Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Budget Benefits topic
No spam. Unsubscribe anytime.
Three Village reports $6 million-plus benefits increase as health costs surge
Summary
District administrators told the board that rising health insurance and retirement costs would raise employee-benefit spending by just over $6 million in the preliminary budget, exceeding the district's 2% tax-cap allowance.
Three Village Central School District officials told the board that rising health and retirement costs will push employee-benefit spending up by just over $6 million in the preliminary 2024-25 budget.
At a public meeting presentation, Dr. Scanlon said health insurance premiums are projected to increase 12.7% next year and that the district's portion of that increase is "a little over $5,000,000," calculated on current staffing. "Our health insurance is increasing next year at 12.7%...the increase to next year's a little over $5,000,000," he said.
The board was presented with additional line-item estimates: a projected Social Security (FICA) increase of roughly $350,000 tied to higher salaries and wage levels; combined smaller benefit categories (workers' compensation, life, unemployment, disability and dental) rising by about $38,000; and a retirement contribution increase (Teachers' Retirement System and Employees' Retirement System combined) estimated at about $578,000. Taken together, the presenter said, the total budget impact on benefits is "just over $6,000,000," based on current staffing.
The presenter noted limits on the district's revenue side: the state's calculation for the tax cap sets a preliminary maximum allowable levy increase at 2%, which he said equates to roughly $3.5 million for the district. "So before we've done anything else...there's already more in benefit costs than our tax levy would support," he said, indicating the gap the board must address when finalizing the budget.
On health-plan structure, the district's presenter said employees contribute a portion of premiums that varies by bargaining unit (generally between 14% and 18%), with teachers and administrators currently paying 18% of the premium. He explained that retiree coverage differs by Medicare eligibility: for Medicare-eligible retirees Medicare is primary and the district's supplement is at a lower rate, and the retiree contribution stays at the rate in effect when they retired. Monthly premium figures given in the presentation: $1,307 for individual coverage and $2,754 for family coverage (total premium amounts; employee share varies by unit).
The board discussed the retirement systems in detail. The presentation summarized Teachers' Retirement System (TRS) employer rate at about 10.11% for the current year with an estimated TRS rate for next year around 9.75% (a modest decline in percentage terms but with higher total dollar cost if salaries rise). The Employees' Retirement System (ERS) employer contribution rates were described as tiered by membership date; rates for ERS were listed as current ranges roughly 11.4% to 17.9% rising to an approximate range of 12.9% to 19.6% next year, producing an aggregate ERS contribution near 16% of applicable salaries under current staffing.
Board members and attendees asked for clarifications about reserves and program management. The presenter said the district is self-insured for unemployment and workers' compensation and maintains reserves for those risks; he said the unemployment reserve is about $150,000. He also said disability-costs were small: last fiscal year the district spent $28,547 on disability coverage for groups that contractually require it. On buybacks for employees who decline district coverage, he said the district used to offer a larger buyback but now maintains a very small program: roughly $1,000 each for about 22 employees who have identical outside coverage.
The presenter and board members emphasized that the numbers shown were based on current staffing and that any staffing changes (retirements, unfilled positions) would alter final budget figures. He said the district will present the tax-cap calculation and additional budget details at a future meeting and recommended that any modest state aid increases be used to bolster reserves rather than to add recurring spending.
Ending: The board did not take formal action on benefit lines at the meeting. Administrators said they will return with the tax-cap calculation, more detailed budget assumptions tied to staffing changes, and additional state-aid updates in upcoming budget workshops.
