Annual Report 2015-2016

Education . Healthcare. Technology . Economic Development

TABLE OF CONTENTS

INTRODUCTION EXECUTIVE SUMMARY ORGANIZATIONAL STRUCTURE Governance Membership PROGRAMS & SERVICES Health Insurance Pools Environmental Health & Safety Regional Communication Cooperative Purchasing Academic Enrichment Programs Knowledge Bowl Spelling Bee Distance Learning Initiatives School Improvement Reading Corps Regional Center of Excellence Technology Services FISCAL

Introduction

Northeast Service Cooperative 5525 Emerald Avenue

Mountain Iron, MN 55768 218-741-0750

Fax: 218-741-1719 www.nesc.k12.mn.us

Collaborating to Meet your Changing Needs Servicing school districts, cities, counties and other

governmental agencies throughout northeast Minnesota

Executive Summary

INTRODUCTION The Northeast Service Cooperative is a nonprofit public corporation established by an act of the legislature of the State of Minnesota (Session Law, 1976, Chapter 8), Revised 1995, MS 123.582 and 2007, MS 123A.21, with an update in 2014 and 2015. The Northeast Service Cooperative is governed by a seven voting member Board of Directors of which the majority must be current members of school boards elected at large from the Northeast Service Cooperative area. The remaining Board members may be representatives at large appointed by the Board of Directors or elected as representatives by other participating agencies, i.e. cities, counties or other governmental agencies. Two superintendents currently serve the Board of Directors in an ex-officio (advisory) capacity. The mission of the Northeast Service Cooperative, as declared in statute, shall be to perform planning on a regional basis and to assist in meeting specific needs of clients in participating governmental units which could be better provided by a Service Cooperative than by the members themselves. This mission encourages cooperative efforts to make programs and services available to Northeastern Minnesota, which will be efficiently and economically provided,by a consortium effort. Further, the mission of the Northeast Service Cooperative shall be consistent with the enabling legislation providing for its creation. To ensure school districts and community involvement in the accomplishment of the Northeast Service Cooperative's general goals, major advisory groups have been established. The most prominent of these groups is the Superintendents' Advisory Committee, made up of superintendents from throughout the Northeast Service Cooperative region. These superintendents provide guidance and advice to the director and to the Northeast Service Cooperative Board of Directors. Committees are used in planning specific functions. There are two standing committees and each consists of Board members and the director. The committees and their functions are as follows:

1. Personnel Committee: Personnel issues, hiring, placement of staff, salary negotiations, job descriptions, policy issues, etc. 2. Business Committee: Overall and program budgets, fiscal management, services offered, programming, etc.

In accordance with the Legislation, this Annual Report is prepared for and available to the Members.  

EXECUTIVE SUMMARY As we reflect on another year of regional service, we are thankful for our work with our members and look forward to serving over the year ahead. Despite significant challenges in health care, technology, and education, we continue to deliver services to members that are built upon the strength of our board, advisory committees, and staff as well as assets in strategic reserves and our regional fiber plant in order to help meet the needs of our members. Let’s review our progress this past year within three primary areas of service delivery: health, technology, and education. Health Health Care Insurance Pools Summary: Although our retention rates remain high (>90%), after years of watching our reserves grow, we recently began accessing a portion of these reserves to help address several issues: health care cost trend, high claims utilization in the pools, and regulatory compliance (ACA, HITA). Despite these new demands on our reserves, we remain focused on the big picture – statewide coalition planning, the Blue Cross partnership, the strength of the pools, and the regional advisory process – even as market fluctuations and challenges continue. Key Indicators: The NESC ISD insurance pool remains stable with no groups lost during the initial HITA process and one group, Hibbing Public Schools (200 contracts), gained. This past year, post HITA, only one group, St. Louis County schools (a “split” group) left for Medica. Meanwhile, the CCOGA insurance pool remains relatively stable as well with only one group, Aitkin County, leaving the pool to explore a self-insured arrangement. Finally, the still relatively new arrangement Arrowhead ProCare continues to be a productive JPA for both NESC and ProCare with 830 contracts served. Strengths: MSC Coalition/Collaborative, Carrier (Blue Cross), JPA/Advisory Process, Board/Staff, Reserves, the “Minimum Premium” Arrangement, Resiliency. Challenges: Affordability, Local Resources, Statutory/Regulatory Environment Health & Safety Services Narrative Summary: We completed our first year of service under a new regional partnership with the Institute for Environmental Assessment (IEA). Along with our Management Assistance program, NESC continues to serve and support more than half our members with health and safety services. Key Indicators: Initially, we retained 15 school districts and added one new member. Since that time, we added yet another school district, Virginia Public Schools, to the regional collaborative. Strengths: MSC Coalition/Collaborative, Superintendent Leadership, NESC/IEA Partnership Challenges: Growth

