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Board briefed on 2025–26 budget outlook; staff recommends stop-loss lock-in amid rising claims
Summary
Staff presented enrollment projections, possible teacher bonus funding scenarios, and health plan claims data that drove a board vote to approve locking the current stop-loss reinsurance terms while staff pursues options to reduce a proposed 12% renewal.
Finance staff and benefits consultants told the Franklin County school board on Feb. 10 that declining enrollment, statewide budget negotiations and rising employee health claims are shaping the division's budget outlook for 2025–26.
Administrators said the division is budgeting on an average daily membership (ADM) of 5,704 students and noted 1,008 homeschooled students in the county; staff estimated that homeschooling accounted for roughly $6.8 million in lost state revenue in the projection. The governor, House and Senate proposals differ on some items; staff said the House and Senate versions include a proposed $1,000 teacher bonus in each chamber, but the state's share for SOQ-funded positions would only cover part of the local cost. "The state contribution for that under the SOQ funded position is only 660,000," a finance presenter said.
On health insurance, benefits consultants reported that through December medical claims were up about 30% and pharmacy claims up about 25% compared with the prior year; the consultants recommended locking in current stop-loss pricing and exploring a change to Anthem's HealthKeepers network plus a modest increase to the high-deductible plan. "Current medical claims are up 30% from last year. Pharmacy claims are up 25%," said a benefits presenter during the discussion.
The board approved a motion to accept the stop-loss renewal recommendation (specific stop-loss at $125,000 and the existing aggregate stop-loss), after staff said the firm had secured an early quote that lowered the renewal from an earlier estimate. The board will receive updated claims through January and a March follow-up with final renewal numbers and options staff recommends to reduce premium increase exposure.
No final budget was adopted at this meeting; staff asked the board to accept scheduling adjustments and to expect further budget hearings and a presentation to the Board of Supervisors in mid-February as state action and final claims data arrive.
