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Board hears warning of large insurance-premium spike that could raise local tax levy
Summary
The Hardyston Township Board of Education was told finance advisers project a potential 28% rise in health/insurance premiums; the board is seeking quotes and evaluating options to avoid a possible 4.5% tax-levy increase.
At its Nov. 11 meeting the Hardyston Township Board of Education’s finance committee reported a sharp projected increase in insurance costs that could affect the district’s tax levy.
Anthony Alfano, representing the finance committee, said the district’s expenditures this month were about $1,600,000 and that preliminary discussions with an insurance broker and Integrity Consulting Group indicated a possible 28% premium increase under the state plan. “So we have different scenarios. None of them are good,” Alfano said, adding the committee is “shopping around” for quotes to avoid passing the full cost to taxpayers.
The committee noted one illustration from a salesperson that showed the tax levy might rise about 4.5% to cover the projected premium increase. Board members described the numbers as not yet concrete; Alfano said the district is awaiting additional quotes and will report back when more information is available.
Why this matters: insurance costs are a major recurring expense for school districts; a sustained large increase could force choices about program cuts, staffing or local tax increases. The board did not act on changes to benefits or the levy at this meeting; members asked staff to gather alternatives and additional pricing.
Next steps: district officials said they will seek alternate quotes and return with recommendations before final budget decisions.
