BILL NUMBER: S10261
SPONSOR: WEBB
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to permitting the
Vestal central school district to create an insurance reserve fund
 
PURPOSE:
The purpose of this legislation is to allow the Vestal Central School
District to establish an insurance reserve fund for the purpose of
making payments related to health-related claims.
 
SUMMARY OF PROVISIONS:
Section 1. Amends section 6-n of the General Municipal Law to add the
Vestal Central School District to the list of school districts within
the state authorized to establish an insurance reserve fund.
Section 2. Establishes the effective date
 
JUSTIFICATION:
In an effort to control the rising costs associated with insurance
premiums, many school districts are transitioning to a self-insured
health insurance model to provide coverage for their faculty and staff.
The Vestal Central School District has elected to provide coverage
through such a plan effective January 1, 2026.
Although the overall cost associated with a self-insured plan is lower
than a traditional health plan, there are greater cost fluctuations
resulting from the unpredictability of resulting health claims. With
school districts being prohibited from retaining more than four percent
of their budget in an unappropriated fund balance or reserve fund, this
significantly limits the Vestal Central School District's ability to
prepare for the variable expenses of the self-insured plan.
This bill would allow the school district to create an insurance reserve
and avoid fiscal hardship due to the variability of these types of
claims and lower their overall budgetary expenses.
 
LEGISLATIVE HISTORY:
None
 
FISCAL IMPLICATIONS:
To be determined
 
LOCAL FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect immediately.