District reports self‑insurance shortfall; board told premium hikes expected

The Marshall Public School District finance report detailed a self‑insurance shortfall and previewed budget work to address it.

Sarah Brink, presenting the finance report, said the district’s self‑insurance plan had a 12‑month standard loss ratio of 116% and that “total medical claims and fees in 2025 were roughly 4.8 million and we had about roughly 4.1 million collected in premiums. So revenue after claims and administration expenses was a negative of about 680,000.” Brink said that was an improvement from a larger negative in 2024 and that the district implemented a premium increase in July 2025 and anticipates another significant premium increase in July 2026.

Brink also provided an investment update, reporting funds held in the Minnesota School District Liquid Fund and noting a reduction from the prior year; a specific dollar figure in the transcript was unclear. She said about $1.9 million is held in CDs with current interest rates in the range of about 3.86%–4.2% as CDs mature.

Board members asked whether the insurance shortfall would be reflected in the district’s year‑end budget. A board member noted the district would need to “pick that up at the end of the year.” Brink and others said the shortfall has been forecasted and that revised budget work will be presented in coming weeks.

Brink described other details: property insurance renewals have been moved to align with the fiscal year, recent storm and flood claims contributed to the district's loss history, a new payroll technician (Jen Clark) has joined the team, and staff are implementing the Minnesota paid leave program and preparing a revised fiscal 2026 budget.

The board did not take formal action specifically to change the budget during the meeting; Brink said she expects to present a revised budget for board review in the near term.