Giles County board agrees to cover up to 50% of mid‑year insurance premium increase

The Giles County Board of Education voted at its Sept. 4 meeting to supply up to 50% of the additional district cost caused by a mid‑year increase in employee insurance premiums.

The decision came after a lengthy discussion of rough cost estimates, potential impacts on federal special‑education funding and the district’s fund balance. Board members and staff described the estimate as preliminary and said final figures would be available after employee selections and payroll data are processed later in the week.

Board members said the district received rough figures indicating the premium increase would add in the low six figures for the remainder of the school year. Dr. Beard said staff had a “very rough estimate” and that numbers were still being finalized; finance staff Ms. Woodard told the board absorbing the increase could draw on the fund balance and might require a budget amendment depending on the board’s choice.

The board heard that the district’s general fund balance stood at roughly $6.75 million when assigned and anticipated expenditures were considered, and that absorbing the full premium increase would reduce that cushion. Dr. Beard and other staff warned that absorbing premiums now would raise the district’s recurring expenditures and therefore increase maintenance‑of‑effort obligations in future budgets, particularly for federally funded special‑education programs.

Board members discussed alternatives including covering 100%, 75%, 50% or allowing employees to absorb the increase. After discussion, a motion to provide up to 50% of the additional cost was made, seconded and approved. Several members disclosed that family members would benefit from the change; those disclosures were recorded during the meeting discussion.

Board members directed staff to prepare the necessary budget amendment and to return with exact dollar amounts once final employee plan selections and payroll data were available. Staff repeatedly cautioned that federal allocations (including IDEA and Title allocations) remain subject to adjustment and that any decision to absorb premiums could affect federal maintenance‑of‑effort requirements.

The board’s action was procedural: it set the percentage the district will absorb and authorized staff to move forward with the follow‑up budget work; it did not itself adopt the final budget amendment at that meeting.

What happened next: staff will finalize employee insurance elections and payroll data, prepare a budget amendment reflecting the board’s 50% decision, and submit that amendment for the required county/court approvals and formal adoption in a subsequent public meeting.