Insurance uncertainties, a topic at school board meeting.

Harrisburg school employees are facing health insurance increases in the next year that could cost educators more money for years to come.

The schools are covered by a Blue Cross Blue Shield health plan that has generated refunds each year that administrators bank and use to help reduce employees' health premium costs in the following year.

Superintendent Michael Gauch said the fund in May was at $409,000 and payed out $120 a month to each teacher enrolled in the health insurance plan, a total of $18,000 each month to supplement higher premium rates.

As it sits right now, the fund has $275,499 available to pay out for higher premiums but the claims for this last year were around $700,000 according to the superintendent.

The large amount of claims exceeded the premium this last year and Gauch is expecting insurance rates to increase again. But with the fund depleting and no refund coming in to offset the higher premiums next year, Gauch sees the only option is to place the higher rate cost onto the teachers.

"We will be putting together an insurance committee to discuss the options we have moving forward," Gauch told the Harrisburg Unit 3 School District Board members who met Tuesday at Harrisburg Middle School's media center.

One of the options mentioned to alleviate the issue is to switch insurance providers. But by leaving Blue Cross Blue Shield, the school district risks having to pay two months worth of premiums to break their contract, That comes close to $200,000.

In addition to the money the district would pay to leave Blue Cross, most insurance companies require new contracts to pay two months up front, which could cost another $200,000.

Other business conducted at the school board's Tuesday meeting included:

Approval by the board to sell general obligation school bonds for the purpose of altering and reconstructing school buildings and purchasing and installing equipment for fire prevention and safety.

"The money would see us through until we know more about the Qualified School Construction Bonds," Gauch said. "The process will take close to three months to finalize all the details."

The school board submitted the Qualified School Construction Bond application and should be notified, if accepted, by Feb. 4 or 5.

"I have been told by the state that Harrisburg is well positioned to receive those bonds," Gauch said.

The construction cost for the new high school gymnasium project still needs funding, and the $130,000 taken from the general obligation bonds would secure payment of costs until the construction bonds can be secured.