Operations committee flags rising health‑care and special‑services costs ahead of budget season
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Summary
Board operations committee reported health‑care and special‑services cost drivers that could affect the 2026–27 budget, noting $15–$17 million in annual health‑care spending, a roughly $14 million special‑services program and the growing share of prescription costs tied to GLP‑1 drugs.
The Summit Board of Education’s operations committee told the full board on Dec. 16 that rising health‑care premiums, prescription cost trends and mounting special‑services needs are likely to be significant budget drivers in the 2026–27 budget cycle.
The committee summarized a presentation by benefits broker Arthur J. Gallagher that outlined national and local trends pushing premiums and prescription costs upward. The adviser told the committee that district health‑care and prescription spending represents roughly $15 million to $17 million annually and that novel, patent‑protected GLP‑1 drugs have rapidly emerged as a larger share of prescription costs; the adviser cited a 20% figure as an example of the share these drugs can represent in some portfolios.
Greg Margolis, head of special services, presented the district’s special‑services spending and trends. The committee recorded an approximate $14 million spend in special services in the current budget and said classification rates have remained low relative to nearby districts but that risk assessments were up about 38% this year and hospitalizations up about 60% — metrics the committee cited as drivers of increased costs and out‑of‑district placements.
Committee members said many cost pressures are outside local control, including changes in state law governing employer/employee health‑care contribution levels. The committee asked the business office and auditors to explore enhanced verification steps, such as random invoice confirmations with large external vendors, and requested a five‑year schedule of reserve‑eligible assets and capital spending to inform budget planning.
Board members asked whether the GLP‑1 prescription share cited by the adviser reflected district employee utilization or broader national trends; the committee said the advisers presented the figure as an industry trend and that the district has not confirmed an identical share among its own employees. The business office also described actions already taken to smooth cost volatility, including participation in a consortium health‑insurance program that aggregates multiple districts to gain buying power and stabilize premiums.
The committee unanimously recommended a $6,000 pre‑K tuition rate for the upcoming school year and recommended that the full board approve the fall SEF grants (which the board did later in the meeting). The operations committee also asked the chair to consult with the City CFO Tammy Baldwin on a proposed mailed budget summary to improve resident communications.