Douglas Unified staff preview health-insurance RFP and warn of tight budget pressures
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Summary
District finance staff told the board the legislature’s work makes revenue uncertain but projected a likely 2% per-pupil increase; health insurance is the next major cost and the district plans an RFP, expecting to use roughly $350,000 of previously approved funds pending bids.
Douglas Unified School District officials told the governing board they are preparing a request for proposals for employee health insurance as part of early budget planning for the 2025–26 fiscal year. Finance director Mr. Soto said it is too soon to finalize revenue assumptions while the state legislature is active, but he expects the district will again receive a roughly 2% increase in the per-pupil allocation.
Soto said staffing and benefits account for an estimated 85%–90% of the district’s operating budget and that health insurance is one of the largest cost drivers. He told the board the district previously authorized using up to $500,000 from various funds to cover insurance costs and that current projections place the likely draw at about $350,000 while an RFP is completed. “My projection is that we’re probably not going to use that much. I can give you a ballpark of 350,000 maybe that we’re going to utilize instead of the 500,000,” Soto said.
Superintendent Samaniego told trustees site administrators are preparing budget-reduction proposals and must submit materials by Jan. 23; she emphasized that no formal decisions have been made and that any changes would be cautious so as not to harm student services. “We’re working hard, diligently, and my goal is to always be cautious of our financial status, our enrollment situation, but at the same token, being very aware of the responsibility that this district has to staff and to our students,” Samaniego said.
District staff said they plan to use an external consultant to support the insurance RFP and selection process; Gallagher was mentioned as assisting with procurement. Officials described the planned timeline: issue the RFP, accept bids, deliver a bid packet to the district, then review proposals line by line (copays, hospital stays, prescription coverage and employee cost) before making a recommendation to the board. If the bids are not ready by the March board meeting, Samaniego said administrators would schedule a special meeting to present results.
Board members asked whether changing carriers would reduce coverage or lower costs for employees. Soto said details will depend on proposals; the district will evaluate coverage levels, provider networks and employee costs when bids close. “We’ll go through that line by line for every company that bids, and then we’ll know,” Samaniego said.
There was no formal vote on the insurance procurement itself; the board heard the update and directed staff to proceed with the RFP and return with recommendations.
