School board agrees to absorb health premium rise; leaders say state funds and savings should cover teacher steps and bonuses

The Isle of Wight County School Board voted May 8 to adopt the 2025–26 health insurance program rates and to absorb a 22% increase in premiums rather than raising employees’ monthly contributions.

That decision followed public comment from teachers urging restored step increases and months of staff briefings showing a projected year-end surplus and additional state revenue that board leaders said can cover both the health plan shortfall and planned pay actions.

The issue drew several teachers into public comment. Amy Carr, a grade teacher at Windsor Elementary, said low pay is forcing experienced colleagues to leave: "You shouldn't want to lose me or other teachers just like me to neighboring school districts who are paying so much more." Reading interventionist Caitlin Britt told the board "What is a step? A step is a year of service," and said freezing steps harms retention. Reading intervention teacher Elizabeth Everett said step pay "should just be a part of your working budget."

Board discussion focused on timing and trade-offs between absorbing insurance cost increases and preserving pay priorities. Staff reported a 22% premium increase from the insurer and said the division's open enrollment materials were time sensitive and dependent on adoption of the new rates. Finance staff projected the health insurance fund would run a shortfall this fiscal year and that the division would likely draw on reserves to cover claims; the stop‑loss policy limit was described as $125,000 per employee per covered event.

School staff projected several offsetting items: roughly $3.0 million in year‑to‑date salary-and-benefit savings from vacancies and attrition; an expected $1.2 million in additional state revenue under the final state budget calculations; and an estimated $750,000 needed to extend a $1,000 bonus to all employees (the governor and General Assembly had provided a $1,000 payment for SOQ‑funded positions that requires no local match). Superintendent Dr. Kramer said the additional state funding “should be able to cover the school board's number 1 priority of a step increase, and that was estimated about 521,000.”

Board members also emphasized a follow‑up effort with county supervisors to study long‑term health‑plan design and to seek alignment between county and school division coverage. Members said county leaders have expressed willingness to work with the division on options to reduce premiums and improve benefits; board members stressed that such work will continue in the next budget cycle.

Motion and vote: Board member (Chair) Marsh moved to approve the 2025–26 health insurance program rates as presented. The motion passed with a roll call (Mr. Kolick voted no; Mr. Cunningham, Mr. Wooster and Chair Marsh voted yes). Staff warned that delaying approval would force the division to postpone open enrollment and delay printed benefit materials for employees.

The board scheduled continued budget work, including a special board meeting on May 29 to finalize the fiscal‑year 2026 budget, confirm the step increases and consider how to apply one‑time savings and recurring revenue without creating an unsustainable recurring commitment.