Finance update flags health-insurance costs and budget uncertainties as ADM trends upward
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Summary
Finance staff told the board it is halfway through the fiscal year with updated capital figures reflecting higher ADM; they warned of spiking health-insurance claims and noted roughly $1 million of prior one-time funding that will need restoration as budget planning continues.
The division's finance lead reported financial results through December and highlighted several items for the board to track as the budget process unfolds. The December capital update adjusted for higher fall Average Daily Membership (ADM) trends; if the higher ADM is maintained through the March 31 funding snapshot, administration estimated roughly $400,000 in additional state revenue for the current fiscal year.
Finance also flagged a recent spike in health insurance costs driven by increased enrollment in the division's self-insured plan and a couple months of high claims. The finance lead said the division will monitor claims closely and prefers to manage within the current budget rather than draw on county reserves except as a last resort.
The presenter reminded the board that last year’s budget used about $1,000,000 in one-time funding moved into the CIP to balance operating expenditures and that restoring that amount will be a factor in upcoming budget discussions. A revised budget calendar reflecting the county supervisors' timeline was provided to trustees; the presenter noted the governor's proposed budget included a 2% SOQ-funded compensation increase and that the division's composite index rose from 0.3015 to 0.3128, which increases the locality’s share of funding.
Human resources staff briefed the board on recruitment and retention efforts, describing a recruiting memo and in-person recruiting at colleges and a division recruiting push that frames 'retention is the new recruitment.' HR also reminded board members of events (Teacher & Support Staff of the Year dinner Jan. 22; Education Career Fair Feb. 7) and said the division had a favorable response to an intent-to-return survey so far.
Board members asked clarifying questions about how ADM changes affect revenue and whether health-insurance cost increases could be partially offset by increased enrollment revenue; finance said the potential $400,000 gain would not completely cover the insurance pressures if claims remain high. The board was advised that further budget details will be discussed during the budget retreat process.