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District forecasts $800K–$1M health‑insurance overrun; staff to propose transferring Fund‑70 interest to Fund‑10
Summary
District officials reported rising health‑insurance claims and estimated a budget gap of $800,000–$1,000,000; staff will propose a June board action to transfer interest earned in the working cash fund (Fund 70) — about $899,000 to date — into the education fund (Fund 10) to help cover the shortfall.
District administrators told the Minooka CCSD 201 board that health‑insurance claims this year have exceeded earlier estimates and that the district now projects an additional $800,000 to $1,000,000 in costs.
The presenter said the insurance costs are driven by high claims for medical services and prescription drugs. To offset the gap, staff proposed, as allowed by Illinois School Code, transferring the interest earned in the working cash fund (Fund 70) for the current fiscal year to the education fund (Fund 10) before June 30. Staff reported Fund 70 interest earned through the meeting date at roughly $899,000 and said that amount had been accounted for in the budget; moving the interest will not change the district’s overall deficit but will help maintain a target 25% Fund 10 balance.
Why it matters: the education fund pays for core district operations; an unplanned insurance shortfall of the size projected can pressure reserves or require mid‑year adjustments in programs or staffing unless covered. Staff told the board an insurance‑committee decision had already used some reserves and that the interest transfer is intended to preserve the education fund balance.
Next steps: district staff said they will place an action item on the June agenda to adopt a resolution transferring only current‑year interest from Fund 70 to Fund 10 (per state code), and will return with the formal resolution and exact transfer amount once year‑end figures are finalized.
