Mayor Calnon Proposes Health Insurance Reserve Fund

The City of Plattsburgh spends roughly $Six point One Million Dollars on Health Insurance Every year.. But every year, they’re budgeting closer to $Seven Million Dollars.. and in these numbers, there is good news and there is some bad news.. the good news is that even though the city budgeted to spend $2.2 Million Dollars of their un-appropriated fund balance.. At year end, it looks as though the actual number will be under that by close to a million.. Plattsburgh’s Mayor Jim Calnon says The Largest single contributor to that difference has been health care..

AUDIO – 072814 – Plattsburgh’s Mayor Calls for Health Insurance Reserve Fund

The Bad news, Calnon says is the unforeseen consequence of the Affordable Care Act for cities like Plattsburgh who will become subject to the “Cadillac” taxes and fees related to their health insurance benefits program… and those numbers would go up if they continued the status quo..The Mayor says those fees, which go directly to the federal government and don’t benefit any employees or taxpayers locally will cost the city in the range of $800,000 by 2018… Mayor Calnon is proposing a resolution to establish a healthcare reserve account on the city’s books which he says would lower the Cadillac Tax in 2018 and secure funds in the budget in a specific fund to support the ups and downs of healthcare expenses in the city over a five year cycle..

From a budgeting point of view, the numbers won’t change very much.. Last year for example, the money rolled over.. it just looked like the council wasn’t forecasting an accurate number..

Ultimately, Mayor Calnon says, the thing about budgeting is predictability, and that’s what makes budgeting really work… How well you can predict what’s going to happen next year, or the year after that determines how good a budget you’re going to have..

The City Council will most likely consider a resolution to allow for the specific HealthCare Reserve Fund at their next regular meeting on Thursday..

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