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Budget Amendment - Health Care Fund
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INFORMATION CONTACT:
Jason May, Budget & Grants Management, Director, 704-283-3760
ACTION REQUESTED:
Approve Budget Amendment # 21.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
Union County maintains a self-insured Health Care Fund to account for employee health insurance claims and related costs. During FY 2025, claims activity exceeded budgeted projections, requiring the Health Care Fund to draw on its fund balance reserves to cover the shortfall. This amendment is necessary to restore the Health Care Fund's financial position and ensure adequate reserves are available to support ongoing claims obligations.
This amendment appropriates $5,000,000 from General Fund unassigned fund balance and $2,500,000 in lapsed salary savings, for a total transfer of $7,500,000 to the Health Care Fund. The lapsed salary funds represent personnel vacancy savings realized across County departments during FY 2026. Together, these sources allow the County to replenish the Health Care Fund's fund balance without impacting current service delivery or operational budgets.
FINANCIAL IMPACT:
The Unassigned Fund Balance will decrease by $5 million. Salaries and benefit lines from general fund department will be reduced by $2.5 million. The Health Care Fund will be increased by $7.5 million.