The Lafayette Parish School Board (LPSB) held a regular meeting on May 15, 2025, where significant discussions centered around the extension of a fiscal agent contract and the authority to negotiate insurance brokerage services.

The meeting began with a motion to approve the extension of the fiscal agent contract with First Horizon, which was approved with a vote of 7 in favor, 4 against, 1 abstention, and 1 absent. Notably, board member Ms. Labou recused herself from the vote due to a conflict of interest, as her husband is employed by First Horizon.

A more contentious topic arose regarding agenda item 3.16, which proposed granting the superintendent the authority to negotiate a contract for casualty and property insurance with Arthur J. Gallagher Risk Management Services. Board member Mr. Hidalgo moved to defer this item to the Board Insurance and Finance Committee for further review. This motion was seconded by Mr. Bajoran and ultimately passed with a vote of 9 in favor and none against.

Public comments highlighted concerns regarding the proposed change in brokerage services. Tyler Smith from Alliant Insurance Services urged the board to vote against the item, arguing that it would violate Louisiana procurement laws and disrupt existing insurance coverage. He emphasized the importance of maintaining a competitive bidding process to ensure transparency and accountability in the use of public funds.

Conversely, representatives from Gallagher argued for the immediate approval of their services, claiming they could provide better coverage and significant cost savings compared to the current broker. They highlighted the potential for lower deductibles and higher coverage limits, which they asserted would benefit the school system financially.

Board members expressed a mix of support and skepticism regarding the proposed changes. Mr. Hidalgo raised concerns about the lack of proper vetting for such a significant financial decision, emphasizing the need for thorough review by the insurance committee. Other board members echoed this sentiment, stressing the importance of following established procedures to ensure fiscal responsibility.

In conclusion, the board's decision to defer the insurance brokerage item reflects a commitment to due diligence and careful consideration of the implications for the Lafayette Parish School System's financial health. The next steps will involve further discussions within the Insurance and Finance Committee to explore the best options for the district's insurance needs.