State of Vermont Colleges Face Deficits Because of Health Insurance Costs

The State of Vermont has a very progressive population in regards to politics that likes to lecture on policy, but can barely handle their own financial systems. Now their public colleges, funded by taxpayers, faces a massive health insurance premium increase along with declining enrollments.

The Vermont State Colleges System is bracing for another difficult budget season.

The chief culprit of this upcoming financial cycle’s woes is the same problem that has plagued the rest of state government: skyrocketing health insurance costs. The colleges have avoided large premium hikes in recent years, but VSCS chief financial officer Steve Wisloski told a subcommittee of trustees Monday that the system’s insurance broker had warned a double-digit increase was almost certainly coming.

“Our medical spend is about 20 million a year or so. So a 10% increase is going to be about $2 million more on the system level,” he said.

The system, meanwhile, is projecting its $182 million budget will run a $4.2 million operating deficit in the current fiscal year. That’s largely because fewer students enrolled than expected. Tuition and fees are projected to bring in $2 million less than what system leaders budgeted for; room and board is down another $1.5 million.

Source: VT Digger

 

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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