By Linda Conner Lambeck

WESTPORT — The Board of Education voted unanimously Monday to ask the town to foot half of a $926,000 shortfall in its employee health insurance costs in the fiscal year starting July 1.

The board plans to cover its half using a portion of its $1.371 million health reserve fund.

Supt. of Schools Thomas Scarice said while the growth in health insurance costs — from the budgeted 8 percent to 14 percent — was predicted and manageable, there are ripple effects that will affect the 2024-25 budget he presents to the board in another seven months.

“It is a significant challenge for us,” Scarice told the board during a special meeting held in the Staples High School cafeteria.

The school district transitioned to a new insurance plan a couple of years ago that was predicated on a low renewal rate in the last fiscal year and a renewal cap of 14 percent for the 2023-24 fiscal year.

Lucky for them.

The board’s $136.3 million approved operating budget factored in an 8 percent health insurance cost increase for the new fiscal year.

The increase, however, actually was more than 20 percent when renewal rates were announced this spring. The district is obligated to pay only 14 percent more. Not so, going into the future.

The actual increase will be the baseline as the board’s 2024-25 budget deliberations get underway this winter, likely proving to be problematic. 

Scarice said the board faces strong financial headwinds.

Board Chairwoman Lee Goldstein said when the district switched health insurance coverage it worked with the Board of Finance and Representative Town Meeting to recognize what might lie ahead in the interest of saving the town money short term.

“It is not a surprise at all,” Goldstein said.

In the audience while the bad financial news was discussed were several RTM members, who were there to listen to and comment on the next agenda item, redistricting.

Scarice said the fiscal impact on town finances has zero impact on the hundreds of employees who have the health coverage.

Freelance writer Linda Conner Lambeck, a reporter for more than four decades at the Connecticut Post and other Hearst publications, is a member of the Education Writers Association.