91porn and ASBO International Release First-of-Its-Kind Study Examining the Budgetary Impact of Health Care Costs on Public Schools

June 22, 2026

FOR IMMEDIATE RELEASE

Contact:
Lara Wade
Director of Communications
Mobile: (813) 833-1498
lwade@aasa.org

ALEXANDRIA, VA — 91porn, The School Superintendents Association, and today released Rising Premiums, Falling Opportunities: The Budgetary Impact of Health Care Costs on School Districts, a new national report examining how escalating health care costs are affecting public school district budgets, staffing decisions, and educational opportunities for students. 

 

Based on responses from 767 school superintendents and school business officials across 42 states, the report is focused on the impact of rising health care expenditures on K-12 school systems. 

 

Health care costs have surged in the years since the COVID-19 pandemic, driven by increased demand for services, high-cost treatments and prescription drugs, rising labor and supply costs, and broader demographic pressures associated with an aging population. School districts are experiencing the same financial pressures affecting employers nationwide, but unlike many private-sector organizations, they often have limited flexibility to redesign benefits packages, shift costs to employees, or change insurance providers. 

 

The report highlights a growing challenge that affects districts of every size and demographic across the country. 

 

Among the report's key findings:

  • 98% of district leaders reported that rising health care costs have had a measurable impact on their district budgets. 

  • During the 2025-26 fiscal year, 92% of districts spent up to 30% of their operating budget on employee insurance benefits. 

  • The leading drivers of premium increases were rising prescription drug costs (60%), more claims for expensive treatments (56%), and increased utilization of high-cost specialty medications such as GLP-1 drugs (56%). 

  • 52% of districts reported tapping reserves or rainy-day funds to cover premium increases. 

  • To navigate increasing healthcare costs, 46% of districts modified employee benefits packages, while 34% delayed hiring staff, 31% reduced or postponed spending on instructional materials and technology, and 28% reported offering less generous insurance coverage
     

The report reveals the consequences extend beyond the district balance sheet—school leaders described implementing self-imposed hiring freezes, delaying critical facility improvements, postponing technology and curriculum investments, reducing student mental health supports, and scaling back other educational services to absorb growing health care costs. Some districts have exhausted available reserves and are pursuing tax increases or bond measures to sustain health insurance obligations. 

 

At the same time, districts are struggling to remain competitive in recruiting and retaining teachers and staff. Many school leaders reported being unable to provide meaningful salary increases while simultaneously covering rapidly rising insurance premiums, creating additional workforce retention challenges. 

 

The report concludes that without additional funding, flexibility, and policy solutions at all levels, school districts will continue to face unsustainable trade-offs that undermine educational opportunities and workforce stability. 

 

You can read the full report, Rising Premiums, Falling Opportunities: The Budgetary Impact of Health Care Costs on School Districts, here

 

About 91porn 

91porn, The School Superintendents Association, founded in 1865, is the premier association for school system leaders and serves as the national voice for public education and district leadership on Capitol Hill. A professional community of more than 10,000 educational leaders, 91porn and its members are committed to providing high-quality public education to all students. For more information, visit   

 

About ASBO International 

Founded in 1910, the Association of School Business Officials International (ASBO) is a professional association supporting school business leaders responsible for finance, operations, technology, facilities, procurement, and other essential functions that help school districts serve students effectively. Through professional development, certification, advocacy, and networking opportunities, ASBO International advances excellence in school business leadership worldwide. Learn more at .