[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6209992,"mediaKeyId","3728669-c85274351ee61b4442b466c1663266e7","parentId",3728669,"title","McAllen ISD projects health fund shortfall; staff propose contribution increase, plan design changes and pharmacy RFP review","audioSeconds",2741,"startMs",1914000,"endMs",4655000,"viewUrl","/Search/View?dp=1&key=3728669-c85274351ee61b4442b466c1663266e7&start=1914&end=4655","thumbnailUrl","https://assets.pipeline.soar.com/3728669-c85274351ee61b4442b466c1663266e7/thumbnail_1914000.jpg","articleUrl","/articles/6209992/Texas/McAllen-ISD-projects-health-fund-shortfall-staff-propose-contribution-increase-plan-design-changes-and-pharmacy-RFP-review","mediaUrl","https://secure.pipeline.soar.com/6209992-2cd21d63b85f35a36a525df602923c1d/orig.mp4?Expires=1773742069&Signature=kjKBFM9-6n88Zme5MU7Ju96yVC7DifM0LlKpaAsn2Req83Mhdrhw6Tcbuz4I6NeO3FqL~uDit8Fs7oYX-tSGpygoWABnJExbQkwksVmiDX4T8mrVEr-kmuwcJNB9oXMzZZGEuVanz0APDcU8TkcAI7PuIKWUoxGVPQCDRTCsP2rn-0-uJJLA04HDBqTEbCZoVMVzEYq3SR8FXxCL3UOlJG9UXVEFZ-ixHcdBdQRHeogAtQ6~R5ZI-NrykxgwRGcwahROiVx-mVJpdJ3Z-kNw0HvAmRZqCzJEAO24SEjI1jEZzxR602EC0buRQBd~JtiAVcvdg6ttF2zlwDi9FgXqSA__&Key-Pair-Id=KUT5TJCACFTXG","author","McAllen ISD","date","2025-06-09T20:21:51Z","article","McAllen Independent School District benefits staff presented a health plan update Monday that projected the health insurance fund would finish the current year in the red and could show a larger deficit next year without design changes or additional contributions.

Andy Silva, speaking for benefits and insurance, told trustees the health fund ended the prior fiscal year with a marginal positive balance but is projected to finish 2024–25 about $1.4 million in the red. Without changes to employer contribution or plan design, Silva said the projection for 2025–26 is roughly a $4.8 million deficit. \"At the end of last fiscal year, barely did that break even point,\" Silva said of the fund balance; he later summarized the projection as \"about $1,400,000\" in the red for the current year.

Why it matters: A sustained deficit in a self-funded plan may require increased employer contributions, increased employee premiums, or plan design changes; all three carry financial and personnel implications for employees and the district.

Staff-proposed and modeled options described in the presentation:
- Employer contribution increase: The district currently budgets $466.50 per employee per month into the self-funded health plan. The presentation included a planned $55-per-employee-per-month increase (to $521.50) that would add roughly $2,000,000 to the fund balance.
- Plan consolidation / single-plan scenario: Staff modeled a single, modified basic plan (one-plan offering) as a potential cost-containment option. Modeling showed that consolidating to a single-plan structure could materially reduce fund pressure but would require roughly 542 members to migrate from richer plans to the base-level design.
- Specialty drug tier for GLP‑1 medications: Staff identified GLP‑1 drugs (Manjaro, Ozempic and similar) as a major pharmacy cost driver. Proposals include adding a specialty tier with coinsurance (20–30%) for targeted drugs; modeling showed potential pharmacy-side savings in the low hundreds of thousands per year (example: roughly $278,000 for a 30% coinsurance on targeted specialty drugs).
- 340B / hospital-pharmacy sourcing pilot (ZorroRx example): Staff cited a vendor arrangement that would route a limited set of medications through a hospital pharmacy under federal 340B purchasing to capture discounts; current modeling identified about 115 members and potential annual savings of about $137,000 for the eligible drug set.

Enrollment and utilization notes: Presentation data showed 3,046 employees enrolled in district plans: majority (2,200+) on the basic plan; 503 in the high plan; 39 in the state plan; and roughly 284 who waive coverage. Silva said the pharmacy specialty-driver analysis identified about 112 members on Manjaro at the time of modeling.

RFP process and vendor responses: The district is in an RFP year for both medical administration and pharmacy benefits. Silva said the medical RFP received four responses: two third-party administrators (Blue Cross Blue Shield, the incumbent, and UnitedHealthcare) and two proposals described as direct-care models that do not function as full claims administrators. The pharmacy RFP received five responses, including the incumbent RayaRx and proposals from Blue Cross, ProactRx, ServRx and UnitedHealthcare. Staff said selection interviews and recommendation work will take place over July–August, with a target to present an award for board consideration in September so new arrangements can be in place ahead of annual enrollment.

