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Council approves $18.6 million in budget supplementary appropriations, citing spike in insurance claims
Summary
The council voted unanimously to approve Bill 25‑26, adding $18,613,900 in appropriations and transfers including a $10 million contribution to the self‑insurance fund after administration staff attributed the need to higher workers’ compensation and liability claims.
The Anne Arundel County Council approved Bill 25‑26 on May 4, 2026, authorizing $18,613,900 in supplementary appropriations and transfers to cover shortfalls and one‑time needs across county operations.
Ethan Hunt presented the measure on behalf of the administration and listed the major components: $10,000,000 to the county’s self‑insurance fund, $515,000 to workforce development, and multiple allocations within public works totaling more than $6 million for personal services and contractual work. "Just briefly it appropriates $10,515,000 from unappropriated fund balance and transfers $8,098,900 from CAO contingency for a total of $18,613,900," Hunt told the council.
Council members pressed administration staff for specifics on the self‑insurance contribution. Susan Harold, central services officer, explained the drivers: an approximately 7% increase in workers’ compensation claims with about a 17% increase in associated costs, several large general‑liability claims (including a significant cyber incident) and larger automotive claims. "We have about a 7% over last year... which is about a 17% increase in cost," Harold said, adding that the county also covers the community college, library and the board of education under the self‑insurance fund, which magnifies the cost impact.
Councilmembers asked whether training or safety programs had reduced claims; Harold described an active county safety program run by risk management and said additional information could be provided to the law office and central services. Councilmember Volke and others signaled interest in longer‑term budgeting implications: whether the increase is a spike or an ongoing liability that must be addressed in future budgets.
After discussion, the council called the roll and approved the bill unanimously (7–0). The vote authorizes immediate transfers and appropriations; central services staff said they will continue to report through the county’s annual financial reporting cycle about claims trends and fund status.
The administration characterized the appropriation as necessary to stabilize the self‑insurance fund given a mix of rising claims and inflationary medical costs in the region. Councilmembers signaled they expect to monitor the fund as FY27 budgeting proceeds.
