Litchfield board approves FY2025–26 projected budget; benefits RFP yields savings passed to employees

The Litchfield Elementary School District Governing Board unanimously approved the district’s projected budget for fiscal year 2025–26, including updated estimates for a compensation study and a benefits package recommended by an employee‑led RFP committee.

CFO Vaughn told the board the presentation made “very few changes” from earlier budget discussions but updated the estimated cost to include four additional employees affected by the compensation study. The board voted to approve the projected budget as presented.

Why it matters: The budget and benefits decisions establish the district’s fiscal plan for next year and determine the health‑insurance and benefit structure offered to employees. The staff said the district will maintain its total contribution toward benefits and apply savings from vendor changes to reduce out‑of‑pocket costs for employees.

Key points from the benefits recommendation: The district’s benefits‑RFP committee — which included certified and classified staff, district administrators and finance and HR representatives — recommended remaining with ASBATE for medical and life coverage. ASBATE, described by staff as the district’s pooled insurance provider, submitted a renewal that staff said amounted to a 2.5% increase and preserved network continuity. The committee recommended switching dental and vision vendors to reduce employee cost while maintaining or improving coverage.

CFO Vaughn said the district structured the plans so that the high‑deductible health plan (HDHP) remains available without employee premium and the district will continue a $475.44 health‑savings‑account contribution for employees who elect the HDHP. At the same time ASBATE has made plan design changes that district staff said increased copays, deductibles and out‑of‑pocket maximums; ASBATE also informed districts the familiar “copay gold” grandfathered plan will no longer be offered after the 2025–26 plan year.

Board member questions and figures: Board Member Moran asked for participation counts on each plan; staff provided that 77 of 1,117 employees (about 7%) remain on the grandfathered copay‑gold plan. Staff also said 230 employees (about 21%) are eligible for district medical coverage but currently do not elect it; the district’s projected medical contribution for next year is $7,477 per enrolled employee. Staff also reported plan distribution roughly as: 7% copay gold, 33% classic gold, and 39% HDHP.

Other budget items: The presentation also covered transportation and food‑service pricing decisions. The food‑service increase for paid lunches was set using a percentage approach that resulted in a 7.9% increase to the lunch price; ancillary item increases were smaller than earlier flat‑penny proposals. Transportation proposals included aligning posted hours for student transporters (35 hours) and monitors (30 hours) to reflect typical hours actually worked and aid recruiting; administration described this as a “no‑cost” change based on current averages.

Action and vote: Mr. Owens moved to approve the projected budget; Miss Wallace seconded. The motion passed unanimously.

What’s next: Administration will implement the benefits changes, issue employee contracts on schedule and run a subsequent RFP for voluntary benefits next year. Staff also said they will implement additional measures to reduce claims and support employee health to contain future rate increases.