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SISD finance staff say health fund faces $14M shortfall; district to convene employee committee and consider premium increases
Summary
CFO David Solis reported a multi‑million dollar health‑fund deficit and recommended a committee to propose plan design and premium changes. District leaders set a timeline for a committee process and expect a recommendation to the board by August.
Socorro ISD officials told the Board of Trustees on Wednesday that the district’s internal health fund shows a multi‑million dollar deficit and that administrators will convene an employee committee to recommend plan design changes and premium adjustments.
David Solis, the district’s chief financial officer, reported the health fund is showing a $14,000,000 deficit and that administration anticipates needing to transfer about $11,400,000 from the general fund by year end to cover the shortfall. Solis said the district spent about $11,000,000 more on health care costs than at the same time last year and that employer contributions decreased to $555 per month per employee, creating a revenue shortfall relative to claims costs.
Solis and Chief Human Resources Officer Selena Stiles described a two‑track approach. First, the district will form a health‑plan committee composed of employees across job classes to review options and provide input; administrators expect to start committee meetings in June and aim to present formal recommendations to the board by August. Stiles said the administration is projecting a $10,000,000 gap to close and will bring plan options through the committee process. The district said it will hold informational meetings for employees during the review.
Administrators also described the kinds of plan‑design changes they are considering. Solis and Stiles said the district may adjust premiums substantially, particularly for employee‑plus‑spouse and family tiers, and could require step‑therapy or additional clinical criteria before covering some high‑cost medications, including GLP‑1 drugs used for diabetes and weight loss. Solis said those structural changes are possible approaches but that the district will not make changes without committee input and detailed proposals.
Trustees asked for committee logistics; Stiles said the committee would include a cross‑section of employees (transportation, teachers and others) and would meet initially in June with follow‑ups in July if necessary. The board asked that materials presented to the committee be posted publicly; staff agreed to publish committee materials online.
No immediate premium or benefit changes were approved at the meeting. The administration said it will bring options to the health‑fund committee for deliberation and then return to the board with specific recommendations, including projected financial impacts and, if needed, recommended contribution or premium changes.
