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Board divided over earmarking roughly $6.8 million to cover employee insurance shortfall
Summary
A board member recommended adding $6,795,000 to assigned fund balance to cover a projected insurance shortfall; other members pushed to keep flexibility by using unassigned fund balance and staging transfers, and the board asked staff to add a note to the budget summary indicating intent.
A board member (S5) proposed adding $6,795,000 to the assigned fund balance to cover an expected shortfall in the district's self-insurance plan, saying the amount would make the budget transparent about how the board plans to pay increased medical and insurance costs.
"I would recommend that we add to line 35110 assigned fund balance, $6,795,000 to cover the projected shortfall of the insurance plan," the board member said. Other board members objected to immediately earmarking that amount because doing so would reduce the district’s unassigned reserve; they preferred leaving money unassigned and using budget amendments or staggered transfers during the year. Mister Sebastian recommended adding a note on the summary page stating the board's intent to use unassigned fund balance to supplement the insurance fund as needed; the board agreed to add that note and S5 said he will bring a formal motion at the next meeting.
