Old Bridge board points to steep health-benefit cost increases, schedules May 5 budget hearing

The Old Bridge Township School District board heard a finance committee briefing that flagged significant increases in employee health-care costs and set a public budget hearing for May 5 to review options.

A finance committee member said the district is facing “about 31.9 total premium increase for active education staff” this year and called out prescription drug costs as a major driver, saying the drug portion alone is being projected at about 58.6% higher because of specialty medications and increased usage. The committee member also said general medical inflation is running “about 9.5%” and that district reserves are depleted, prompting the need for early mitigation efforts.

Superintendent Dr. Sasso said the administration and board have been reviewing fiscal measures and thanked staff for work toward long-term sustainability, adding the district will present a more comprehensive budget overview at a May 5 public hearing. “I look forward to sharing additional details and a more comprehensive overview of this work at our May 5 budget hearing,” Dr. Sasso said during his report.

Board members noted recent plan changes intended to address rising prescription costs and expressed hope those changes will produce savings next year. One board member said the administration and business office are coordinating on mitigation strategies that began implementation in January. The finance committee emphasized the May 5 meeting as the forum for more detailed numbers and options, including potential impacts on staffing structures and health-plan design.

Next steps: the board will return on May 5 for a public budget hearing with detailed proposals and analyses; no formal budget adoption occurred at this meeting.