Salem school district slips back into the red

The district has had high health insurance costs for some time.

By D.A. WILKINSON

VINDICATOR SALEM BUREAU

SALEM — The Salem Board of Education is apparently heading back into the red.

Superintendent Stephen Larcomb said Tuesday the district has projected a greater than expected debt.

Larcomb had hoped to address part of the problem with a proposal to eliminate one art teacher’s position. Larcomb had said there were not enough students taking advanced art classes.

For the second meeting in a row, the board removed the proposal from consideration.

Voters approved a five-year levy for operating costs in May 2006. The levy will raise about $1.3 million a year for five years.

Larcomb said at the time he expected it would take two years before the district’s finances returned to normal. The district trimmed programs and closed outdated buildings to help save money.

But the district may face a debt of about $880,000 at the end of the 2007-08 year.

New district Treasurer Jill Rowe said the projection was divided evenly between other rising costs and unpaid medical insurance.

Insurance group

The district was part of a group of area school districts that worked together to provide health insurance. The group recently dissolved.

Larcomb said that the group apparently had for some time let the Salem district carry about $440,000 in medical bills for unclear reasons.

School officials said staff members pay for about 10 percent of health care costs.

Larcomb said the health insurance program is the “Cadillac” of policies.

The district also has a heavy use rate because of staffers who had major illnesses, such as cancer and heart attacks, that involved long-term care, the superintendent said.

The district has about 144 teachers and about 73 nonteaching staff.

The issue may come up again at next month’s meeting. It will be Larcomb’s last. He is leaving at the end of July to return to his extended family and a superintendent’s job in Marion, Ohio.

wilkinson@vindy.com