Superintendent warns 16.9% health insurance spike could cost district 'a little over $1,000,000'; state adequacy aid rises
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Summary
Superintendent Pamela told the Laconia School Board the district faces a 16.9% jump in health insurance costs (about $1 million) and an estimated $721,000 increase in state adequacy aid; the board was told city council approved using an expended fund balance to cover a large assessment, while $400,000 in reserve transfers await trustee approval.
The Laconia School District faces increased benefits costs next year, Superintendent Pamela told the school board on Nov. 18, noting a 16.9% rise in health insurance premiums and an 8% rise in dental premiums.
"The increase is 16.9% health insurance and an 8% increase in dental insurance," Pamela said, adding that the 16.9% "translates to a little over 1000000 dollars." The superintendent described the health insurance projection as preliminary and said the district would budget for 95% of the preliminary state adequacy increase while final figures are confirmed.
Pamela said preliminary state adequacy numbers increased by about $721,000 from this year; she described the figure as an estimate and said the state guarantees 95% of that amount. The district plans to budget using the 95% guaranteed share and will address the remainder after fiscal‑year closing numbers are finalized.
The superintendent also reported that she attended two city council meetings where councilors approved using an expended fund balance from last year to pay the bulk of a school assessment. Pamela said $400,000 earmarked for reserve accounts still requires approval from the trustee of trust funds.
Board members asked clarifying questions during the discussion and were advised that further budget work will proceed in coming weeks as the district incorporates the insurance increase and adequacy changes into its fiscal planning.
Next steps include budgeting for 95% of the preliminary adequacy increase and continuing to refine cost estimates for insurance and the district’s net operating needs.