New Law Will Provide Insurance Reserve Fund For Fulton City School District
Assembly Minority Leader Will Barclay (R,C-Pulaski) today announced his legislation, A.08335, has been signed by Governor Kathy Hochul to establish an insurance reserve fund for the Fulton City School District. The district operates a fully self-funded health insurance program to offer more flexibility and control over health care services and rising health care costs. The reserve fund will ensure the financial health and stability of the Fulton City School District are strong, while reducing overall taxpayer burdens.
“Establishing an insurance reserve fund for the Fulton City School District is essential to ensure the district can properly support the needs of its dedicated workforce,” said Leader Barclay. “By taking this proactive step, we not only protect the district’s financial viability, but also strengthen its long-term planning, allowing the district to continue prioritizing quality education while responsibly managing risks.”
“We are grateful to Leader Barclay for carrying this legislation. Having the support from our state lawmakers in Albany to enable our school district to have greater flexibility with savings will help us, in the end, protect local taxpayers. Thank you to Leader Barclay for helping us to be proactive,” said Fulton City Schools Superintendent Brian Pulvino.
Self-funded insurance plans typically positively impact cash flow, as they are often exempt from premium taxes. Funds are only collected when a claim is made, and any unused funds can remain in the reserve account, accruing interest until it is needed. Savings from the self-funding insurance programs can also be used to fund student programs. The Fulton City School District covers insurance for approximately 500 employees and 150 retired employees.