Technology and Telecommunications Narrative Summary: With 360 sites now connected from across the region, we continue to process new requests for circuit connections and Internet service on a regular basis. Revenue continues to grow and expenses, including labor costs, remain manageable. Furthermore, our fund balances continue to move in the right direction. However, long-term debt (USDA loans) will continue to be the biggest strategic challenge for this initiative. Key Indicators: During FY16, NESC added 26 services, which includes direct connections to members and middle mile connections to service providers. This service expansion translates to an increase in transport revenue of $90,905, Internet revenue of $177,825, dark fiber revenue of $119,206, and co-location services of $4,792. In short, in FY16, gross revenue exceeded budget projections by 11% and operational expenses came in under budget by 9% Strengths: Market Position, Fiber Plant Assets, Anchor Tenants, Operational Management, Staff, Receivables (NSAs) Challenges: Recruitment/Retention, Market Competition (price elasticity, the value proposition), Statutory/Regulatory Environment, Long-term Debt Education Narrative Summary: Despite losing some programs, we have retained key staff, including leadership, in education services. In addition to academic challenge offerings and several “high impact” teacher development grants, we continue to expand the Regional Center of Excellence. Key Indicators: Participation in staff development for educators and academic challenge events for students continues to grow. Strengths: MSC Coalition/Collaborative, Statutory Authority (MDE), Regional Service Center, MSC Online, School Improvement, Academic Challenge, Staff Challenges: Grant-dependency, Continuity, Resiliency, Availability of Support Staff We enjoy working with our members in to help build and maintain strong and healthy communities, schools, counties, and other public and private organizations throughout Northeast Minnesota. We look forward to serving you over the year ahead.  

Organizational

Governance

GENERAL DESCRIPTION

The seven-county Arrowhead region, which makes up the Northeast Service

Cooperative contains 17,950 square miles and is approximately 230 miles from east to west and

240 miles from north to south. The region encompasses the counties of Aitkin, Carlton, Itasca,

Koochiching, St. Louis, Lake and Cook. Mt. Iron was chosen as the main office location in an

effort to centralize the services as much as possible.

Annual membership for the Northeast Service Cooperative was $150.

NORTHEAST SERVICE COOPERATIVE

BOARD OF DIRECTORS

TERM ENDS ELECTED DECEMBER 31 I.S.D. DISTRICT/AGENCY CHAIRPERSON JOHN BERKLICH, JR. 2014 2017 701 HIBBING VICE CHAIR SUE KASLOW 2014 2017 2 HILL CITY CLERK JULIE PETERSON 2014 2017 97 MOOSE LAKE TREASURER BOB RAHJA 2016 2018 695 CHISHOLM BOARD OF DIRECTORS WALT HAUTALA 2016 2018 2711 MESABI EAST JEFF CADWELL 2016 2018 CITY OF GRAND MARAIS LOUISE LIND 2016 2018 704 PROCTOR EX-OFFICIO SUPERINTENDENTS KIM BELCASTRO 2013 100 WRENSHALL JOHN KLARICH 1995 712 MT. IRON/BUHL

