BILL NUMBER: S10396
SPONSOR: RYAN C
 
TITLE OF BILL: An act to amend the general municipal law, in relation
to permitting the Oswego city school district to create an insurance
reserve fund
 
PURPOSE:
To authorize the Oswego City School District to establish an insurance
reserve fund to make expenditures related to health-related claims.
 
SUMMARY OF PROVISIONS:
Section one amends the general municipal law governing insurance reserve
funds to permit the Oswego City 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 Oswego City School District has determined that a
self-insurance model is a lower cost method of delivering health insur-
ance 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:
TBD