Londonderry School Board grapples with surprise $2.02 million SchoolCare assessment; will recommend solution by December

Londonderry School Board members on Oct. 7 learned the district’s portion of a SchoolCare assessment totals $2,016,000 and heard staff outline payment options and timelines while warning of interest charges and potential loss of claims payments if the assessment is not paid.

SchoolCare, the assessable risk pool that provides health coverage for the district’s employees, notified participating members in late September that an assessment was required to restore reserves. SchoolCare’s actuarial analysis produced a $30,000,000 assessment for the pool; Londonderry’s share was calculated at 6.7 percent of that amount, producing the $2,016,000 invoice, staff said.

The assessment is written as a contractual and statutory obligation under the assessable-risk-pool provisions staff cited as RSA 5 (and related provisions). The board was told the district’s invoice is due Jan. 1, 2026; unpaid balances would incur a roughly 0.5 percent monthly interest charge and, if unpaid past July, SchoolCare may stop paying claims for the district’s employees.

"This was nothing any of the districts who subscribe to SchoolCare saw coming," Amity (staff member) said, summarizing staff outreach and describing the timing and size of the bill as a surprise. Lisa (staff member) added that the assessment is not based on Londonderry’s own claims experience but on the district’s share of covered lives and prior contributions to the pool: "It’s not because Londonderry had higher claims than anyone else. It’s just that we’re one of the biggest entities that they cover."

Staff presented four broad ways the district could respond: (1) resubmit the district’s financial reporting to the New Hampshire Department of Education (DOE) to treat the assessment as a special circumstance and recalculate the year’s fund-balance figures; (2) use reserves (unassigned fund balance) to pay part or all of the assessment; (3) build the cost into next year’s default budget; or (4) seek employee contributions toward the assessment. Staff stressed each option carries trade-offs, including interest costs on amounts not paid by Jan. 1 and limits on how much unassigned fund balance the district may retain.

Staff said the district currently planned to retain about $3,400,000 in unassigned fund balance; New Hampshire limits unassigned fund balance to roughly 5 percent of net assessment, which staff estimated at about $3.6–$3.7 million. Staff also noted that re-reporting financials to the DOE after the statutory filing deadlines could change the amount the district would return to taxpayers in December and would require expedited work with auditors and the DOE.

Board members described ongoing outreach to state officials and to SchoolCare leaders. Chair Robert Slater said he had contacted legislative leaders and the state insurance overseer and expected a multi‑party meeting to be scheduled in Concord in the coming week with SchoolCare and state officials.

Board members generally agreed not to reverse the board’s recent decision to return $1,360,000 to taxpayers for the December tax bill. "Personally, I'm not of the mindset that I want to go back on that," one member said. At the Oct. 7 meeting the board asked administration to study the options and return with a recommended course of action in December after additional budget and district-office cost information becomes available.

The district’s immediate financial exposure includes the invoice amount, the monthly interest if payment is delayed, and the operational risk if claims payments are halted. Staff warned that interest would accumulate quickly (they estimated more than $10,000 per month in interest if unpaid) and that more districts with low fund balance may face acute fiscal strain.

Board members who spoke described frustration at the timing and the communication process from SchoolCare and said they expected clearer, earlier notice from the pool. The superintendent (Dan) said the district would continue to pursue state‑level meetings and legal/auditor guidance and would bring back a formal recommendation by the December budget meetings.

The board did not take a formal binding vote on how to pay the assessment at the Oct. 7 meeting; members directed staff to investigate the options and report back. A meeting with SchoolCare and regulatory officials is expected; the board said it would share any substantive outcomes with the public once available.

Provenance: The SchoolCare assessment discussion began when Amity and Lisa summarized the SchoolCare notice and assessment calculations and concluded after board members described outreach to state officials and agreed to study options and return with a recommendation by December.