Lodi School District hit with growing healthcare costs

Lodi School District administrators are tasked with finding $100,000 in the budget to cover growing costs for staff health care following health insurance renewal.

At the Lodi School Board's Monday meeting, board members were presented with a set of votes on renewing and updating heath care coverage for district staff.

According to a memo from District Business Manager Brent Richter, the district's current health care program came up for renewal with a 9.9 percent increase in costs. For staff covered by the district's health plan (48 individuals and 96 families) without increased support from the district, this would amount to a 35 to 40 percent increase in premiums.

Following discussion in the board's Personnel Committee, the board was presented a recommendation of increasing district contribution to staff health insurance by about $150,000, with $600 for a single plan and $1,200 for a family plan.

The April 2022 referendum included $50,000 in funding that could cover a third of the cost. And while the Personnel Committee came to a consensus of having the the district cover the cost, as board member H. Adam Steinberg pointed out in Monday's meeting, "it's up to Brent [Richter] and Vince [Breunig] to find the money though."

Personnel Committee Chair Scott Bilse added that, "the amount the staff was going to see monthly was significant."

Discussion of the district's insurance coverage drew public input at the Personnel Committee, which while uncommon for issues before the general board, is even less so in committee meetings.

District Administrator Vince Breunig summarized the decision, saying, "If you're going to make an investment, staff is where to make the investment."

The board then moved to increase health insurance contributions, passing on a unanimous vote (board member Sarah Raemisch was not present).

New board member Sarah Ripp asked Breunig bluntly, "Do we really have this?"

"Whether it is $100 or $100,000, 80 percent of that [budget] is staff, so at some point it is going to come from staff," said Breunig, "whether a position not being refilled, or positions being reduced, 80 percent will come from that...So we will have to continue to look at that."

At present, Breunig explained that the district was in the middle of the referendum period and that in the past year state funding shifts had been beneficial to the district, though it would be more difficult approaching the end of the referendum cycle.

The board then similarly voted, and approved, renewal of the district's health care insurance plan.

The board then voted to expand employee health insurance options with an alternative of high deductible plans with $2,500 contribution individual plan and a $5,000 family plan. The option would, ideally, allow those who enroll to pay less in premiums, while placing savings in a federally tax deductible health savings account.

The addition of the option to the district's plan was approved by a unanimous vote.