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DPH reports $99 million projected general-fund surplus for FY16-17; EHR funding advance noted
Summary
DPH CFO Greg Wagner reported a projected $99 million net general-fund surplus for FY16-17 driven by hospital and waiver revenues, a $21.5 million deposit to a management reserve and a plan to transfer up to $25 million to fund the department's electronic health-record project; commissioners discussed reserves and timing for budget planning.
Greg Wagner, DPH chief financial officer, presented a brief summary of the department's fourth-quarter financial report for FY16-17, saying DPH projects a $99 million net general fund surplus for the year driven primarily by hospital patient-service revenues and favorable waiver performance.
Wagner said a $21.5 million deposit was made to the department's management reserve (bringing its balance to about $106.4 million) to smooth unpredictable federal payment timing. He noted a $13.8 million expenditure overage tied to Intergovernmental Transfer (IGT) payments that is offset by the federal revenue those payments draw down.
Wagner also recounted progress toward funding the department's EHR project: an agreement allows up to $25 million of surplus to transfer to the EHR project over the next two budget years, part of the department's plan to self-fund the implementation.
Commissioners asked about the primary care division deficit and reserves; Wagner said much of that division's reported deficit reflected an additional reserve to protect the department from potential liabilities, not an ongoing operating shortfall. The commission discussed scheduling for multi-year budget planning and Wagner suggested a December meeting to advance five-year planning.
Next steps: Wagner said the department will continue monitoring federal policy changes and will return with budget planning as requested by the commission.
