Lafayette Parish officials warn insurance fund surplus is temporary; transfer from general fund masks shortfall

Lafayette Parish School System finance staff told the district’s finance committee on March 18 that a reported $4.9 million surplus in the district’s self‑funded group health plan reflects a prior transfer from the general fund and does not mean the plan is sustainably solvent.

The clarification came during a presentation on the insurance fund’s seven‑month and rolling 12‑month reports. Anthony Mouton, the district’s director of finance, said the district plans to budget a transfer of $6.6 million from the general fund for fiscal 2025–26 and that without prior transfers the fund would show a deficit.

Why it matters: The committee is setting budget assumptions for FY25–26. Whether the district must again use one‑time general‑fund money to shore up the insurance fund affects the board’s ability to pay for priorities…