For the first time in years, Granbury ISD’s insurance provider is facing competition – and dropping prices by hundreds of thousands of dollars. Now, some trustees are blasting the company for taking advantage.
“I think that the incumbent company has been milking us for a quarter mil a year,” said Trustee Tim Bolton in a meeting on August 25. “That just rubs me the wrong way.”
Granbury ISD must select a new insurance provider by September 1, so trustees will meet on August 29 to make their final decision. Staff are recommending the district keep its long-standing insurance provider, Texas Political Subdivisions (TPS) – a public entity that charged $1,124,928 last term.
Now TEE Risk Management – affiliated with Texans for Excellence in Public Education – is competing, quoting the district only $820,410. It updated this quote to $831,060 in a revised proposal.
In response, TPS dropped its quote to $836,157 – making the plan nearly $300,000 cheaper. This led trustees to question whether the district’s current provider has been taking advantage.
“I would not go with these guys again, just because they took advantage of the ‘free money from the government,’” Bolton said. “It’s not free money, it’s taxpayer money, and we have a responsibility to take care of it and safeguard the taxpayer.”
His remarks brought audible applause from the audience. Bolton said the extra money could have been used to repair air conditioners, hire more teachers, or improve the special education program.
Trustee Karen Lowery echoed these points, stating that TPS has brought a “significant cost reduction” from its premium last year.
“We can assume we’ve been overcharged for our required coverage over the past few years,” she said. “Risk has not gone down, our insurance rates have not gone down, and liability has not changed. So it is interesting they were able to reduce their costs.”
Lowery asked Chief Financial Officer Emmett Whitefield why TPS decided to reduce its premium this year, and he said he did not know.
The district likely saw a “reduction in quality of services and potentially higher costs” by not seeking competition from other insurance providers, according to Lowery. She recommended including accountants and lawyers in the process.
“We should do our best for the taxpayers by making this our practice to bid these things out every 3 to 5 years,” Lowery said.
Lowery also asked Whitefield how much these savings could have helped students, had there been a competitor last year.
“I cannot answer that question because we did not do it,” Whitefield replied. “I know that going forward we will do it every year.”
Randy Rives, a former trustee for Ector County ISD, said during public comment that the staff’s proposal to renew the district contract with TPS was “deeply troubling.”
“The district’s long-term carrier, TPS, quietly increased premiums year after year, and there would be no competition to hold them accountable,” he said. “Suddenly, when that competition comes up, they find a $300,000 reduction. That is not working with you, that is not working with the school district, and that’s not being a good partner.”
TPS claims it takes a “comprehensive, well-structured, and expertly managed approach to handling every claim,” and uses an “exemplary set of best practices for the day-to-day operation of the fund.”
The Coverage
In general, TEE Risk Management offers equal or higher coverage limits than TPS for each liability category, according to a comparison provided to officials and obtained by The Dallas Express.
Denise Reeves, a resident and retired K-12 administrator, expressed concerns about TPS’s coverage during the meeting.
“The coverage limits also leave dangerous gaps that could expose the district to devastating financial strain,” she said. “We are one storm, one hail event, or one tornado away from a catastrophic loss. In those moments, it’s not the quoted premium that matters – it’s whether the policy truly protects the district.”
While deliberating, trustees noted TPS’s higher coverage for property damages, at $254.3 million, contrasted to TEE Risk Management’s initial offer of $224 million. Though according to the comparison, the latter provider’s current offer is more than $253.9 million.
The Process
The bidders based their quotes upon numbers provided by the district. So some trustees raised questions about transparency throughout the process.
Whitefield told Lowery the district solicited three different insurance companies. He cited another staff member, saying officials used an “informal RFP” – or “request for proposals” process.
“All three companies, were they aware? Did each person have a specific question, did they have the deadlines, did they have the groups,” Lowery asked him. “Was everything sent out to each of the three companies, all the same?”
Whitefield again deferred to another staff member, who he said “gives all the information to all three companies.”
Trustee Courtney Gore said TEE Risk Management submitted its revised quote after the deadline, so officials would have to consider its initial estimate.
“But they were not given a certain deadline,” Lowery replied.
After some discussion, Bolton said these issues “would be reconciled when we engage with them.” He moved to accept TEE Risk Management’s proposal, which had previously failed after a vote.
Eventually, trustees voted to table the item until Friday, August 29. They will next convene at 8 a.m. that day for a “special meeting,” where they will decide which insurance provider to accept.
The Dallas Express reached out to Lowery and Bolton, but did not hear back in time for publication.