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Portsmouth board hears update on SchoolCare assessment and potential budget implications
Summary
Superintendent updated the board on a statewide SchoolCare reserve shortfall and a $30 million assessment; Portsmouth was asked to pay a $1 million special assessment, the city offered about $250,000 now with the balance rolled into premiums, and SchoolCare's board rejected that counterproposal. The board said any final budget choice rests with City Council and noted ongoing talks with the NH secretary of state and alternative providers.
Superintendent Zach Mofflin briefed the Portsmouth School Board on March 10 about a statewide SchoolCare reserve shortfall that prompted a $30 million member assessment. "They asked Portsmouth to pay a one-time million-dollar special assessment," Mofflin said, explaining the assessment stems from unusually high medical claims in recent years.
Mofflin said the city proposed a counteroffer that would cover approximately $250,000 up front—representing Portsmouth’s uncovered claims—and suggested the remainder be paid over two years via premiums. "SchoolCare's board met and they did not ultimately accept that proposal," he said. Board members said behind-the-scenes conversations continue with SchoolCare, the city, and unions.
Board members and Mofflin described possible consequences if the assessment is not resolved: SchoolCare indicated it could stop paying claims after May 1 for communities that do not pay. The superintendent said the city is also consulting the New Hampshire secretary of state, who has oversight capability for risk pools, and is exploring alternative providers to avoid service interruption.
Board members emphasized that any decision to pay an assessment as part of the municipal budget would be made by the City Council, not the school board. "Ultimately the decision about whether or not to pay the assessment and how to structure it…would go to the city council," Mofflin said. The board did not vote on the matter at the meeting and treated the update as informational.
Key figures mentioned in the meeting packet: a $30 million SchoolCare assessment statewide, a $1,000,000 one-time assessment requested of Portsmouth, and a city-proposed immediate payment of about $250,000 with the balance incorporated into premiums over two years (the proposal was not accepted by SchoolCare's board).
