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Council approves Human Resources budget after line‑item cuts; debate centers on health insurance costs and GLP‑1 drug spending
Summary
Patricia McGawan presented the FY27 Human Resources and health insurance budgets; councilors probed staffing and contractual legal costs, approved budget amendments and debated large prescription cost drivers, including GLP‑1 medications.
The City Council approved the Human Resources operating budget Tuesday after several amendments and roll‑call votes, following an extended presentation from Human Resources director Patricia McGawan and a benefits consultant who reviewed health insurance trends.
McGawan described core HR functions — benefits administration, payroll, hiring and union bargaining — and outlined the FY27 personnel request for $674,668 for personal services and level funding on most contractual lines. She said the city has 4,800 active employees and retirees on health plans and that HR processed 87 retirements last year.
Council scrutiny focused on contractual legal spending related to an intensive round of union negotiations (McGawan said the city had held 67 meetings this year), the creation of a new HR position (supported by a workload analysis) and recent transfers into longevity lines. Councilors asked the department to provide a detailed breakdown of legal and contractual expenditures; McGawan agreed to share that report.
Health insurance: The benefits consultant said FY27 medical insurance line items are increasing, driven in part by pharmacy costs. The city will remove GLP‑1 medications prescribed for weight loss from its formulary effective July 1 because utilization produced unusually large pharmacy spending (reported at $3.3 million in 2025 and tracking higher in 2026). Officials reported increases in inpatient and outpatient claims and multiple large claims above stop‑loss thresholds.
Votes and budget actions: Councilors proposed multiple targeted reductions — for example, trimming an overtime line item by $1,000 and other small adjustments. After amendments and a roll‑call, the Human Resources budget was approved as amended.
What happens next: Councilors requested detailed line‑item backup (legal services and contractual breakdowns) and benefit‑cost estimates for the proposed executive‑director appropriation discussed earlier in the meeting. The administration committed to providing the requested documents before final appropriation votes.
