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Catoosa County officials say rising employee health insurance — $19.4M, nearly 17% of budget — is squeezing pay increases
Summary
District leaders said state health benefit premiums have nearly doubled over four years; the district now pays about $19,400,000 annually for employee health insurance, which they said will represent nearly 17% of the budget and is using most local tax growth to offset increases.
District leaders at the 2026 State of the System warned that rising employee health insurance costs are constraining efforts to raise pay for staff.
"Health insurance now costs our district approximately $19,400,000 annually, and it will soon represent nearly 17% of our total budget," the Superintendent said, adding that nearly 100% of local tax growth is currently being used to offset those insurance increases. The Superintendent said they will travel to the State Capitol multiple times during the legislative session to advocate for long-term solutions so future funding growth can translate into employee pay.
The Director of Finance summarized steps the district has taken to strengthen its financial position — strategic budgeting, cost efficiencies and maximizing state funding opportunities — and described a multi-year initiative that delivered pay raises for several locally funded employee groups. Officials said the district is rebuilding reserves while maintaining a low-risk audit status.
District officials framed the insurance issue as a structural pressure on the budget that limits discretionary spending for compensation and other investments. No specific legislative proposals or state-level commitments were announced during the address.
