Flagler County, FL — The Flagler County School Board held a packed workshop on Tuesday, February 10, 2026, tackling a wide range of topics from disaster preparedness grants and school psychologist shortages to a nearly $1 million spend on weight-loss drugs. But the dominant conversation of the four-and-a-half-hour session centered on the district’s escalating health insurance costs and whether to pursue non-traditional strategies to bring them under control.
Board members Lauren Ramirez, Janie Ruddy, Mr. Furry, and Christy Chong were present, along with Superintendent Moore, for the 3 p.m. workshop. The agenda was approved unanimously after being rearranged to prioritize certain items and reserve the bulk of the session for an insurance discussion. No members of the public spoke during either public comment period.
FEMA Hazard Mitigation Resolution
The meeting opened with a presentation on a local mitigation strategy resolution that would allow Flagler County Schools to remain eligible for FEMA hazard mitigation grant funding. The resolution is part of a multi-year jurisdictional plan that the county updates every five years, and every jurisdiction wishing to participate must adopt the plan. The district has previously used these grants for generator repairs at Rymfire and Bunnell elementary schools and window upgrades at Wadsworth. Most grants under the program require a 75-25 local match, though certain larger events, like COVID-19, carried a more favorable 90-10 match. The item is set to move forward for a future board vote.
Finance: School Psychologist Shortage and Outsourcing Costs
During the finance portion of the agenda, the board examined purchase orders exceeding $10,000, with particular attention to roughly $230,000 being paid to Stepping Stones, a contracted company that provides school psychologist services. Board members asked why the district could not hire its own school psychologists for less. Dr. O’Brien explained that the positions have been continuously posted but are difficult to fill because school psychologists are part of the bargaining unit, and the salary is not competitive with what contracted companies can offer. “Oftentimes, psychologists can work at a higher hourly rate for a contracted company and also have a much more flexible schedule,” Dr. O’Brien said.
Board member Ruddy asked whether the positions could be removed from the bargaining unit, similar to what the district did with nursing positions. Staff indicated that school psychologists are classified as certified instructional staff and said that Mr. Ouellette would outline the steps needed to consider such a change. The district has also added a differentiated pay stipend within the bargaining contract to try to make the role more competitive. Board members requested data on the number of service hours and students being served by the $230,000 expenditure, and staff agreed to provide that information.
The board also learned that a $2 million payment to NEFAC risk management covers workers’ compensation and property insurance, pooled with other NEFEC districts for better pricing. Staff clarified that this pooling arrangement does not currently extend to health insurance.
Workforce Grant Funds Returned to the State
A discussion about the Workforce Capitalization Grant revealed that the district returned approximately $300,000 in unspent state grant funds. The two-year grant, running from 2023 to 2025, was targeted at agriculture and carpentry programs. The district spent about 50% of the total funds, or roughly $216,000 of the initial allocation, purchasing items such as a Ford F-250 truck, trailers, and materials for agriculture and carpentry classes.
Mr. Reeves explained that staff turnover, including the departure of the district’s CTE specialist to Seminole County, contributed to the inability to spend the money. Procedural issues with vendors and purchasing rules also created delays. Board members expressed frustration. “The number one thing we hear is that we need more classroom-to-careers programs. We’re out there asking for this money,” one board member said. “This doesn’t bode well if we’ve asked for money in the past and couldn’t spend it.”
The board learned the district did not apply for the grant again this year, as the new CTE specialist had only come on board in March, and the application was due in May. Board members urged staff to be more proactive and collaborative in future grant cycles.
Internal Accounts Audit
The district’s annual audit of internal school accounts for the year ending June 30, 2025, showed some findings but also improvement from the previous year. Finance staff noted significant turnover among school bookkeepers as a contributing factor, and said many of the bookkeepers associated with the findings were no longer in those positions. The finance department itself experienced 100% staff turnover during the year and had to rebuild. Training for new bookkeepers has improved, with experienced staff members now providing hands-on support.
A board member raised the idea of sharing bookkeeper positions between schools to save costs. Staff responded that bookkeepers at schools already handle multiple duties beyond accounting, including front desk coverage and car rider lines. “The biggest complaint we have had from bookkeepers is they don’t have enough time during the day to do their job,” a finance representative said.
Telecommunications Contract: New Internet Provider Recommended
The board heard a recommendation to award a telecommunications contract to United Data Technologies (UDT) for internet and firewall services, replacing the current provider, ENA Services LLC, whose agreement expires June 30, 2026. UDT was not the lowest bidder among the four submissions received, but the evaluation committee selected them based on a more resilient network design featuring two separate five-gigabit internet circuits routed through different geographic locations — one through Atlanta and one through Miami.
