Here today … gone tomorrow.

That's the status of an announced 4 percent increase in the health insurance premium for Leland Public School.

Leland's Board of Education was told personally May 19 that the district's anticipated 2008-09 rate increase for health benefits would be cut in half to 4.18 percent. Representatives of the Michigan Education Special Services Association (MESSA) attended the school board meeting to explain how the group has responded to a new state law that requires it to provide school districts with claims history needed to secure competitive bids for health insurance. MESSA has been sharply criticized for its initial interpretation of the state law and what school districts saw as a failure to comply with the measure, which local administrators hope could result in significant savings.

Health insurance costs for Leland, Suttons Bay and Northport — the three county districts insured through MESSA — were $1.86 million for the 2006-2007 school year.

Leland Superintendent Mike Hartigan was initially told that his district would see an 8.79 percent increase in health insurance costs in 2008-09, but was informed in writing May 19 that the increase would instead be 4.18 percent. Suttons Bay, which was also bracing for a significant increase, was told its rates would jump just 3.29 percent. MESSA had apparently categorized districts into groups, with the state’s smallest schools receiving the highest rate increase, “medium-sized” schools getting a more moderate hike, and the largest pool of insured receiving the smallest premium increases.

Board members were pleased since initial projections for the 2008-09 budget appeared as if the district would go below the 6 percent fund balance threshold observed by the board. Possible budget cuts were identified, such as the elimination of a part-time janitorial position and dropping high school tennis. Now, Hartigan, business manager Sandra Potts and the board’s finance committee will have to revert to the originally identified cuts.

“It’s like being on a rubber band as far as we’re concerned,” Hartigan said.

He and Potts believe MESSA failed to include an adjustment made in the district’s prescription drug coverage. A 1-year contract extension adopted over the winter by the board and Leland Education Association increased the $2 co-pay for prescriptions to $10.

Calls made Tuesday to Gary Fralick, MESSA director of communications and government relations, were not answered as of press time Wednesday.

“It makes a tough process event tougher,” Hartigan said, adding that health benefits are the district’s second largest expense to salaries. “I’m happy that Suttons Bay’s increase is only 3.29 percent. MESSA will say that the difference is a result of the ‘census’ information or past insurance history. But a 5 percent swing between two districts right next to each other? I don’t know about that.”