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Lacey Township board urges state relief as health‑benefit costs strain district budget
Summary
The Lacey Township Board of Education passed a resolution calling on the governor and Legislature to provide short‑term relief and long‑term reform for rapidly rising school health‑benefit costs, while trustees and residents debated proposed raises, layoffs and budgetary tradeoffs.
The Lacey Township Board of Education on May 22 approved a resolution asking the governor and state lawmakers for immediate relief from sharply rising school health‑benefit costs and urged comprehensive reforms to how benefits are delivered.
The resolution, which the board voted to forward to the governor and legislative leaders, says double‑digit premium increases have placed “tremendous strain on district budgets and local taxpayers” and cites a 31.9% premium increase that took effect in January 2026 and a near‑74% increase over five years. President Claus framed the vote by telling the board the single greatest pressure on the district’s budget “is the rising cost of health care and the impact of state‑mandated benefit laws,” and explained the district’s shift from Chapter 78 premium‑sharing rules to Chapter 44 salary‑based contribution caps that limit local bargaining.
Why it matters: Board members said the legal structure locks in contribution levels until late 2027 and prevents negotiators from sharing premium increases with employees, forcing the district to absorb much larger employer costs. The board reported recent premium spikes approaching 30% and said that, absent state action, the district faces difficult choices between salary increases and staffing or program cuts.
President Claus summarized the board’s position: "While Chapter 44 was intended to help staff take home more pay, it created a new rigid trap for the district," and the board will forward the resolution to the governor and legislative leaders to seek both immediate and long‑term solutions.
Board offers and bargaining: Claus said the district has offered raises of 2% for 2025–26 and 3.5% for 2026–27 in negotiations with the teachers’ association but that the health‑benefit problem constrains what the district can afford. The board discussed pursuing cost‑reduction strategies and asked the public to contact state legislators in support of relief measures.
What the board did: The board placed the resolution on the agenda as item A27 and approved it by roll call.