Trustee discussion and context: Trustees asked whether specialty drugs or unpredictable high-cost medical claims are the principal drivers of the deficit; Silva said unpredictable high-cost medical claims (catastrophic events) can spike year-to-year but that the pharmacy specialty drugs have been a consistent cost driver over recent years. Board members also discussed non-financial plan features, employee education on existing wellness and nutrition benefits, and the trade-offs of maintaining multiple plan options versus a single-plan design.

Ending: Staff will complete RFP evaluations and modeling, return with recommendations and present vendor finalists and scoring for board consideration later this summer. The board suggested interviews with finalists and expects an award recommendation before or during the September timeframe, ahead of annual enrollment.","mediaType","Video","parentTitle","McAllen ISD Board Workshop (June 9, 2025)","oneSentenceSummary","McAllen Independent School District benefits staff presented a health plan update Monday that projected the health insurance fund would finish the current year in the red and could show a larger deficit next year without design changes or additional contributions.","taxTitle","MCALLEN ISD, School Districts, Texas","taxId",14239,"location","Texas","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6209997,"McAllen ISD presents near-final 2025–26 budget with raises and stipend increases; final adoption set for June 24",1681,236000,1917000,"/Search/View?dp=1&key=3728669-c85274351ee61b4442b466c1663266e7&start=236&end=1917","https://assets.pipeline.soar.com/3728669-c85274351ee61b4442b466c1663266e7/thumbnail_236000.jpg","/articles/6209997/Texas/McAllen-ISD-presents-near-final-202526-budget-with-raises-and-stipend-increases-final-adoption-set-for-June-24","https://secure.pipeline.soar.com/6209997-c68fe4fc1f16e3e969f43a4fa5247954/orig.mp4?Expires=1773742069&Signature=l6OmeZx8ICE-hjCpVUXi0kSdgJz8eDk1hTXnPiV-tUf0bfr6U6sPvmYUBBso9NEVjmNiE1RIOPCIrXU1C~3297KaC42Mx9~bKQ0ZSee5PWL9BBtf8ydxrcisuZyTvujPAXuYEMKduVWwqHQPUELmHNb-jyzdTDDXsnEN5VHyOuc9Tx2RgaCignUFijGkIx985w4zeZ1yQvU-kwX7PJFsBw7PxRTs7y2H5aCCdPdrW6dHVvTWC4WmPiQRVaVQTUlNIi7MCGBF4LcHS-KsF~A8oasSwoh8eDsbEJ5oDezFNw~oPwqmUX8neRuACF3nb6XiTN45OjiAhbydQw2RGiF7Ww__&Key-Pair-Id=KUT5TJCACFTXG","McAllen Independent School District staff presented a near-final balanced budget for the 2025–26 school year Monday, saying the proposal incorporates House Bill 2 funding and district priorities and will be returned to the board for final adoption on June 24.

The presentation, led by Lorena Garcia and Joel Garcia on behalf of the budget team and introduced by Superintendent Dr. Thomas Gutierrez, outlined general fund revenues and appropriations, proposed compensation changes, stipend increases and a $2,000,000 contribution to the district health plan. \"We are pleased to bring forward a balanced budget for the 2526 school year,\" Lorena Garcia said during the presentation.

Why it matters: District leaders framed the budget as a stability-focused plan that preserves staff and avoids school consolidations while directing new state dollars to pay increases for teachers and additional resources for campus and support staff.

Key details from the presentation:
- Teacher compensation: The budget models tiered increases tied to House Bill 2: $1,560 for teachers with 1–2 years’ experience, $2,500 for 3–4 years, and $5,000 for teachers with five or more years. The presentation lists a proposed starting teacher salary of $55,300.
- Other employees: Non-teacher employees are modeled to receive a 2.5% increase to their new midpoint. The district said midpoints have increased and modeled pay accordingly.
- Stipends and planning time: The budget includes multiple stipend updates (examples cited: master stipend recommended increase from $2,000 to $2,500 per outside consultant recommendations) and a $2,000,000 contribution to the health plan fund. District staff said they are working to restore secondary teacher planning periods; restoration is not yet modeled in the balanced budget and would be added if savings are identified during the year or via a future amendment.
- Payroll and object-code detail: The presentation noted payroll represents 80.84% of certain fund expenditures and that the district is targeting reductions via attrition. Capital outlay items called out in the presentation included $525,000 in child nutrition capital purchases (refrigerated truck and kitchen equipment).