Organizational Membership

Aitkin School District ARCC Barnum School District Carlton School District Chisholm School District Cloquet school District Cook County School District Cromwell School District Deer River School District Duluth School District Ely School District Esko School District Eveleth/Gilbert School District Floodwood School District Grand Rapids School District Greenway School District Hermantown School District Hibbing School District Hill City School District International Falls School District Lake Superior School Littlefork School District McGregor School District Mesabi East School District Moose Lake School District Mountain Iron/Buhl School District Nashwauk/Keewatin School District Nett Lake School District Proctor School District St. Louis County School District Virginia School District Willow River School District Wrenshall School District Catholic Diocese of Duluth College of St. Scholastica NEAT Northland Learning Center North Shore Community School Marshall School Marquette Mesabi Range Community College Vermilion Country School

City of Aurora City of Babbitt City of Biwabik City of Buhl City of Chisholm City of Cloquet City of Eveleth City of Gilbert City of Grand Rapids City of Grand Marais City of Hibbing City of Hoyt Lakes City of Hermantown City of International Falls City of Kinney City of Marble City of Mountain Iron City of Silver Bay City of Two Harbors City of Virginia & PUC Biwabik Township Carlton County Cook County Board of Comm. County of Aitkin Koochiching County Lake County Minnesota County Info Systems AEOA AFSME Council 65 Arrowhead Library System Chisholm/Hibbing Airport Authority Community Action Network Cook Community Hospital Cook County Board of Commission Cook County Northshore Hospital Cook Area Health Services Hibbing Public Utilities Comm. Kootasca Community Action, Inc. Littlefork Medical Center Northeast MN Office of Job Training RAMS Range Mental Health St. Louis & Lake C. Railroad Authority St. Louis Co. Safety & Development Virginia Housing & Redev Authority West Lake Superior Sanitary district

MEMBERSHIP

Programs & Services

Cooperative Purchasing

Health Insurance Pools

Environmental Health & Safety

HEALTH INSURANCE POOLS 

The Northeast Service Cooperative operates two Health Insurance Pools in conjunction with Blue Cross and Blue Shield of Minnesota. Service to pool members is provided by in-house NESC staff along with the assistance of the Blue Cross Regional Account Managers, and our statewide insurance consultant. The 2015-2016 School (ISD) pool includes 27 member districts with 2187 contracts. The 2016 City, County and Other Governmental (CCOGA) employer pool consists of 35 groups with 2374 contracts. Additionally within the health insurance pools, the Northeast Service Cooperative offers its members, Flexible Spending (IRS Section 125 plans), Voluntary Employee Benefit Association (VEBA) and Health Savings Accounts (HSA) administration Services through our partnership with SelectAccount. Through the flexible spending accounts, we offer medical premium, medical flexible spending and dependent care accounts on a pre-tax basis. In October of 2015, the Service Cooperative insurance umbrella expanded to include the Arrowhead ProCare Pool in which we provides support through education and insurance expertise. 

 ENVIRONMENTAL HEALTH AND SAFETY 

 The Northeast Service Cooperative assists its members with two complimentary types of health and safety services: technical services and management assistance. Technical services were made available to members under a number of regional contracts between Institute for Environmental Assessment (IEA) and the Northeast Service Cooperative for a variety of state and federal government health and safety mandates including: 

• Environmental Health & Safety • Bus Driver Safety Training • Indoor Air Quality Management • Drug and Alcohol Testing • Health and Safety Facility Projections • Other services as needed (e.g. special requests for training, consultation) 

 The Minnesota Department of Education has authorized the Northeast Service Cooperative to host a Health, Safety and Environmental Management (HSEM) program for regional school districts with a focus of providing on-site regional health, safety and environmental management. These services assist districts in identifying, prioritizing and scheduling health and safety capital projects and in the development and betterment of written programs. Northeast Service Cooperative also provides access to a Certified Playground Safety Inspector. This inspector identifies factors that contribute to playground accidents. Areas of inspection include design and arrangement, installation and maintenance, surfaces underneath equipment, and how children use the equipment.    These two programs of technical services through IEA and the management assistance provided by Northeast Service Cooperative staff, allow Northeast Service Cooperative to provide an integrated program of assistance in environmental health and safety to its regional members.

