Wednesday, December 21, 2011

Federal Strings vs. San Angelo City Promises

When the City of San Angelo applied for Early Retiree Reinsurance Program (ERRP) funds in July 2010, their application stated:

The City of San Angelo is self-insured for health coverage.  Early Retiree Reinsurance Program Reimbursement proceeds will be deposited in a dedicated account for insurance funds.  These funds will then be used to offset increases in premium contributions and increases in participant costs.
In their last meeting Council decided to use $343,000 in ERRP money in 2012.  The problem is the city will use the funds in a year when premium contributions and participant costs are going down.  Council members want to avoid federal strings, however in doing so, the City breaks the only string associated with the program. 

One might conclude city leaders have forgotten their promise made eighteen months ago.  One could wonder if they aim to purposefully violate the only ERRP rule, that money be used to cushion cost increases.

Forgetful or twisted?  Neither are the least bit inspiring, but that's the abysmal state of leadership.

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