Bridgeport schools face health insurance funding gap

Three months into the new fiscal year, the Board of Education has a brand new budget gap to fill.

The school system has learned it is expected to absorb a $1.26 million gap between what the city says it must contribute to health insurance premiums for school employees and what school administrators factored into the 2009-10 fiscal year budget.

The final details of the $215.8 million operating budget were finally approved Monday by the school board.

The insurance-funding gap is the result of a difference between the $34 million contribution that school officials determined it should allot to an internal service fund it shares with the city, and the $35.26 million the city determined the district's contribution should be.

Robert Henry, chief of staff for the school district, has told the school board several times that the numbers provided by the city have changed and that school officials did not learn until recently what the full costs would be.

Robert Sherwood, the city's budget director, said the number has been the same since a forecast was made last March by the insurance carrier and the city budget was put to bed in July.

"No changes were made," he said. "All I know is we sent this to (the school district finance office) at the end of March saying this is what we have for your group's health care. Nothing was said in budget committee. You can't question it after it's adopted."

By city ordinance, Sherwood said the adopted amount cannot go up or down once the budget is set. He said school officials were advised of this in August.

School administrators, who first believed city estimates to be overstated, told the school board Monday they now agree with the city's numbers, but want time to settle the debt.

Traditionally, the school board pays its internal service debt commitment at the start of each fiscal year.

Henry told the board that school officials have asked city leadership if it can pay $34 million now and the remaining $1.26 later in the fiscal year when there is a chance to generate savings.

City officials could not be reached for comment.

An Oct. 22 memo from school Finance Director Julio Molleda to Superintendant of Schools John Ramos, however, suggests the city's answer is "no."

Molleda said the issue was discussed at a meeting last Wednesday with the city finance director, comptroller and benefits manager.

Molleda said school officials asked if the 2008-09 education budget surplus could be applied to the difference or if a six-month extension could be provided for the balance. Not only were both requests denied, Molleda wrote that it was indicated unless the board hands over the full $35.2 million insurance contribution shortly, the city will turn over the responsibility of managing the fund to the school board.