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Removal of ARPA support drives sharp rise in York City health-insurance allocations
Summary
Budget staff told the York City budget hearing that $5.7 million in ARPA funds used in 2025 to cover health-insurance costs will not be available in 2026, raising the city's per-employee allocation and moving costs into the general fund.
Budget staff told the York City budget hearing that roughly $5.7 million in American Rescue Plan Act (ARPA) funds used in 2025 to pay health-insurance costs will not be available in 2026, resulting in a substantially higher allocation charged to department budgets.
City staff said the shift raises the per-full-time-employee health-insurance allocation from about $23,415 in 2025 to about $39,152 for 2026. Staff presented the change as an accounting reallocation rather than a new health-insurance policy.
Why it matters: departments will see larger expense allocations because the one-time ARPA subsidy that reduced the…
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