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Frederic School District board hears open‑enrollment shortfall and 18% health‑insurance cost spike
Summary
Board members were told open‑enrollment revenue fell short of projections by about $44,193 and staff reported the district’s health‑insurance costs could rise roughly 18% (about $153,000), prompting plans to solicit bids and delay some purchases to balance the budget.
The Frederic School District board on Tuesday received a financial update showing an open‑enrollment shortfall and a projected jump in employee health‑insurance costs that district staff said will require budget adjustments.
Kyle, reporting the invoices and receipts, said open‑enrollment incoming revenue was $393,478 compared with the estimate of roughly $404,702 (a difference of about $11,224) and that outgoing open‑enrollment payments were $1,035,759 versus an estimated $1,002,790; together the district faces an open‑enrollment deficit of about $44,193 compared with original projections. Kyle also listed recent vendor payments, including $9,213 for valve work on chillers and a $9,133 down payment to seal parking lots and playgrounds.
The board heard that district spending on employee health insurance so far this year is approximately $852,000 and that brokers have flagged a potential 18% premium increase — roughly an additional $153,000 on current costs if that projection holds. "We have time here," Kyle said, noting staff will solicit bids from other insurers and that the district pays 88% of premiums while employees pay 12%, so any increase would also affect staff contributions.
Board members discussed options to address the budget gap, including delaying a scheduled vehicle purchase planned for June and reallocating that funding to cover the open‑enrollment shortfall. The board did not record any additional formal action on these items in the public portion of the transcript.
The district will bring back more detailed budget options after staff receive competitive insurance bids and firm final premium numbers later this summer.
