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A Budget Bump for Benefits in Sag Harbor

Wed, 01/27/2021 - 20:14

During a Sag Harbor School Board budget presentation on Monday, board members and administrators learned there will likely be a significant increase in employee benefits expenses during the 2021-22 school year. Costs are rising for retirement plans, Medicare reimbursements for current retirees, and compensation for employees who opt out of the district's health insurance plan, according to Jennifer Buscemi, the school business administrator.

The opt-out portion of the benefits budget has a projected $102,553 increase, up to $345,327. That is actually a measure of savings, Ms. Buscemi said, because if those employees did choose the district's health plan, Sag Harbor would be paying at least $1 million more than that for their benefits.

"A lot of the new hires are younger and are not buying into a plan. They are still covered by their families' plans," Ms. Buscemi said.

The actual districtwide cost for health insurance is expected to see an unusual decrease, by approximately $18,500, down to $5.44 million. The total benefits budget, which also includes dental insurance and paid sick days, is expected to rise by $413,202, up to $11.07 million.

Sag Harbor's salaries and benefits make up approximately 78 percent of its total budget. In the current school year, the budget is $44.33 million; an overall projection for 2021-22 has not been publicly discussed yet.

"We're still very early in the process, so there may be changes made along the way," Ms. Buscemi said. "The budget is very tight."

The district will have its next budget session on Feb. 8 at 6:30 p.m., when the board will review revenue and spending on technology, transportation, facilities, and administrative costs.

 


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