The Columbia School Board’s Finance Committee voted 3-2 Monday to recommend that the full board approve a 29.9% increase in employee health care rates.
The proposal follows weeks of discussion about the potential hike, which is projected to generate nearly $8.4 million for Columbia Public Schools. Officials said the increase would help address a projected $2 million budget deficit.
The district last raised employee insurance premiums in 2019. Chief Financial Officer Heather McArthur attributed the gap to new contracts and the COVID-19 pandemic, among other factors.
Marsh McLennan Agency, the district’s benefits consultant, presented results from a district-wide employee survey conducted after last month’s finance meeting.
According to the survey, 69.2% of respondents are salaried employees, while 30.8% are workers paid hourly, receiving a paycheck once every two weeks.
A majority of respondents supported the recommendation: 81.1% said they preferred a 20% to 30% increase in monthly premiums while maintaining district coverage for employee-only premiums and requiring employees to contribute toward dependent coverage.
“There’s a recognition that costs have not increased in so many years,” committee member Ryan Euliss said. “There is probably more acceptance of a large increase than what you would normally expect because of that.”
McArthur said she was pleased with the survey’s participation. She reviewed recommendation guidelines, savings and renewal options, and the potential removal of GLP-1 drug coverage.
Scott James, a representative of Marsh McLennan, outlined renewal options to reduce the projected increase in employee insurance rates.
One proposal would exclude coverage for GLP-1 drugs, such as Ozempic and Wegovy, when prescribed solely for weight loss. James said that change could reduce the premium increase from 29.9% to 22%, saving more than $2 million.
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He noted that a growing number of districts are excluding GLP-1 medications when used only for weight loss. Coverage would remain in place for employees who require the drugs to treat conditions such as diabetes or other medically necessary diagnoses.
Board member Jeanne Snodgrass emphasized the importance of maintaining access.
“If it’s a medication that somebody needs, we want to make sure it’s going to be covered,” she said.
Financial update
The committee also reviewed assumptions for the 2026-27 budget and the district’s five-year financial model.
The administration highlighted key revenue factors, including a predicted increase in transportation revenues, reasoned by rising expenditure rates recorded in fiscal year 2024-25.
Proposed state budgets are under review in the House Budget Committee, with recommendations expected March 16-20. Several property tax reform bills are also advancing through the legislature.
On the expenditure side, the five-year model accounts for step increases for all employee groups, district-paid benefits, funding for the new Eagle Bluffs school in 2026-27 and projected increases in transportation costs.
Federal funding is expected to decline. The model does not account for future legislation that could reduce revenue, such as property tax changes or expanded charter school funding.
The committee will use these discussions to finalize assumptions guiding the district’s 2026-27 budget.
