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Committee flags $23.3M general‑fund subsidy for city health plan, asks for allocations to department funds
Summary
Auditors told the Finance Committee the city’s group‑health fund would rely on a $23.3 million general‑fund transfer in the proposed budget and urged allocating portions to departments that pay into the plan; the committee requested more analysis and asked for continued plan reform work.
Audit staff told Jacksonville’s Finance Committee on Aug. 14 that the proposed fiscal plan for the city’s self‑insured group health program relies on a $23.3 million transfer from the General Fund to cover claims and administrative costs for the coming year. Auditors and committee members discussed reserve levels, plan design changes and allocation approaches to spread the subsidy across departments that pay into the plan.
Key points: The group‑health fund carries salary and benefits administration for the city’s employee coverage. The Office of Insurance Regulation expects a two‑month claims reserve (about $10 million) for a self‑insured plan; auditors noted that the group fund’s projected balance would be low by year‑end without the planned transfer. The proposed budget reflects collective bargaining changes that reduced the cost impact of certain bargaining units (FOP and IAFF) leaving the city to cover a larger share of non‑public safety claims.
Committee response and recommendation: Auditors recommended reallocating portions of the $23.3M subsidy to other enterprise and special‑revenue funds based on those funds’ pro‑rata share of premiums (for example, building inspection, solid‑waste and other self‑paying funds) so that the General Fund does not absorb the whole charge. The committee accepted that approach and asked for additional reporting and continued review of plan design, noting the administration had proposed a new high‑deductible/HSA option for 2026.
What’s next: The administration will produce a breakdown showing each fund’s recommended allocation and engage consultants and bargaining units as needed to evaluate plan design changes; council requested a fuller update before final budget action.
Ending: Committee members framed the discussion as fiscal stewardship — accept short‑term transfers to maintain coverage while developing more sustainable allocation and plan design strategies in the near term.
