The board heard a detailed report on the district's health-insurance situation and projected budget implications on Nov. 10.

The business administrator said the district submitted claims data for July 2023 through June 2025 to its broker, who calculated a claims rate of 129% (meaning the insurer paid $1.29 for every $1.00 in premium collected). He explained that insurers seek target claims rates around 85% and that many districts with favorable claims metrics have left the state plan, making the remaining state pool less attractive to private carriers.

As a result, the administration reported it is likely the district will remain in the state plan and that the 2026 rates are increasing more than 30%, creating an approximately $364,000 gap for the upcoming fiscal year that the district must absorb. Administration warned that a similar increase in calendar 2027 could add substantially more pressure (they estimated a potential $2.6 million impact on the 202627 budget if two large increases combine).

The administration said it would continue to monitor markets, talk with benefits advisors and explore options that are feasible under collective bargaining constraints. The board discussed timing differences between calendar-year insurance renewals and the district's JulyJune fiscal-year budget, and members noted this will be a central topic for upcoming budget committee work.