Francis Howell board approves insurance changes and pay increases amid state funding shortfalls

The Francis Howell R-III Board of Education voted May 21 to adopt administration-recommended changes to employee health benefits and approve pay increases for 2026-27 as leaders described a narrowing set of fiscal choices made more urgent by state funding shortfalls.

Deputy Superintendent for Finance and Operations Dr. Amy St. John told the board the districtwhich self-insures its plansis facing steep cost pressure and a shrinking fund balance. Her presentation mapped four plan options and a recommended compromise labeled Option 2.5, which preserves the districtpaid employee-only coverage while shifting more of dependent costs to employees.

“The employee-only premium will remain covered,” Dr. St. John said in the presentation. She showed the districtcurrently spends about $27 million on benefits and described projections that leave the district forecasting a multi-million-dollar deficit next year under several scenarios.

Board members acknowledged the recommendations were difficult. Vice President Grider drew attention to the districtwide tradeoffs, stressing the district pays 100% of individual employee coverage and that the largest claims were coming from spouse coverage. “We pay 100% of every employee individual plan,” Grider said. Several members urged prioritizing employees who insure children while also noting limited ways to close the budget gap.

After nearly three hours of presentation and Q&A on plan design, HSA timing and fund-balance implications, the board voted to accept the administrationrecommended Option 2.5 (which includes a maximum 8% increase to the employee-only premium base number and changes to deductible/out-of-pocket structure). The motion carried by voice vote with one recorded dissent.

Administrators said Option 2.5 reduces the immediate levy on the district while requiring many employee households with spouse coverage to pay a substantially higher monthly share: board discussion and a district chart showed an employeeplusspouse household could see roughly $400 more per month under the recommended structure; employeepluschild was far smaller, about $60 per month on the base plan.

The board also approved 2026-27 pay increases and several routine budget items and contracts during the same meeting, including purchases, roofing and paving contracts and a lease option for technology financing.

Why it mattered: Dr. St. John and other board members repeatedly framed the vote as choosing among unpalatable options. The district faces a projected two-year funding gap tied to lower-than-expected state revenue streams, which administration staff estimated could total roughly $9.3 million over two years compared with earlier state projections. Board members said they would continue to press for state-level solutions and to explore other local levers while attempting to protect classroom staffing.

What happens next: The insurance plan design changes take effect for the next plan year; administration will distribute detailed enrollment guidance and options to employees and provide additional counseling over the summer. The board will continue monthly monitoring of the self-insurance fund and present the final budget at the June 4 meeting.