School district needs to plan ahead for insurance costs
Last updated 12/15/2006 at Noon
With respect to Ms. Ramsey’s front-page article concerning the Fallbrook Union High School meeting last November 27, I would like to add a few comments. The cost of future insurance benefits for retired members is a major financial consideration for most school districts in California. Few schools have planned for the escalating costs, and only due to new state requirements must school districts begin to indicate the costs on a rational basis. These premium costs will be a major financial drain on the district if prudent steps are not taken today. The school’s bond rating and financial security are interwoven on this most important issue.
We may be able to begin to save for the future increases by placing current revenue into trusts that will mitigate the costs in the future. One quick way of securing some funds would be if the board in its wisdom eliminates or reduces the insurance benefits for trustees. A savings of $50,000 to $60,000 a year may not seem like a huge amount, but over many years this adds up.