The El Paso Independent School District's finance committee was told Jan. 13 that the district's self-funded workers' compensation program is stable but sits below actuarial recommendation levels.

Chief Financial Officer Maraghuirra opened the presentation and introduced Kyle Deglam, the district's director of risk management, who summarized a 63-page independent actuarial report and the district's safety efforts. Deglam said the fund holds about $6,200,000 and walked trustees through the actuary's funding estimates and the fund's incurred-but-not-reported exposures.

Why it matters: The actuarial analysis projects future claim costs that can take years to materialize — Deglam noted an individual claim can take up to two years to fully resolve — and trustees must weigh keeping larger reserves against using funds elsewhere in the district.

Deglam recounted that in 2001 the district was classified as a hazardous employer by the Texas Workers' Compensation Commission after claims rose to about $7,100,000; he said corrective action and stronger safety and claims-management practices removed that designation. "Our claims cost have declined and the fund remains stable and well managed," Deglam said. He described current practices including an accident prevention plan, an aggressive return-to-work program, root-cause analyses and quarterly reviews with the third-party administrator.

On funding levels, Deglam cited the actuary's recommendation range (about $3,400,000 to $4,000,000) and said the district currently is funding at roughly $3,200,000 per year. He and the CFO characterized that shortfall as a strategic choice to avoid overfunding the workers' compensation program and to reallocate dollars elsewhere in the district.

Trustee Querra asked for context on typical claim costs and where most claims fall on the cost spectrum. CFO Maraghuirra said claim costs vary widely and agreed to provide a board report containing a FY2025 analysis of claim ranges and types.

What comes next: Staff committed to return a detailed board report on average and range-of-costs per claim for FY2025 to give trustees more granular evidence for contribution decisions.