COOPERATIVE PURCHASING

Fiscal year 2015–2016 was a successful year in both sales and membership for the Cooperative Purchasing Program. We continue to see new organizations join cooperative purchasing to access the products and services offered through our vendors. Statewide, the 7

service cooperatives operate cooperative purchasing using the Cooperative Purchasing Connection (CPC) logo:

CPC meets all purchasing requirements allowing members to access the discounted pricing without having to bid on their own. Contributing factors to the continued success of the program are:

- Statewide bidding process with 7 other service cooperatives in Minnesota to achieve greater purchasing volume. 

- New offerings and a wider variety of preferred vendor programs. - Continuous evaluation of existing programs. - On-line ordering systems available to members. - E-mail correspondence to expedite product quotes and dissemination of product

information has been rewarding and cost saving. - Increased exposure to public library, city, county, other governmental agency

members. - Increased awareness of member’s purchasing needs. - Development of purchasingconnection.org for vendor information and

CPCExpress.org for ordering.  

The following products and services were available to members: Paper Copiers Computers & Supplies Playground Equipment Audio Visual Equipment Technology Fluorescent Bulb & Electronics Recycling Sound & Noise Control Building Bulbs & Filters Tools  Custodial Supplies Vehicles Office Supplies Furniture Computer Software School Supplies SMART Board Training Bldg & Grounds Maintenance Sports Surfacing, Equipment & Lighting Leasing Services Building Security Food & Kitchen Supplies  

Visit our purchasing website for a full listing of offerings available through our vendors: http://www.purchasingconnection.org/site/default.aspx?PageType=1&ChannelId=23&DirectoryType=6  

 The Northeast Service Cooperative plans continued improvement and growth in the program.     

Academic Enrichment Programs Programs & Services

ACADEMIC ENRICHMENT PROGRAMS

The Academic Enrichment Programs coordinated by the Northeast Service Cooperative continue to remain strong as a result of the stability and success of our regional academic teams and stu-dents. During the school year, thousands of students in our region participate in our academic enrichment programs. Academic Enrichment Program Participation NESC 2015-2016 Knowledge Bowl (KB) Interdisciplinary academic competitions for students in grades 6-12. Teams of students compete in both written and oral contests that challenge students’ recall, prob-lem solving and critical thinking skills. Top Senior High Teams advance to a State competition. Elementary KB – Grade 5-6 Junior High KB – Grades 7-8 Schools: 12 Schools: 17 Teams: 37 Teams: 52 Students 259 Students: 364 Junior Varsity KB – Grades 9-10 Senior High KB – Grades 10-12 Schools: 17 Schools: 33 Teams: 51 Teams: 136 Students: 357 Students: 816 Minnesota Student Inventors Congress (MSIC) Regional Inventor’s Fair for students in grades 4-12. Each student or two-student team has the opportunity to display an invention and have their work judged on creativity, originality and the invention process. The top 25 inventions are invited to a non-competitive State Inventors Con-gress. Discontinued in 2015 Spelling Bee (SB) Regional spelling competition for students in grades 5-8. The top four winners advance to the Multi-Regional State Spelling Bee. Districts: 14 Students: 24 at Region Bee; Missing district data for students participating at the district level Future Cities Competition (FCC) FCC is a student competition for grades 7 & 8 designed to promote interest in math, science and engineering. Student teams design and build a “future city” using computer software and recycled materials, while working with a volunteer en-gineer. Teams are able to participate in a state event and have a chance to advance to a national competition as part of National Engineers Week.

