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McFarland business manager says new Group Health Cooperative contract trims projected budget gap
Summary
Business manager reported that a new four‑year health insurance agreement with Group Health Cooperative includes a 2% increase in year one and caps thereafter; staff said the savings help narrow projected deficits and free funds for wage adjustments.
The McFarland School District business manager told the board the district secured a four‑year insurance agreement that reduces near‑term budget pressure and gives the district room to consider salary adjustments.
Jeff, the district business manager, told the board the district completed a competitive process and won a four‑year contract with Group Health Cooperative. He said the plan carries a 2% rate increase in the first year (fiscal 2025–26) and subsequent year caps (annual rate maximums cited as up to 8.9% in later years). Jeff said that outcome will reduce projected deficit pressure and “allows us then to have these conversations in May about getting closer and moving ourselves more competitive with wages.”
Jeff reviewed other budget drivers: the district is operating under a recurring referendum revenue schedule, is monitoring state budget deliberations, and faces variable revenues such as interest and virtual school tuition. He told the board that open‑enrollment and resident enrollment trends remain important to revenue estimates; the district has adjusted class sections for 2025–26 to reflect recent enrollments and expects section‑level changes to affect average class sizes.
On post‑secondary course funding, high school principal Brett Jacobson and district staff explained that early college and Start College Now courses have different cost structures. Jeff and administrators said UW system courses are prorated from UW–Madison tuition, resulting typically in about $450 per three‑credit course to the district (tuition share plus books variable), while technical college courses under Start College Now can cost roughly $700 for three credits. Administrators said the high school gatekeeps outside enrollment to limit fiscal exposure.
Jeff warned the board that some budget changes are multi‑year: the district already absorbed a declining‑enrollment exemption that reduced 2025–26 revenue by about $300,000. He asked the board to continue giving staff multi‑year direction because decisions in 2025–26 affect 2026–27 and beyond.
Board members thanked Jeff and the employee relations committee for the collaborative work on benefits procurement and said they will discuss wage and salary proposals in May. The board took no separate vote on the insurance procurement at the meeting; staff reported the award and next steps for budgeting.
