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East Central ISD board approves $1 million transfer to cover employee health-plan shortfall
Summary
Trustees approved a budget amendment moving $1 million from fund balance to cover last year's carryover shortfall and a projected shortfall in the district's employee health plan; staff said claims have been higher this year and the district will seek a benefits consultant.
The East Central ISD Board of Trustees voted to approve a budget amendment transferring $1,000,000 from the district fund balance to cover a shortfall in the district's employee health plan and to fund anticipated costs through the remainder of the plan year.
Why it matters: District staff told trustees the health plan, moved off TRS several years ago, is highly rated by employees for quality and access but has produced higher-than-expected claims this year. Trustees were asked to approve a one-time budget amendment to cover a previous-year shortfall of $647,000 and a projected deficit in the current plan year.
Officials said the district has been managing rising claims with targeted premium and employer-contribution adjustments but that this year's claims trend required a transfer from fund balance. Staff warned the board there is a possibility the district may need to return before the fiscal-year end if claims escalate further over the summer months.
The superintendent recommended the amendment and Trustee Miss Briesenhauer moved the motion; Trustee Mister Santos seconded. The motion was approved by voice vote.
Trustees also authorized staff to pursue a professional search for a health-care benefits consultant. That procurement action (an item to issue a request for qualifications) was introduced and a motion was made and seconded during the same meeting; the board instructed staff to bring consultant proposals back for trustee consideration after rank-ordering responses.
Next steps: Staff will conduct a deeper review of health-plan structures and bring consultant proposals and any required budget updates back to the board for further action if needed.