Total Student Participation in NESC Academic Enrichment Programs for 2015-2016:

1,820 Total Regional School Student Participation

is unavailable due to missing district data for students participating at the district level

Total KB Student Participation: Teams: 276 Students: 1,796

Distance Learning Initiatives Programs & Services

DISTANCE LEARNING INITIATIVES

The Minnesota Service Cooperatives Online Learning Program (MSC Online) provides a regional online learning option for rural and urban students throughout Minnesota. The MSC Online program represents an innovative regional solution to providing high-quality, cost-effective online learning opportunities for students who have scheduling conflicts in their home district, need credit recovery, or need access to advanced, additional or specialized courses in a flexible learning environment. The MSC Online Learning Program is a part-time, non-diploma program, so students remain enrolled in their own districts while taking their online courses. It has been exciting to see continued year-to-year growth in our program. During the 2015-16 school year, MSC Online had over 540 course enrollments from 45 different high schools throughout the state. MSC Online utilizes rich multi-media curriculum from FuelEducation. For the 2015-16 school year we also expanded our offerings by purchasing a number of elective courses from eDynamic. The courses in our program are delivered using Moodle as the learning management system. All of our courses are aligned with national and state standards. During the 2015-16 school year, we offered 22 middle level courses and 115 high school courses. These offerings included a number of elective courses that are typically not available to students in rural school districts. Courses new to our program last year included Japanese, Chinese, Middle School Career Explorations, Biotechnology, Lord of the Rings & Its Literary Influence, and Women Studies Through Film. A full list of courses offered by our program is available for review at http://www.msconline.us. The Northeast Service Cooperative continued to assist our program by providing designated staff for administrative support, technical support and training. The MSC Advisory Council met regularly during the year to provide input and program guidance.

Programs & Services

School Improvement

Reading Corps

Center for Excellence

SCHOOL IMPROVEMENT

During the 2015-16 school year we hosted 22 training sessions with a total of over 500 participants from 23 school districts. Four of our sessions were multi-day trainings of 3 – 5 days throughout the year and the others were single day sessions. Topics included: Understanding our MCA Data and Multiple Measurement System, Inside the Collaborative Classroom, Increasing Rigor in the Classroom, Using the Minnesota Mathematics Standards, and two Literacy Cohorts. Our two consultants spent many days in schools working with teachers to improve teaching strategies and working with site improvement teams to develop and implement their school improvement plans.

MINNESOTA READING CORPS

During the School year, our consultant served as the Master Coach for the K –3 Minnesota Reading Corp in 13 regional school and worked with 28 members who each served a minimum of 15 students per day. The foundational elements of the Reading Corps Model integrates data‐based decision making, evidence‐based interventions, frequent progress monitoring of student’s skills, and fidelity of implementation. The Model is dependent on the support provided by both Master Coach and Internal Coach.

NORTHERN PINES REGIONAL CENTERS OF EXCELLENCE The Northeast Service Cooperative is home to one of the state’s Regional Centers of Excellence an initiative through the Minnesota Department of Education (MDE). The goal of the Regional Centers of Excellence is to work with school districts on closing the achievement gap between high and low performing students. The Regional Center of Excellence Director works with educational leaders in the region, other regional directors across the state and MDE to fulfill this initiative. By working together, all schools will have access to assistance and will increase student achievement. These Centers of Excellence across the region feature specialists that bring a range of skills and expertise to the regions they serve. They deliver support and services directly to the school. MDE releases a list of Priority and Focus schools every three years that are considered low-performing. The specialists work with the 10 percent of schools with the greatest achievement gaps. Information reviewed include: students’ scores on state tests, student academic growth from year to year, reduction in achievement gaps, and graduation rates. Once designated, Priority and Focus schools must create a plan to increase student achievement, and this is where the Minnesota’s Regional Centers of Excellence come in. The others are located in Thief River Falls, Fergus Falls, St. Cloud, Marshall, and Rochester. In addition to content expertise, center specialists offer an outside perspective on schools’ efforts to increase student achievement. They provide guidance and support to schools through needs assessments, building, and strengthening leadership teams, and developing continuous improvement plans.

Statistics provided by a regional site: From 2014 to 2015, center specialists spent almost 13,000 hours in direct service to 78 schools. As a result, 65 percent of Priority and 63 percent of Focus schools showed improved growth in one year. In addition, 74 percent of the first cohort of Priority schools show improved student growth from 2011 to 2015, while 56 percent of the first cohort of Focus schools show improved student growth from 2011 to 2015. Nearly 20 percent of schools designated Priority or Focus in 2012 that worked with a Regional Center improved so much that they were recognized as Reward or Celebration-Eligible three years later. In 2015, the Regional Centers of Excellence was named one of Harvard Ash Center’s Top 25 Innovations in Government.