District staff described the budget as mostly finalized, with a few technical entries (fringe benefits, final stipend modeling) remaining. The draft annual budget book was presented and will be finalized for the board packet; staff said the final book will be ready by June 19 for the June 24 meeting. \"At this stage, we are focused on finalizing and implementing the budget as presented,\" Dr. Gutierrez said.

Discussion highlights: Trustees asked how one-time surplus and modeled but not-yet-modeled items would be allocated. Garcia said the draft showed a modest general fund surplus (presented as $439,690) that staff expect to use to increase certain stipends already identified; the exact fiscal impact is still being calculated in the HR/staff-planning system. Trustees pressed to prioritize hourly employees (kitchen staff, bus drivers, custodians); presenters said district leaders favor a 75¢ or no-less-than-50¢ hourly increase for eligible hourly staff if it can be modeled and funded.

Process and next steps: Staff will finish fringe and staff-planning database entries, finalize the budget book by June 19, and return the proposed budget to the board for adoption at the June 24 board meeting.

Ending: The board workshop moved on to the health plan update after the budget presentation. The meeting later recessed and was adjourned by motion (see actions).","District staff presented a near-final balanced budget for 2025–26 that includes tiered teacher raises tied to House Bill 2, a 2.5% midpoint increase for other staff, stipend increases and a $2 million contribution to the health plan; the board will consider final adoption June 24.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6209986,"McAllen ISD discusses facilities needs assessment and timing for a possible bond election",0,4465000,"/Search/View?dp=1&key=3728669-c85274351ee61b4442b466c1663266e7&start=4465&end=4465","https://assets.pipeline.soar.com/3728669-c85274351ee61b4442b466c1663266e7/thumbnail_4465000.jpg","/articles/6209986/Texas/McAllen-ISD-discusses-facilities-needs-assessment-and-timing-for-a-possible-bond-election","https://secure.pipeline.soar.com/6209986-aee2b9c5491c0941fa0ed430088c6051/orig.mp4?Expires=1773742069&Signature=imp-YqotZlWjDZjYtWuSyq-MIfQreY9Yhq8syMR2FNmmf8UY9A8TNSSd22U7AB6jV4pkYTW7s7l6A6cFeQPq7kJxtVvGTlHXvxa0rr9D7DWTpCPrvKMff7f~moNmV7YHLLW68N3BjpxKjddK6BUt~xSeyg3Pho52crd9vdDEJr-ZAUB1u9aKmHN89gq4mnn3QAzMFeHDhIYAnYS-ATZ4URDaIaWXVGoYrrI1q7Jehn5m0NGPqZG~uNarb0-NpxMG92b1AOnkrCyod39yGLGuinyqbLADaWiXxJtV5S6Qa5X-6NvA2PIRH~r8acxkVBY3lXvZ1WSaha54gOJGVa41og__&Key-Pair-Id=KUT5TJCACFTXG","District staff briefed trustees Monday on the status of a facilities needs assessment and the timeline for a potential bond election, including whether to pursue a May 2026 election rather than a November uniform election.

Lorena Garcia reported that House Bill 19 and Senate Bill 1209 — bills that would have constrained the timing of bond elections to November — had died in the legislative process, leaving district timing options unchanged. Staff told trustees they had updated the facilities forecast advisory committee and planned further site visits and walkthroughs. The district's consultant, MGT, has provided draft pieces of the facilities needs assessment and is expected to deliver a final report in early August.

Why it matters: The timing and content of any bond proposal will determine the district's ability to address facility priorities identified in the MGT report; shifting to a May election would change the outreach and preparation timeline.

Next steps described by staff: MGT will be asked to present a summary report to the board in early August; staff and board members may conduct site visits and walk-throughs this fall to align the consultant's recommendations with district priorities. If the board favors a May 2026 bond, staff said the extra time would allow additional assessment and preparation.

Trustee discussion: Trustees requested that the email update sent to facilities advisory committee members be forwarded to the full board for transparency. Trustees also discussed scheduling board-member walkthroughs with staff and the facilities committee.

Ending: Staff will schedule an MGT presentation and continue planning site visits. The board will receive the final facilities needs assessment in early August and use it to develop a bond timeline and priority list.","Board and staff discussed the facilities forecast advisory committee, a draft MGT facilities needs assessment and whether a bond election should be scheduled for May 2026 rather than November; staff will host an MGT presentation in early August and continue campus walkthroughs.","actionData","errors"]

Article not found

McAllen ISD projects health fund shortfall; staff propose contribution increase, plan design changes and pharmacy RFP review

McAllen ISD presents near-final 2025–26 budget with raises and stipend increases; final adoption set for June 24

McAllen ISD discusses facilities needs assessment and timing for a possible bond election