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Finance Advisory Committee approves $4.345 million transfer to rebalance fringe‑benefit accounts
Summary
The Finance Advisory Committee approved FAC 2026‑9, a $4,345,000 transfer among fringe‑benefit accounts to align projected year‑end requirements after staff described surpluses in active employee health and a shortfall in retiree health.
The Finance Advisory Committee voted to approve FAC 2026‑9, a $4,345,000 transfer among fringe‑benefit accounts in the general fund and the special transportation fund to align funds with projected year‑end requirements.
Deputy Secretary introduced the item and budget office staff described why the transfer was necessary. "We had $43,000,000 put into the active health care in the deficiency bill," Carolyn Mercier, assistant director of budget financial analysis, said. Staff said the active employee health appropriation now shows about a $2.8 million surplus while the retiree health account is short approximately $2.1 million.
Representative Walker pressed staff on the amounts and accounting. "Can you tell me how much?" Walker asked; Mercier answered with the $43 million figure. Ray Ellenroy, director of health care policy and benefits, told the committee that a recent retirement payroll processed since the last monthly reporting changed the deficit estimate: "We've had an additional retirement payroll processed since the last month of reporting," which reduced the retiree shortfall to about $2.1 million.
Members also asked about previous transfers that affected Social Security and higher‑education alternative retirement accounts. Staff confirmed prior actions moved $7 million out of a Social Security account and that an accounting change produced additional charges to the higher‑education alternative retirement program this year.
Committee procedure: Representative Walker moved the item and Rep Ackerd seconded. During voice voting the chair noted two opposed votes; the committee majority approved the transfer. The record does not specify the names of the two members who opposed the motion.
Why it matters: The transfer shifts existing appropriations to cover shortfalls in retiree health while allowing surplus active employee funds to lapse at fiscal year‑end, affecting how benefits and contingency funds are reported for this fiscal year. Committee members said they want clearer, more precise projections earlier in the appropriation process to avoid late adjustments.
What happens next: The approved transfer will be processed to align the accounts with year‑end needs; staff said any unneeded amounts will lapse at fiscal year end and that they will report back with more detailed figures and explanations for program‑level surpluses or procurement delays.
