Fond du Lac schools report budget gap; board hears plan to shore up self-funded health plan

The Fond du Lac School District reported on Sept. 22 that last fiscal year’s expenses are projected to exceed revenues by roughly $6.4 million, and district officials presented options to stabilize a newly self‑funded employee health plan.

District finance staff and benefits consultant Jay Scott of USI said the primary reason for the overage was the accounting requirement to record “incurred but not recognized” medical claims after the district moved from fully insured coverage to a self‑funded model Jan. 1, 2025. “We are projecting to have expenses exceed revenues to at at about 6,400,000.0 at this time,” Mr. Gerlach said during the budget update.

The nut of the workshop was employee benefits. The district began paying claims directly this year and retains premium dollars; Jay Scott told the board that the plan has already seen seven high‑cost claimants totaling roughly $1.7–1.8 million. “You had 7 people totaling about $1,800,000 in claims already this year,” Scott said, noting reinsurance reimbursements of about $560,000 that reduced the district’s exposure.

Why it matters: employee benefits are the district’s second‑largest budget item after wages. The finance presentation…