BILL NUMBER: S9345
SPONSOR: GALLIVAN
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to authorizing
the Holland central school district to establish an insurance reserve
fund
 
PURPOSE:
To authorize the Holland central school district to establish an insur-
ance reserve fund in order to make expenditures related to health-relat-
ed claims.
 
SUMMARY OF PROVISIONS:
Section one amends the general municipal law governing insurance reserve
funds to permit the Holland central school district to establish such
reserve funds.
Section 2. Establishes the effective date.
 
JUSTIFICATION:
In an effort to contain costs associated with increasing health insur-
ance premiums, which creates a significant strain on school budgets
annually, many school districts have opted to move to a self-insurance
model for health benefit programs as opposed to traditional premium
based programs. The Holland central school district has determined that
a self-insurance model is a lower cost method of delivering health
insurance to its employees, thereby lowering the district's budgetary
expenses. Nonetheless, the challenge with such a model is the unpredict-
ability of claims. Such fluctuations in claims, coupled with the exist-
ing statutory restrictions related to fund balances, necessitate this
authorization.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:

Statutes affected:
S9345: 6-n general municipal law, 6-n(2) general municipal law