Professional Development Sessions were offered in conjunction with the Minnesota Department of Education, with more than 120 educators reached from more than 30 school districts across the state. School districts in the Northern Pines region were impacted by the these sessions.

Technology Services

Programs & Services

INFORMATION TECHNOLOGY & TELECOMMUNICATIONS Information Technology is ever changing and continually improving and advancing, which is the reflected through the variety of services provided at the Northeast Service Cooperative. This department continues to evolve to meet the growing and changing needs of members. The IT department has worked with our members to provide local area network solutions as a way to improve technology. This department has expanded to incorporate leaders in the field who have expertise in a variety of areas. From GIS mapping to virtualization, NESC specializes in many areas of technology and telecommunications that makes being on the edge of technology exciting. Customized Customer Support Program The Northeast Service Cooperative IT department has been available by arrangement to provide on-site customer support to network members. Technical issues have come up which have required assistance by the technical staff. Network Services · 1/10/100 Gbps connectivity over an optical transport network · E-Line, E-LAN, E-Tree and E-Access services (point-to-point, multipoint, working/protect) · Cost effective fiber-based services with optional diverse/redundant connections · High-speed, high-capacity broadband connections to support real-time or asynchronous

exchange of complex data – audio, video, documents and images – across a private and secure IP infrastructure

· Core ring redundancy, scalability and expansion for high-demand applications, newly

emerging technologies and new sites. · LAN consulting, design and engineering including cabling integration and deployment and

mobile/wireless solution design and deployment · Scaling available for connected services offered including virtualization, desktop and

application, unified communications, streaming and content data networks, data center services, server and app hosting, secure data storage, and engineering and management services

· Secure collocation Optical Transport Network facilities with access to redundant environmental

management and power backup · Fiber Optic Backbone throughout northeastern Minnesota including the following counties:

Aitkin, Itasca, St. Louis, Koochiching, Cook, Lake, Pine and Carlton Minnesota Telecommunications Northeast Service Cooperative has operated a telecommunications network providing internet access to our member school districts and regional libraries more than 15 years. The Northeast Service Cooperative achieved CLEC (Competitive local exchange carrier) status in 2006

Internet bandwidth previously delivered by T1 transport services purchased by local carriers, has been replaced with fiber connectivity where available. The increase in available bandwidth has allowed our member school districts to expand curriculum offerings to students. The Northeast Service Cooperative has been providing fiber connectivity for broadband access to a wide range of critical service sites in northeast Minnesota. Northeast Fiber Network The Northeast Fiber Network makes dark fiber, wavelength services available to the public sector and to private sector technology service providers in unserved and underserved rural areas of Northeast Minnesota. The Northeast Middle Mile Fiber Project makes broadband services viable for a vast geographic region, creating a fiber optic backbone that services hundreds of critical service sites along more than 865 miles of fiber within eight counties including St. Louis, Lake, Cook, Koochiching, Carlton, Pine, Itasca, and Aitkin. A number of anchor institutions are connected to the network including state and municipal agencies, public school districts, higher education, health care and public libraries. Critical service sites connected to the project have access to high speed broadband. This enables participating members to have access to services possible with broadband. It also positions NESC to provide additional services and work with members to open even more doors of possibilities. Information about the Project:

Optical Transport Network Facilities throughout the region. Anchors are connected with a minimum Gigabit (1000Mbps) Connectivity and up to

10Gbps. The network provides 2.8 Terabit current core switching capacity using DWDM

technology. The network is designed to provide redundancy and extend connectivity to underserved

and unserved areas. The Project connects about 332 critical service sites across the region including:

Sovereign nations College and university sites School districts Health care facilities Community libraries State, County and City sites including Duluth and St. Louis County

Long term (20+ year) carrier level public/private partnerships have been established:

Agreements are in the form of: joint construction, capacity exchange and Indefeasible Right of Use (IRU).

Allow for extension of cost effective fiber based service to both commercial private business and potential future residential customers.

