www.montereycountynow.com SEPTEMBER 11-17, 2025 MONTEREY COUNTY WEEKLY 15 To dig their way out of a $12 million deficit back in December, the board members of the Municipalities, Colleges Schools Insurance Group (MCSIG) voted to assess member school districts and cities a total of $6.7 million by Jan. 17. The plan worked—by the end of the fiscal year in June, the deficit was $4.5 million—but since the assessment, eight member agencies have filed requests to withdraw from the joint powers authority. The withdrawal requests and ongoing deficit were top of mind for board members on Aug. 28, when they were faced with the decision of how much to raise health insurance premium rates for 2026. (Member agencies must file two formal requests before they leave the JPA, per MCSIG bylaws. Some may still remain.) An executive board subcommittee gave three options, ranging from a 15-percent increase to 17.4 percent. Taking into account variables including possible savings from a new cancer care program, restrictions on GLP-1 weight loss drugs and other factors, the subcommittee aimed for a three-year deficit recovery plan. The percentages are for “preferred” member districts and municipalities, if 80 percent or more of their employees are enrolled in a healthcare platform with access to telehealth and other services by Sept. 15. For those with less than 80-percent participation, they are subject to “standard” rates, which are 5-percent more. As of Aug. 28, only eight of 29 member agencies were close to meeting the 80-percent threshold. The MCSIG executive committee recommended a 15-percent raise to the full board, but not without some debate. The difference between 15 percent and 17.4 percent would be about $2.5 million annually, according to MCSIG’s consultants, but Kati Bassler of Salinas Union High School District worried it would ultimately hurt the JPA. “The risk of having groups leave, reducing the number of members, only increases the risk on those that stay,” she said. Yvonne Perez, chief business official for the Carmel Unified School District, argued in favor of a 17.4-percent raise, saying MCSIG needed to eliminate the deficit and prevent another assessment similar to what happened in December. Her district was assessed over $563,000. “I realize we are trying to balance between higher rates this one time and people jumping ship because we raised the rates too much, but the 15 percent doesn’t take care of the deficit fast enough,” Perez said. MCSIG President Steve McDougall, a union leader with the California Federation of Teachers and Salinas Valley Federation of Teachers, took issue with that argument, blaming school district management for not doing their part to speak up about the cost of healthcare in Monterey County or educate employees about enrolling in MCSIG’s programs. “Just make the employees pay. Management can afford it,” McDougall said, characterizing Perez’s argument. The board passed the 15-percent increase, with Perez and a representative from the Monterey County of Office of Education voting no. Under Pressure The MCSIG board votes for a premium increase against a backdrop of withdrawing members. By Pam Marino The board of MCSIG, a joint powers authority that includes 29 public entity members—mostly school districts—that pool health insurance. Eight member agencies have filed requests to withdraw. 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