Board reviews budget scenarios: premium increases, raise scenarios and OPEB funding choices

School division staff presented multiple budget scenarios to the Roanoke County School Board on Feb. 13 that combine health‑insurance premium choices with payroll and OPEB funding options and a possible one‑time state bonus for employees.

Premiums and plan options Susan Peterson, a district staff member, told trustees they were looking at a 12.4% premium increase under the current plan mix, but that alternative plan designs and a high‑deductible option paired with an HSA could lower the projected premium increase to about 9% under one scenario. Staff also showed options that would move enrollment between existing KeyCare 1000 and 2000 plans and a proposed KeyCare 3400 HDHP; each mix produces different employer and employee premium impacts.

Payroll and raises Staff modeled a stepped pay increase and a scale shift. The analysis showed that a single automatic step for eligible employees would cost about $607,970. Adding a 1.5% scale shift on top of that produced a combined cost of roughly $2.7 million—equivalent to a 3.1% average increase across payroll in staff modeling.

State bonus proposals Trustees were briefed on the House and Senate proposals to provide a $1,000 bonus to SOQ‑funded instructional and support positions. The House proposal would pay a bonus using next year’s staffing counts; the Senate proposal would pay a bonus in the current year using positions already filled. Staff calculated the district’s share of a universal $1,000 bonus would require local funds in the range shown in the materials and noted that taxes and withholding reduce a $1,000 gross bonus to a smaller net payment to employees.

OPEB (Other Post‑Employment Benefits) Staff presented actuarial funding options for the district’s OPEB trust. One recommended schedule—the staff’s preferred middle option—would pause the annual contribution for one year and then resume a funding schedule that reaches a partial funded level over a multi‑year horizon; staff said the chosen schedule affects the district’s long‑term balance sheet and future budget requirements.

Other budget items Staff also proposed small adjustments and line‑item reallocations in HR, facilities and special‑education staffing (for example, an additional transportation route manager and a CSA‑funded speech‑language position). The presentation flagged a requested one‑time general fund transfer to cover near‑term operating shortfalls in the health fund and recommended preserving some of the general‑fund resources to strengthen the health fund reserve.

Board next steps Trustees asked for additional insurer and network disruption analyses (HealthKeepers vs KeyCare) and said they would need more time to digest the insurance scenarios; staff proposed scheduling an extra work session before the March 13 final budget discussion. Staff also agreed to provide county revenue updates when the county completes its provisional revenue estimates.

Ending: Trustees did not adopt a final package at the session; staff will return with the requested modeling, county revenue figures and additional plan comparisons before the board’s March final budget discussion.