By JOSEPH FITZGERALD

BURRILLVILLE — Now that the Burrillville School Committee has elected to have the School Department join the Governmental Health Group of Rhode Island, town officials are projecting a first-year savings of about $573,000, which could mean a potential savings of $1.7 million over the next three years.

The Town Council voted 6 to 1 a few weeks ago to have the municipality join the collaborative, and the School Committee took similar action at its meeting Tuesday night. Three members of the seven-member school board —Dorothy A. Cardon, Peter Lambert and Paul J. Couture - were absent from the meeting. The other four members —Raymond Trinque, Scott Moore, Joan Cote and Mary M. Karmozyn — unanimously voted to enroll the School Department in the collaborative. (GHGRI), a non-profit health insurance purchasing group consisting of more than a dozen member towns and schools throughout the state - including
North Smithfield and the Woonsocket Education Department — provides more competitive premium rates and lower administrative costs.
Burrillville Town Manager Michael C. Wood says his town will save thousands over its three-year membership with the collaborative.
"Burrillville will benefit as we combine with the purchasing power of a multi-town collaborative rather than trying to be competitive on our own," he said.
Wood said after the initial three-year commitment, GHGRI will re-bid its insurance programs and the town can decide at that time whether or not it will remain in the collaborative.
The town manager said it is "highly improbable" that Burrillville can achieve the same savings and benefits as the collaborative.
For example, he said, this coming year Burrillville was facing an 8 percent increase in health care premiums, but by joining GHGRI the town's projected health care budget will actually decrease.
"This by no means solves the larger budget problems precipitated by the state, but Burrillville is moving in the right direction," he said.
The North Smithfield School Department, which recently joined the collaborative, announced last week that it will realize a 7 percent rate reduction over this year's health coverage costs. That 7 percent rate reduction translates to a 22 percent savings over the figure that had been budgeted for fiscal year 2009. As a result, that School District is looking at a $400,000 in savings.
The North Smithfield Town Council this week also voted to have the town join the consortium, which will see a savings to the town government side of the budget of about $131,000.