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Committee moves supplemental self-insurance and workers’ comp appropriations after budget questions
Summary
The committee placed supplemental appropriations on consent: $12.5 million for the self-insurance health plan and $958,856 for workers' compensation; aldermen asked for actuarial context and clarity on claims administration.
The Springfield Committee of the Whole on Feb. 10 placed two supplemental appropriations on the consent agenda to bolster the city's self-insurance reserves and workers' compensation funding.
Budget staff presented ordinance 20 26 0 5 6, a $12,500,000 supplemental appropriation for the Self Insurance Fund (health plan). Alderman Hanauer and other members asked whether the amount had been budgeted previously and how the city was accounting for a vendor name change (referenced in discussion as Luminaire/Net Impact). Budget staff said the appropriation is an additional reserve based on actuarial estimates to cover anticipated claims and that the city would not return to council for more funds for these specific items if the reserve is set appropriately.
On workers' compensation, ordinance 20 26 0 5 7 would add $958,856 to cover workers' compensation. Alderman Notriano asked what the supplemental brought the city’s total workers' compensation spend to and who handles risk management; staff explained the roles: PMA handles active claims and administration, Livingston & Mueller (outside counsel) handles arbitration, and city staff coordinate settlement approvals.
Budget directors and aldermen discussed the trend of high workers' compensation costs and the need for clear reporting to show how supplemental funds are used. Both supplemental items were placed on consent and the chair called for vote; aldermen approved the motion to place these items on the consent agenda.
What happens next: The supplements were placed on consent; staff indicated they will provide more detailed actuarial and historical spending breakdowns to aldermen upon request.