Network Operations Center (NOC) Email support requests to: support@nenet.us or call 1-866-306-3926. Daytime hours of operation are from 8 a.m. to 4 p.m. With the implementation of the broadband network, there is someone on-call by calling this number. This provides access to someone 24 hours a day, seven days a week.

Call Routing: The NOC phone is answered by one of the IT staff on duty unless excessive call volume necessitates that a call be routed through the voice mail system. Callers will have the option to hold for an available technician, or leave a message, or call back.

Technical Support: We have on board experienced technical staff that’s available to answer and troubleshoot your call problems. Specific information related to support can be accessed by emailing: support@nenet.us.

Network Monitoring Critical systems will be monitored 24x7 by our network management system. Manage precise tracking of your internal incidents / troubles using our enterprise level Kayako Live Response Support System. -Online Web-based Help Desk application -24x7 Advanced Network monitoring -24x7 Critical systems monitoring -Web-based Monitoring reports Support requests are sent to: support@nenet.us

Multimedia Support Services Distance Learning / ITV / Streaming (Multicast) Services NESC’s Multimedia Support Services help bring a focused and managed plan together to help you meet both short and long term goals in improving reliability and usability of these services. Traditional Distance Learning and ITV are only part of providing valuable multimedia services. Streaming (Multicast) support is essential, requiring properly configured networks to ensure network performance and quality delivery. Fully operational ITV equipment and support are important in distance learning initiatives for school districts.

Border-to-Border Broadband Development Project NESC received funding from the Department of Employment and Economic Development (DEED) through the Border-to-Border Broadband Development Grant and Iron Range Resources and Rehabilitation Board (IRRRB) to expand broadband into unserved and unserved regions. The NESC/Frontier Border to Border Phase I Broadband Project utilizes funding from DEED, IRRRB, and NESC. The project will include Fiber to the Node and equipment upgrade by Frontier so that 877 households will meet state broadband goals of 10Mbps/5Mbps, with additional having upgraded service. There will be up to 30 township hall and fire halls with high-speed connectivity. The project will be a build-out of 70 miles of fiber. The project started in 2015 with completion anticipated for June of 2017.

FISCAL

REVENUE AND EXPENDITURES

Excludes Insurance Pools

July 2014 - June 2015

Ending Balance as of June 30, 2014 $ 240,748.85

Fiscal Year 2015

Revenue Expenditures

General Fund

Cooperative Purchasing $ 210,395.34 $ 214,599.69

Academic Programs 76,720.49 57,491.30

Ed. Services: On-Line learning 262,757.80 243,014.19

Ed. Services: School Improvement 112,621.05 87,833.94

Environmental Health & Safety 162,713.60 178,033.47

Other Management Services 856,996.97 622,153.56

Total General Fund $ 1,682,205.25 $ 1,403,126.15

Information Technology 5,240,852.98 4,124,559.10

Total General Fund and Info. Technology $ 6,923,058.23 $ 5,527,685.25

State and Federal Grants

OSHA Facilities Project $ 55,152.71 $ 60,836.72

AYP Project - 620.25

CPSD Title Video 109,095.12 105,527.20

Regional Special Ed Services 531,180.33 572,510.00

Math & Science Grant 90,178.81 90,178.81

Eddy Foundation Grant - 825.00

Arrowhead Connect - MMFP 2,908,007.07 2,907,420.39

MN Reading Corps 37,204.17 31,328.37

School Climate 1,601.22 1,601.22

Education Innovation - 3,283.21

Centers of Excellence 190,534.71 187,305.92

Total State and Federal Grants $ 3,922,954.14 $ 3,961,437.09

Fiscal Host Projects

Education Innovation Partners 319,875.16 160,717.27

Northeast Alliance for Technology 765,238.62 758,371.53

Total Fiscal host Projects $ 1,085,113.78 $ 919,088.80

Total $ 11,931,126.15 $ 10,408,211.14

June 30, 2015 Ending Balance $ 1,763,663.86

For more information on the Annual Plan, contact Melissa Cox at mcox@nesc.k12.mn.us