,000, for health insurance, plus an additional 1 percent of the dental and prescription premiums. The firm's total compensation package for the upcoming year will be $150,000.

Last year, Commerce was paid a flat fee of $72,000, or $8,000 per month, for the nine months it worked for the district.

At the time of Commerce's June rehire, former board member John Bendokas blasted the board for agreeing to a 50 percent commission increase after the district's budget failed in April.

"I just don't think it's the right thing to do," Bendokas said in June.

But last month, Kight praised Davenport for his work on the district's behalf.

"Scott Davenport did a fantastic job negotiating our renewal rate for this year," Kight said. "We haven't had a renewal rate like that in over a decade."

The renewal rate for the upcoming school year is 5.5 percent, which translates to a savings of $1.4 million to the district, according to district figures.

Davenport negotiated the 1 percent additional commission with Horizon directly, Kight said.

She said it is not uncommon for brokers to get commissions from the health care provider.

"Previous brokers also got commissions," Kight said.

But even though other brokers received commissions, Kight said, the exact terms of their compensation wasn't always clear.

"We wanted to be up-front in the resolution," Kight said, explaining why the board included the firm's total compensation in the board's approved resolution.