One of the most important areas of decision making that will occur in the Planning Phase of the districting project has to do with personnel issues. Changes in personnel policies can range from virtually no change to the need to create totally new personnel policies and procedures. The Idaho Commission for Libraries has identified four different kinds of changes for personnel that can occur when a new district is created.
Little or No Change. This occurs in the following instances:
- when all libraries in the new district were already operating under the same administrative unit
- when the new district does not operate a library, but contracts with an existing library for services
- when a library district annexes untaxed territory that contains no existing city library
In these cases, all the district’s personnel are employed under a previously established library or administrative structure. Salaries and benefits remain the same. If there is no change in the name of the employing agency, no further work will be needed.
If a district is given a new name, the new name will need to be reported to federal and state income tax agencies, the state insurance fund for workers compensation, and the state department of employment for unemployment insurance coverage. Insurance companies and other companies providing personnel benefits will also need to be notified of the legal change in the district.
- The Internal Revenue Service has more information on change of business name.
- The Idaho State Tax Commission has more information on name change (legal business or DBA). The Idaho Secretary of State’s office can help you with filing an assumed business name.
- The Idaho State Insurance Fund has forms and contact information online.
- The Idaho Business Registration System offers online applications for permits and accounts.
- The Idaho Counties Risk Management Program (ICRMP) offers insurance and risk management training to local governments, including library districts.
Creating a New Personnel System. This occurs when a new district is established where no library existed before, and the district will operate its own library.
The working group will have to consider a salary structure. In planning for the new district, the working group can check with similar library districts to see how much they are paying. They should also look at similar jobs in their community, as they will be competing with other community employers for employees.
The new district will need to establish the following required accounts:
- federal income tax
- state income tax
- Social Security
- workers compensation
- unemployment insurance
The working group should also examine possible benefits that the district could provide, including:
- Health Insurance
- Life Insurance
- Retirement, usually through the Public Employee Retirement System of Idaho (PERSI)
- Short/long term disability
While the working group can make recommendations on personnel policies for the district, employees must understand that final decisions will be up to the new board. It is typical, however, that when a new district is formed the first board is made up of members of the working group or existing library board members. No guarantees can be made, however, as the first district board will be appointed by the county commissioners.
Transfer from a City to a District Personnel System. This change occurs when a city library becomes a district library.
The new district will need to establish federal and state income tax accounts, as well as accounts for Social Security and workers compensation. The working group will also need to look at what possible changes may occur in benefits, since the district will not have as large an employee group as a typical city. This
may affect the district’s ability to continue to provide health and life insurance benefits. The Affordable Care Act has put in place comprehensive health insurance reforms that have improved access, affordability, and quality in health care for Americans. Library districts that cannot afford the economies of scale enjoyed by larger employers may consider providing a health care allowance to allow employees to purchase insurance from Idaho’s ACA marketplace: Your Health Idaho. Your attorney can answer your questions about how this would work.
The working group should also be prepared to make a recommendation to the new district board about the district’s participation in PERSI or another retirement program and how to provide unemployment insurance. Agreements should be reached with the city about the transfer of employees from the city to
the district payroll. A written memorandum of agreement with the city can help to avoid confusion on this procedure.
Combining Personnel Policies. This change occurs in any districting project when two or more existing libraries that have not shared a common administrative structure combine or consolidate.
In this kind of districting project, the working group needs to decide what personnel policies it will recommend becoming the policies of the new district. It should also have some plan for integrating various staffs of existing libraries into one staff for the new district. All of this will need to be negotiated in advance before beginning the legal progress of creating or expanding the district.
In some cases, this is relatively easy. For example, when the Harrison Public Library combined with the Kootenai County Library District, the Kootenai County personnel system became the personnel system for the Harrison branch. The Harrison librarian would work under Kootenai District supervision and would
work under Kootenai District personnel policies. It was recognized that it was so advantageous for the Harrison Library to become part of the district that there was no question that the district personnel policies should prevail.
In other cases, however, this can involve very delicate negotiations. Staff members who once worked as library directors will now have to work under the supervision of a district library director. In addition, the combination of multiple libraries typically means that some employees may lose benefits. For example, a
city library may be able to provide health insurance because it is part of a larger city employee group. When the library becomes part of a district, the district may not be able to afford the higher costs for smaller groups of employees.
Potential loss of autonomy and benefits for their personnel need to be examined by all libraries that are considering becoming part of a districting effort. In some cases, the prospect of losing autonomy and benefits may lead employees to oppose a districting effort and thereby endanger the whole process. In such cases, it may be best for all concerned to reconsider whether the city should be included in the districting project as a full partner. It may be better for the district to be created around the city and the city library to provide services to district residents under a contract. This must be a local decision and will depend a great deal on the politics of the situation.
In determining what salary and benefits for the new district should be, it is best to make a systematic comparison of what the “member” libraries of the new district provide and measure those salary and benefit packages in their dollar value.
In addition to recommending what salary and benefits will be under the new district, the working group will also need to begin the administrative work that will be necessary to transfer income tax accounts, Social Security, workers compensation, unemployment, and other accounts as necessary.
Again, it should be emphasized that the working group will not be able to make any final decisions on personnel policies, including salary and benefits. Only the new district board will be able to do that. However, since working group members often are appointed as the first board, particularly if the county commissioners are supportive of the district, current employees can be given some assurance, but no guarantees, about their salary and benefits if the new district is created.
General Information on Personnel Administration and Benefits. In a Handbook like this, it is not possible to cover all aspects of personnel administration for a new district. However, we believe that the following general information will be especially useful to you:
- Federal Income Tax, Social Security, and Medicare. A new district will need to register as an employer with the Internal Revenue Service, and to file W-4 forms for all employees. Upon doing so, the district will receive a federal tax number and instructions on how to deposit federal income tax withholding, Social Security and Medicare withholdings. The IRS has offices in Idaho that you may call or visit.
- Verification of Eligibility for Employment. The new district will also need to fill out and keep on file “Employment Eligibility Verification” (Form I-9) from the U.S. Department of Homeland Security’s U.S. Citizenship and Immigration Services.
- State Income Tax. The new district will need to register as an employer with the Idaho State Tax Commission. Upon doing so, it will receive a state income tax number.
- Worker’s compensation. The district needs to register as an employer with the State Insurance Fund. Upon doing so, it will be sent a form to fill out for workers compensation payments. The form will ask questions about the number of employees, board members, and volunteers, and the kind of work that they perform. Based on this information, the State Insurance Fund will decide the amount to be paid for workers compensation.
- Unemployment Insurance. Every registered business in Idaho with employees must file unemployment insurance tax reports with the Idaho Department of Labor and make payments each quarter. These funds provide temporary, partial wage replacement to workers during period of involuntary unemployment.
Optional Benefits:
- Public Employees Retirement System of Idaho (PERSI). PERSI is the retirement program for employees of the State of Idaho. Local governmental units, such as library districts, can also become members of PERSI, but are not required to participate. The costs of the library district’s participation in PERSI will depend on several factors, and therefore the new district board will need to determine whether it wishes to participate in the program. The working group, however, can gather information about possible costs of the program by contacting PERSI. On PERSI’s homepage, there is a fast facts flyer that you may find useful in your campaign. The Contact Us link as at the top of the page.