Cave Creek Unified approves 2025-26 medical benefits and 1% base pay increase for staff

Cave Creek Unified School District governing board President Greer Busby and members approved the district's 2025-26 employee medical benefit package and a 1.0% increase to the base salary for certified and classified staff during the board's April 8 business meeting.

Why it matters: The vote maintains district-paid health coverage for employees while the district absorbs a proposed premium increase. The IBN team presented a separate but related compensation proposal aimed at making modest, ongoing increases to employee pay and continuing one-time state funding distributions that had been phased in after the 2023 allocation.

Dr. Hendrickson, the district presenter on medical benefits, told the board the district's major carriers include the district medical administrator (referred to in the presentation as "Asbates" through "Meritanes"), Delta Dental for dental coverage historically, Colonial Life for supplemental benefits and VSP for vision. He said the district's overall monthly premium for many employees rose from roughly $618 to $660 this year, a 6.7% increase that the district plans to absorb rather than pass entirely to employees. "We were able to determine that that was an increased cost that we could absorb as a district," he said.

Hendrickson said roughly 319 employees participate in the district benefit plans and estimated the annual district spend on insurance at about $2.4 million, with the current year's premium increase adding roughly $170,000 to $180,000 in cost. He described plan design adjustments the IBN/benefits team recommended to preserve value for staff while containing long-term cost. Those included keeping a grandfathered silver plan for a limited group, moving to a higher-value dental option through Unum (sister company to Colonial Life), and a proposed change to a high-deductible plan that would increase the district HSA contribution for employees who select that option. "So we make it a a contribution of $300 to their HSA account this year," Hendrickson said, describing the district's planned HSA contribution for one of the high-deductible options.

Hendrickson also emphasized utilization and education strategies (Teladoc, early-care alternatives to ER use) as levers to keep premiums lower. He said the district reviews claims monthly with its administrator and looks for opportunities to consolidate vendor platforms to simplify enrollment and billing for employees.

Separately, the district's interest-based negotiation (IBN) team — presented to the board by Dr. Hendrickson and Dr. Hendrickson's IBN colleagues — recommended a 1.0% increase to base pay for both certified and classified staff. The team described its process of survey work, multi-day meetings and weighing options for sustainability, legality and equity. The package presented to the board included: - a 1.0% increase to base salary for certified and classified staff (ongoing), - distribution in the fall of the final installment of one-time state funds previously allocated in 2023 (the team said $366,000 was being distributed over a three-year cycle to employees who were on staff in 2022-23), - continuation of existing stipends (national board, doctorate, longevity) and a review of club and athletic stipends, course/column movement amounts, and other working-condition changes such as PLC scheduling.

Board members asked clarifying questions about budgeting and the difference between a 1.0% increase to base pay versus a one-time 1.0% stipend; Dr. Hendrickson said a base increase is an ongoing commitment that compounds with future raises and affects retirement calculations, while a one-time stipend does not. The board also discussed proposed changes to PLC scheduling and the possibility of quarterly flipped instructional days to permit longer blocks of staff development.

The board voted by voice to approve the 2025-26 medical benefits as presented and separately approved the IBN recommendation to add 1.0% to the base for certified and classified staff. The board record shows no opposed votes in either voice vote.

What comes next: Dr. Hendrickson said the medical plan changes and the pay adjustment will come forward as formal action items for implementation and open enrollment preparations. The IBN team also committed to reconvening in December to review realized savings from school consolidation and to determine whether any additional one-time or base compensation can be provided.

Votes at a glance: 6.1 Approval of medical benefits for 2025-26 ' Motion to approve as presented; outcome: approved (voice vote, no opposed recorded). 6.2 Approval of 1.0% increase to base pay for certified and classified staff for 2025-26 ' Motion to approve as presented; outcome: approved (voice vote, no opposed recorded).