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Cannon County school budget workshop previews 2% raise and flags uncertain insurance spike that could add roughly $823,000
Summary
At a Cannon County school budget workshop finance staff showed 2% and 3% salary scenarios and said a potential 12% insurance premium increase—timing unknown—could add about $823,000 to next year's expenditures; the board asked staff to refine figures before the May 15 submission.
Julie, who led the budget presentation, opened a public budget workshop and walked board members through draft scenarios that model a 2% and 3% salary increase for certified and noncertified staff and alternative assumptions for insurance costs.
The presenter said staff modeled a 12% insurance premium increase on the high side and "we're showing, like, at the bottom of $823,000 increase," a figure the presenter characterized as a high-case estimate because final rates and plan choices are not yet available. Staff said the district's internal budget counts and a separate state report produced different estimates; finalized insurance rates usually arrive in May or June, they said.
Why it matters: recurring salary increases and higher insurance premiums affect the district's long-term fund balance. Staff suggested a healthy reserve target between $8.5 million and $9 million and urged caution before committing to multi-year increases that raise recurring obligations.
Key details discussed included: - Salary scenarios: staff provided the board with two scenarios (2% and 3%) and asked whether to proceed with a 2% increase now and consider further steps later. - Step scale: staff discussed keeping the existing 20-year step scale rather than extending to a 25-year scale immediately because of affordability concerns; staff said they will model alternatives showing year-by-year impacts. - Food service and other items: the draft includes a $25,000 transfer to food service but food-service insurance was not yet included; staff will provide that number. - Assistant principals: assistant principals are included under the current 2% scenario; suggested coach supplements were not added to the current draft and the board debated whether to phase them in or postpone until a full coaching pay scale can be developed. - Support staff and substitutes: the two support-staff sick days approved at the prior meeting were not reflected in the current draft and will be added; staff compared substitute pay with neighboring districts and noted the draft includes an increase for substitutes while remaining within budget lines.
Board members repeatedly emphasized sustainability. One board member said they "don't wanna be a part of something that we decide that is really, really great for a few years, but it damages the school system for years to come," urging caution on adding recurring costs without clear reserves.
Next steps: staff will refine insurance and payroll projections once the insurance rates are confirmed (typically May or June), add the two previously approved sick days for support staff, and model alternatives for pay-scale changes. The board set a follow-up budget workshop for two weeks from the meeting at 6 p.m. and was reminded the budget must be submitted by May 15.
The workshop closed with thanks to staff for the draft materials and tasks assigned for the next session.