Under the current contract, the district pays $670 per month for 10-gigabyte service. The proposed UDT contract would cost $1,520 per month for two five-gigabit circuits with basic firewall service included. However, both contracts are subject to an 80% E-Rate federal discount. The district’s net cost under the current provider is $24,150 per year, while the proposed contract would cost $54,720 per year after the discount. Staff emphasized that the new contract includes firewall services that were previously billed separately at $2,000 per month with no E-Rate discount, representing an overall improvement. The item will come before the board for approval on February 24.
CareerSource Office Moving to Carver Center
A memorandum of understanding with CareerSource Brevard, Flagler, and Volusia was presented, under which CareerSource would relocate to the Carver Center after closing its Palm Coast office. The district would provide the space at no charge. In return, CareerSource committed to providing career assessment, job placement, workforce readiness workshops, social media promotion of Flagler Technical College and district events, internship program expansion, and employer engagement.
Board members questioned the arrangement, noting that CareerSource recently spent $80,000 updating a Daytona office while closing its location in the county with the highest unemployment rate among the three it serves. “They’re going to close the office in the county that has the highest unemployment rate of the three counties that they serve,” one board member observed. A CareerSource representative explained that their budget had been cut about 30% over the past five years and that the organization is shifting to a “talent hub” model of going where students are.
Board members requested that the MOU include specific metrics, including a dollar amount for the in-kind marketing services, goals for internship expansion, and a set number of site visits to FTC, FPC, and Matanzas. CareerSource agreed to incorporate those items. The item will come back to the board with revisions.
Auditorium Director Job Description
The board reviewed a redlined job description for the Flagler Auditorium director position, which now includes responsibilities for K-12 visual and performing arts programming. The current director, Ms. Fulmer, is retiring with a vacancy date of July 31. Board members praised Ms. Fulmer’s work and expressed enthusiasm about the K-12 component, while also raising concerns about finding a single candidate who combines performing arts expertise with business management skills. One board member suggested adding flexibility for candidates to work toward certain qualifications, rather than requiring all three skill sets up front. The position is expected to be posted pending board approval at the February 24 meeting.
Fleet Health Trust: Board Members Remain Skeptical
A significant portion of the workshop was devoted to discussing Fleet, a health care trust that works on behalf of school districts through the Florida Association of District School Superintendents. The board has been evaluating whether to join Fleet’s program, which could offer pooled purchasing power for pharmacy benefits and, eventually, risk sharing with other participating districts.
Superintendent Moore emphasized that Fleet is a fiduciary organization, not an insurance company, and that the district would remain self-insured. “These are some alternative, non-traditional decisions, but we’re now at a moment where we need to make some non-traditional decisions, or else we’re going to be in a situation where our health insurance is going to be even more unaffordable,” Moore said.
However, several board members expressed reservations. The projected initial savings were described as approximately $133,000, with the district’s consulting fee increasing from $115,000 with the current broker, Brown and Brown, to $357,000 for Fleet membership. Board member Furry voiced concern about the risk of being an early adopter with only nine counties currently participating. “We might feel short-term pain by getting in too early,” he said, adding that much of Fleet’s presented savings appeared to come from helping districts transition to self-insurance — something Flagler has already done. “I really see that that’s probably why only a handful of districts have entered at this stage.”
Another board member said she needed “objective data” and that Fleet’s presentations have “lacked substance.” She added, “Every time they’ve come, I’ll be honest, it’s lacked substance. I need actionable information.”
The board agreed to invite Fleet representatives to a future business meeting, with board members submitting their specific questions in advance. A vote on whether to move forward with Fleet is scheduled for February 24.
Health Insurance: The Central Crisis
The most extensive discussion of the workshop focused on the district’s self-funded health insurance plan, presented by the district’s consultant from Brown and Brown. The data painted a challenging picture. Medical claims made up 67% of the district’s insurance costs in 2024-25, and pharmacy claims spiked 30% in 2024, driven largely by GLP-1 medications used for weight loss. With claims through December, the district’s actuary projected the plan would end 12.3% over budget, amounting to a $1.6 million shortfall. Three individual members had claims exceeding $100,000.
Staff warned that if the trend continues, the general fund would need to supplement the insurance fund, directly affecting money available for employee raises and bonuses. “We don’t want to have to bring dollars out of our general fund to cover this because then that directly impacts our employees,” Superintendent Moore said.
Looking ahead to the 2026-27 plan year, the district faces a projected 22% increase. If GLP-1 weight-loss prescriptions are removed from the calculation, the increase drops to 17%.
GLP-1 Carve-Out Proposal. The consultant proposed carving GLP-1 weight-loss medications out of the pharmacy plan and directing employees to purchase them through direct-to-consumer programs at a fraction of the cost. The district had 710 GLP-1 prescriptions representing $958,000 in spending. Direct-to-consumer pricing for Wegovy runs about $349, and Zepbound runs $299 to $449, compared to over $1,000 per prescription through the insurance plan. Under the proposed model, employees would still pay $35 out of pocket, with the district subsidizing the remainder through an electronic payment card funded by the district. If utilization stayed the same, the cost would drop from nearly $1 million to approximately $223,000. Staff emphasized that no benefits would be taken away from employees.
