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Granite Falls superintendent warns of 36% insurance spike, shrinking fund balances
Summary
Superintendent Dr. Houston told the board the district faces a 36% increase in its insurance pool — roughly $278,000 — and that regional fund balances are trending downward, prompting plans for a legislative forum and further budget scrutiny.
Superintendent Dr. Houston told the Granite Falls School Board on May 27 that the district is tracking a significant increase in insurance costs and declining fund balances that could affect next year’s budget. “We are facing seeing a 36% increase…that is an additional cost of $278,000 to almost $279,000 to us,” Dr. Houston said, urging the board to consider the fiscal implications.
The warning came during the superintendent’s report, which also highlighted year-end student programming, senior exit interviews and library/levy planning ahead of expected architect work on a high-school library redesign. Dr. Houston said many districts in the region are reporting declining fund balances and that Granite Falls will continue to manage staffing and expenditures. “We’ll have reduced four administrators in the district and some classified staff members,” Dr. Houston said, noting reductions already made to keep the district fiscally stable.
Why it matters: a near-$278,000 unplanned cost for insurance is an ongoing expenditure the district must absorb; unlike state-directed costs, this increase is not reimbursed and will come from local funds the district had planned to use for programs and reserves. Dr. Houston said the trend of shrinking fund balances is widespread in the region and that bargaining groups monitor those balances when negotiating compensation.
Dr. Houston also announced a planned legislative forum on Oct. 22 to brief local legislators on tort claims, FMLA costs and other statutory drivers of district expenditures. “We can’t complain about a problem unless we’re doing something about it,” she said, describing the forum as an outreach vehicle to inform lawmakers about costs that reduce money for students.
Board members asked clarifying questions and thanked staff for monitoring costs and for the district’s outreach work. The superintendent’s presentation closed with reminders about upcoming graduation and senior events; no immediate budget vote followed, and staff will return with any required follow-up and budget options for the board to consider.
