HSS financial update: trust balance projected at about $83M; hiring delays and ECM budget issues highlighted

Pamela Levin, deputy director and chief financial officer for the Health Service System, told the board the trust fund projection stood at about $83,000,000 as of the current reporting period, down roughly $9.8 million from the prior referenced balance. Levin said the budget reflects reporting lags and that the department is preparing for the annual audit.

Levin outlined administrative budget impacts driven by hiring delays and attrition; those delays are producing a projected administrative balance of roughly $900,000 by year end. She said the department has nearly filled all positions and that two staff would start the following week. Levin also described ongoing discussions with the Mayor's budget office and the city budget analyst over an electronic content management (ECM) initiative; the analysts are reviewing the project scope and may propose adjustments, which could require the department to justify the full scope or accept reductions.

Board members asked about the treatment of forfeitures and transfers to the general fund; Levin explained that forfeiture revenues for flexible spending accounts have declined and prior-year forfeitures were used to smooth budget impacts, but warned those reserves would eventually be exhausted and could affect future budgets.

Levin closed by stressing audit readiness and a near-term schedule of budget hearings before the Board of Supervisors, and Director Dodd asked commissioners and stakeholders to communicate with supervisors as needed during the budget process.