Health Department Carry/Over Request
Request approval for the Health Department to use FY03 surplus local funds to offset anticipated budget shortfall in their FY04 budget.
Tucker, White, Breeden
LINK TO ATTACHMENT(S):
ACTION:†††† ††††††††††††††††††††††††††††††††††INFORMATION:† ††
† ACTION:† †X††††††††††††††††† ††††††††††††††INFORMATION:†† †
The year-end Health Department settlement process for the Charlottesville-Albemarle Health Department resulted in a $17,119 surplus to be potentially returned to the County and $19,082 to be returned to the City.† However, Dr. Susan McLeod, Health Department Director, has requested the Countyís permission to use those surplus funds to offset a pending shortfall in their FY04 budget. The normal practice is that these surplus funds are returned to the County.
At the time the Health Department prepared their FY04 budget, they did not anticipate any pay increases from the state and only a 10% anticipated increase in personnel benefits. However, the actions taken by the state in passing the FY04 state budget provided a 2.25% salary increase effective for all employees in December.† Additionally, VRS and health insurance costs resulted in a 22.6% increase in benefit costs compared to FY03. Due to these changes, the Health Department is facing a budget shortfall in the current year. †
The Health Departmentís FY04 budget request to the County was actually $40,000 less than their FY03 appropriation, and they now desperately need the FY03 carry-over funds to meet their FY04 personnel costs.†††
Staff recommends County approval for the Health Department to use $17,119 in FY03 local carry-over funds for their FY04 budget needs.