The School Board was briefed at its most recent meeting on an unexpected bill of more than $2 million from SchoolCare, a nonprofit organization that provides insurance benefits to school districts across NH.
“This was nothing any of the districts who subscribed to SchoolCare saw coming,” said Business Administrator Amity Small. She explained that the assessment came as a surprise to all participating districts.
Human Resources Director Lisa Drabik clarified that the bill is not based on claims specific to Londonderry. Instead, SchoolCare is issuing assessments to all member districts due to overall claims exceeding the funds collected.
“It’s just that we’re one of the biggest entities that they cover,” Drabik said, noting that Londonderry’s share of the assessment totals $2,016,454.24.
In a memo to the School Board, Superintendent Dan Black explained that the district has attended seminars and meetings to understand the situation. He noted that the assessment is both a statutory and contractual obligation under RSA 5-B and the district’s SchoolCare Membership Participation Agreement.
The full amount is due by Jan. 1, 2026. If unpaid, the district will incur a 0.5% monthly interest fee – approximately $10,080 per month, totaling $60,480 over six months. If payment is not made or a plan is not in place by May 1, claims will be held. Coverage will cease entirely if the bill is not paid by July 15.
Black outlined several options for the district:
- Re-do the auditor’s work, amend the DOE-25, and re-vote on the Unassigned Fund Balance. This would require a public hearing, but due to timing, it is no longer viable.
- Hold a hearing to expend funds from the Unassigned Fund Balance, which is designed for emergencies.
- Include the cost in the FY2027 default budget.
- Ask employees to contribute, though this would require union collaboration and is considered a sensitive option.
“In the interim, Attorney Graham is looking into the legalities of the assessment. It appears they are able to do so,” Black wrote.
Black recommended delaying any formal decisions until the district has a clearer picture of its year-end surplus and budget status. The board agreed to rule out the first option during the meeting, meaning the district will still return money to taxpayers to reduce the tax rate, as previously approved.
School Board Chair Bob Slater expressed concern over the situation, stating that elected officials he spoke with had not seen an auditor’s report or financial breakdown from SchoolCare.
“This is holding school districts hostage,” Slater said. “We have to pay it to ensure our employees have insurance.”