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McAllen ISD staff warn of $4.8 million health-insurance shortfall as trustees weigh 2%–4% pay scenarios
Summary
District presenters told trustees the employer share of employee health benefits could leave a roughly $4.8 million gap next year; trustees discussed raising the district contribution, other plan design changes and how proposed salary increases (2%–4%) interact with planning-period savings and fund constraints.
McAllen Independent School District staff told trustees at a March 4 budget workshop that the district faces an estimated $4.8 million shortfall to maintain current employer contributions for employee health insurance for the 2025–26 fiscal year.
The shortfall comes as staff presented three salary-increase scenarios — 2%, 3% and 4% — and modeled how those raises would affect fund-level budgets. “We are staring down at $4,800,000 that we have to cover,” Lorena Garcia, district finance staff, said during the presentation, describing options on both the employer and employee sides of coverage and potential procurement savings from a planned request for proposals for a third-party administrator and pharmacy benefit manager.
Why it matters: Employer health contributions are recurring costs that affect the general fund…
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