Samaritan Fund Program. The consultant also introduced the Samaritan Fund program, a charitable initiative that places employees with serious medical conditions on individual health plans funded entirely by charitable donations. Employees accepted into the program would pay no premiums, deductibles, or copays. The district would pay $55,000 per person accepted, compared to projected claims that could exceed $100,000 or more per individual. Looking at historical claims data, the consultant estimated the district could have saved $2.1 million if 18 high-cost claimants had been enrolled. Board members asked detailed questions about the program’s solvency and structure. “It sounds too good to be true, really,” one board member said. The consultant called it “one of the most exciting things that I’ve been able to bring” to clients.
Pharmacy Benefit Manager Changes. Brown and Brown reported that the district is exploring alternative pharmacy benefit managers, including MedImpact, the largest independent PBM using transparent pass-through pricing, and Rightway, which partners with Mark Cuban’s Cost Plus Pharmacy. Current guaranteed savings stand at 8%, or approximately $290,000, with potential for greater savings depending on additional programs. These changes would be brought to the insurance committee and then the board for review.
Tiered Network and Transparency Data. Perhaps the most forward-looking proposal involved using newly available hospital transparency data to create a tiered benefit structure. The consultant presented data showing that Florida is the most expensive state in the country for commercial medical care, with hospitals charging an average of 380% of Medicare rates while the break-even cost is only 137%. Using a free public tool called Sage Transparency 2.0, the district can now see the actual pricing differences between hospitals.
Under the proposed model, employees who use hospitals and facilities that agree to fair, transparent pricing would receive “Tier 1” benefits with no deductible, a $2,000 out-of-pocket maximum, and low copays — $20 for office visits, $700 for inpatient stays, and $250 for emergency rooms. Employees who choose more expensive facilities would fall under “Tier 2,” with a $3,000 deductible, 30% coinsurance, and an $8,000 out-of-pocket maximum. Emergency care would always be treated as Tier 1.
If the district achieved a 35% savings on facility claims through the tiered approach, it could see a 4.9% decrease from current funding rates rather than a 22% increase. The consultant also suggested that the district could directly contract with hospitals at negotiated rates, bypassing the inflated pricing of traditional insurance networks. “If we know that something is the same test, the same quality provider reading that scan, and it costs $1,000 at Hospital A and $10,000 at Hospital B, why can’t we have that information to better inform our people?” the consultant said.
The proposals have not yet been presented to the district’s insurance committee. Board members and staff made clear that the options are the beginning of a longer process. “We ask that you, as a board, take this information, pick it apart, and bring some more suggestions,” Superintendent Moore said. “We ask that the insurance committee do the same. We ask that people out in the community, they look at it and give us feedback on options that maybe we haven’t seen.”
Other Business and Legislative Update
The board also discussed a request for proposals for health care consulting services. The current agreement with Brown and Brown has no remaining renewal options, prompting a new RFP process. Staff noted that this process is separate from any decision about Fleet and that the scope of the RFP could be modified if the board ultimately goes in a different direction. The item will come before the board for approval on February 24.
The board reviewed a proportionate share mitigation agreement for Legacy Point Cottages, a 22-unit housing project near Flagler Beach expected to generate six students. Four of those students would attend middle and high schools that currently have no available capacity, requiring the developer to pay $119,900 in mitigation. Staff noted they are conducting an audit of existing development impact agreements and student generation rates. The item is set for approval on February 24.
A board member provided a legislative update, noting that the Florida House unanimously passed bills requiring cursive writing proficiency and allowing marching bands to satisfy physical education credits. Legislation is also advancing to require school districts to post full line-item budgets online and to strengthen safety plans for students with exceptional student education needs.
Board member Ramirez asked about implementing Google’s “Be Internet Awesome” program, a free digital literacy tool for elementary students. Staff confirmed they are looking into it. Board member Furry raised the topic of AI literacy, requesting a review of the district’s norms around AI use in classrooms, its vetting process for education software incorporating AI, and its approach to redefining digital literacy to include AI. He also referenced a bill by Senator Leak aimed at protecting students from companion AI programs that interact with students in human-like ways.
The board agreed to move the May 26 workshop and board meeting to May 19 to avoid scheduling conflicts with the Memorial Day holiday.
Superintendent Moore closed the meeting by thanking the board and expressing optimism about the insurance discussion. “I just want to thank the board for a robust conversation today,” Moore said. “I think you know we all have to really dig into some questions and understand the problems that we’re facing around health care and be a solution for it.”
The board adjourned after approximately four and a half hours, on the 111th day of the school year.
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