Lehighton Area School District is figuring to have a surplus from its health insurance cooperative and on Monday night, members of its finance committee debated whether to put that money in its general fund or keep it in a reserve account.

Superintendent Jonathan Cleaver said the surplus from the Public School Health Insurance Cooperative totals $662,552. In the past, he said, the decision to be refunded by check or keep in reserve was handled by the business office, but he wanted the board to have the final say this time around.

“This would certainly help with our cash issue for this year,” Cleaver said during Monday’s meeting. “We do have some unbudgeted expenses, such as student transportation, that this would help pay for. On the other hand, you could leave it in the reserve account in case our utilization and claims change and we need extra money. It’s always hard to say how that will play out.”

The PSHIC health plan allows Pennsylvania school districts to pool together against risks. It uses a modified self-funding approach with a defined maximum liability, but retains savings for low claim years.

In the past, Cleaver said, Lehighton boards have used both options. In 2013-14, the district kept $926,474 in the reserve account, in 2014-15 it was refunded $1.2 million by check and in 2015-16 it was refunded $1.1 million by check.

“My preference is for the money to go to the general fund,” Rita Spinelli, chairman of Lehighton’s finance committee, said. “We do need it. We don’t know what funding is coming from the state or what we’ll receive in occupation taxes. My preference is to get the cash.”

Board member Nathan Foeller agreed, saying given Lehighton’s cash flow situation, having the money in hand would be more beneficial.

Fellow finance committee member Richard Beltz, however, said he prefers keeping it in reserve.

“There is no telling what insurance expenses you are going to have coming up,” Beltz said. “If we put it in our bank account, it will be spent.”

The only caution with not keeping the surplus in reserve, Business Manager Edward Rarick said, is that employees may have put off elective procedures late in the year, as COVID-19 positive cases increased, which may now take place in the spring or summer.

“That may have some negative impact on spending in the spring, but it’s definitely a toss-up right now,” Rarick said.

The decision will be taken to the full board of directors, which meets on Jan. 25.