Benefits advisory committee outlines options as Socorro ISD projects multimillion-dollar health fund shortfall

The Socorro Independent School District’s Employee Benefits Advisory Committee presented recommendations and financial data at a Sept. 8 meeting detailing options to address a projected health fund shortfall.

Tom Lane, a District 5 resident who spoke during the item, urged the board to publish a cost breakdown by plan so trustees can see differences among the district’s three offerings. Mario Carmona, director of human resources for benefits and risk management, presented financial figures showing projected revenues and expenditures for the 2025 plan year and described committee deliberations.

Carmona said the district and employees are projected to contribute about $44.5 million toward the health fund in 2025, while projected total costs are about $58.5 million, producing a projected net loss of roughly $14.12 million for the plan year. He said the district’s current employer contribution in the projection is about $555 per employee per month, with an additional unfunded liability of about $234 per employee per month (for a combined figure of about $789 per employee per month on average, as shown in the presentation).

The committee recommended a portfolio of possible strategies including: increasing employee contributions (the committee discussed an example increase of about $117 per employee per month); reducing plan options from three to two (retaining a base plan and a consumer-driven health plan with an HSA) and using plan-design changes and higher HSA employer contributions (committee discussed HSA employer contributions in scenarios up to $1,200 per employee per year); pharmacy management initiatives (including diabetes smart-edit, weight-loss utilization management and CVS weight-management supports); and a possible one-time infusion from the general fund to cover the immediate deficit while longer-term options are evaluated.

Sonia Vaez Morales and Irene Rojas, co-chairs of the advisory committee, said the committee balanced fiscal responsibility with employee well-being in its recommendations and stressed that rate-setting for future plan years would continue. Carmona noted committee meetings were held July 28, Aug. 6, Aug. 11 and Aug. 19 and included clerical, teachers and administrative staff.

Trustees asked about the possibility of offsetting the deficit with potential voter-authorized revenue in November (referred to in the discussion as "VADOR"); David Solis, chief financial officer, said the district’s adopted budget is balanced and that transferring an additional $9 million to $9.5 million from the general fund would draw down the district’s fund balance and is not currently available without reducing other priorities. He said the budget included about $7 million to address the deficit but not the larger sum discussed.

Board members and staff agreed further workshops are needed before any final decisions. Trustees emphasized the need to consider multi-year scenarios (incremental increases, one-time infusions, or plan-design changes) and requested that staff return with options laid out against possible funding levels so the board can weigh short-term and long-term paths.