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Committee reviews 2025–26 budget assumptions; new PBM contract expected to save district money
Summary
Finance staff updated the committee on the 2025–26 budget assumptions, including a new pharmaceutical benefit manager agreement with Navitus projected to save the district about $1.1 million over three years and lower FY25–26 costs by $300,000–$400,000; staff also warned of a 15% increase in property and workers' compensation premiums.
The Waukesha School District Finance and Facilities Committee on April 7 received an update on assumptions for the 2025–26 budget, including changes to health-insurance contracting, reserve planning and insurance cost pressures.
District staff reported the consumer price index (CPI) this year came in at 2.95%, close to projections the district used in planning. Staff said the district renegotiated its pharmaceutical benefit manager (PBM) contract with Navitus and expects the agreement to save the district about $1.1 million over three years, with estimated savings of $300,000–$400,000 for fiscal year 2025–26 compared with the existing contract. Staff also said the new contract includes a free opt-out after one year with no buyout penalty.
Officials described a planning approach to health-insurance premiums that would aim for a near-flat result for employees, including a proposal to set aside $800,000 from reserves to cushion the plan year that begins in September. Staff cautioned that claims experience can vary and that in prior years the district did not always use the full amount set aside.
On property, liability and workers' compensation insurance, staff said the market is difficult and the district is estimating roughly a 15% increase in those line items for the coming year. Staff said the district historically runs a favorable mod for workers' compensation (about 0.75), but recent unusual claims have moved that score closer to 0.89 in the latest reporting.
The committee also reviewed the monthly budget report and was told the district is tracking at or above budget for many items and expects a healthy year-end fund balance; staff noted differences in capital and non-capital outlays compared with last year due to one-time federal ESSER spending in the prior year.
Committee members asked for follow-up updates; staff offered to provide packet updates or report at the full-board meeting when final figures are available.
