Health Reserve Fund for Scarsdale Schools Okayed by Governor Cuomo

Thanks to State Assemblywoman Amy Paulin the Scarsdale School District will again be permitted to maintain a health reserve fund. After considerable lobbying Paulin and State Senator Andrea Stewart- Cousins were able to get the bill through both legislative bodies in NYS and have it signed into law by Governor Andrew Cuomo.

The bill will allow the Scarsdale Union Free School District (the District) to maintain its insurance reserve fund for the self-insured health insurance plan the District provides for employees. The District established the reserve fund more than 25 years ago to mitigate the potential negative impact of large and unanticipated health claims in excess of budget.

Through the combination of self-insurance and maintaining a reserve fund, the District and its taxpayers have obtained substantial cost savings over the years, saving approximately $5.7M over the past five years.

The District had maintained the reserve fund without incident until a few years ago when its external auditors questioned its appropriateness. Without this legislation, the District would have been required to eliminate the reserve fund and explore options, including whether to continue self-insuring its health insurance.

"Knowing how important it was that the District be permitted to maintain this reserve fund and use it as a practical tool to stabilize costs, I am so pleased that we were able to get this legislation passed and signed," Paulin said. "The school board and the administration should be commended for its patience in working through a legislative solution to this issue. It took a little time but I think it was worth the wait. This is a win-win for the District and the taxpayers."