DATE: June 30, 2026
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Budget Resolution Increasing Appropriations and Estimated Revenues for Human Resources - Risk Management
RECOMMENDED ACTION(S):
TITLE
Adopt Budget Resolution increasing the FY 2025-26 appropriations and estimated revenues for the Human Resources - Risk Management Org 89250100 in the amount of $19,300,000 using actual revenues recorded in FY 2025-26 in the amount of $16,000,000 and remaining portion using available fund balance in the amount of $3,300,000 (4/5 vote).
REPORT
There is no additional NCC (NCC) associated with the recommended action. Approval of the recommended action will allow the Human Resources - Risk Management Division (Risk Management) to continue ongoing claim payments and reserve adjustments related to the Workers' Compensation and General Liability programs. The number of claim settlements in the current fiscal year is higher than anticipated, which has resulted in the need to increase budgeted appropriations. There is a sufficient fund balance to cover the costs associated with this agenda item.
ALTERNATIVE ACTION(S):
There is no viable alternative action. Human Resources - Risk Management will not be able to continue to process claim payments for the Workers' Compensation and General Liability programs or adjust reserve balances to be funded at actuarial recommended levels.
FISCAL IMPACT:
There is no increase in NCC. The recommended action will increase the FY 2025-26 appropriations and estimated revenues in the Human Resources - Risk Management Org 89250100 in the amount of $19,300,000 using actual revenues recorded in FY 2025-26 and available fund balance.
DISCUSSION:
In FY 2025-26 there has been a large increase in claim payments related to Workers' Compensation and General Liability claims. In the General Liability program alone, many claims have been settled and paid out in millions of dollars. Workers' Compensation...
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