Transforming a budget crisis into $3.6 million in savings

In an era where Iowa school districts are experiencing mounting financial pressures, one of our clients made a switch that led to $3.6 million in annual benefits savings. Their transformation from crisis to control highlights how even the most challenging budget situations can become opportunities for meaningful reform.

The challenge: A $10+ million deficit

Our client found themselves at a crossroads. Like many districts across the state, they were grappling with financial challenges that threatened their ability to fulfill their core educational mission:

• $10+ million budget deficit demanding immediate attention
• Skyrocketing insurance premiums consuming classroom funds and resources
• Declining enrollment impacting revenue streams at a time when fixed costs continued to rise
• Decades-old benefits structure that served the district well in the past but now offered little flexibility to adapt to changing circumstances

District leadership recognized that traditional cost-cutting measures — reducing staff, eliminating programs or shifting the healthcare cost burden to employees — weren’t sustainable solutions.  

Rising healthcare costs, unpredictable insurance market fluctuations and the challenges of maintaining competitive benefits packages while also managing tight budgets have created a new normal that requires innovative thinking.

The solution: A self-funded path to savings

Instead of accepting another premium increase, we teamed up to explore a different avenue. Together, we implemented a self-funded benefits model that put the district back in the driver’s seat.

The transformation focused on three main areas:

1. Cost control — Moving from unpredictable premium spikes to manageable, transparent costs aligned with actual claims experience rather than industry-wide trends.

2. Customized coverage — Designing flexible benefits tailored to workforce demographics and needs instead of accepting one-size-fits-all packages.

3. Data-driven decisions — Gaining complete visibility into claims patterns and cost drivers, leading to informed decision-making based on actual data.

Our client's bold decision to embrace self-funded benefits delivered impressive results.

Immediate financial impact
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The numbers speak for themselves: $3.6 million in annual benefits savings, a reduction that directly addressed their budget crisis while maintaining the competitive benefits package essential for staff recruitment and retention.

This allowed the district to:

• Redirect resources to core educational priorities

• Maintain competitive compensation packages that support teacher retention

• Progress toward greater financial stability  

Operational excellence
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Beyond cost savings, our Workforce Solutions team conducted a comprehensive workflow analysis, identifying improvement opportunities for throughout the district’s HR functions:

• Streamlined data systems reducing administrative burden

• Improved efficiency freeing HR staff for meaningful initiatives

• Measurably increased productivity across multiple departments

• Better employee experience through simplified processes and improved resolution time

Not only did the district save money on benefits costs, but they also improved their internal capabilities and freed up human resources for more critical work.

What this means for your district

Traditional fully insured arrangements include carrier profits and administrative fees that don’t benefit your district. Self-funding with TrueNorth means:

• Predictable budgeting: Costs are associated with your actual experience, providing more accurate long-term financial planning.

• Profit retention: Surplus funds stay with your district, creating additional resources for educational priorities.

• Complete transparency: Full visibility into where every premium dollar goes for better decision-making.

• Strategic control: Make coverage decisions based on your workforce’s needs and district’s priorities.

Our team handles claims administration, compliance monitoring and risk management while you maintain full oversight. Experience the benefits of self-funding without the administrative burden.

We’re trusted by 36 school districts across Iowa, including:

Cedar Rapids

Davenport

Iowa City

Pleasant Valley
…and more

Ready to explore your options?

Every district’s financial picture is unique, but the potential for savings and increased efficiency exists for all of Iowa’s school communities. We don’t just provide services — we become invested in your district’s success, working alongside your team to solve challenges and capitalize on opportunities.  

Your fiscal responsibility and educational mission deserve a benefits plan that works as hard as you do.

Get your complimentary benefits cost analysis today.