Vote — approved

Jack Sellers	yes
Thomas Galvin	yes
Bill Gates	yes
Clint Hickman	yes
Steve Gallardo	yes

Ayes: Jack Sellers, Thomas Galvin, Bill Gates, Clint Hickman, Steve Gallardo

Item Text

36. BUDGET ADJUSTMENT FOR THE FY 24 EMPLOYEE BENEFITS TRUST FUND In accordance with A.R.S. § 11-981 (C), approve the following amendments to the FY 2024 budget: a. Approve an increase to the Human Resources (D310) Benefits Trust Fund (685) Operating (OPER) revenue and expenditure appropriation by $5,000,000. b. Approve offsetting eliminations to the Eliminations County (D980) Eliminations Fund (900) Operating (OPER) revenue and expenditure appropriation by $5,000,000. Budgeted expenditures in the Benefits Trust can be increased pursuant to A.R.S. § 11-981 (C), which states that expenditures during the fiscal year from a trust are not subject to the provisions of title 42, chapter 17, article 3. The requested budget adjustments would increase both the revenue and expenditure authority for the Benefits Fund (685) by $5 million. There are three major factors that have contributed to the increase in expenditures over the budgeted amount: 1) A “return to normal” from pre-pandemic level of claims under $100,000. 2) New specialty drugs launched in 2023 including those for Diabetes were not budgeted for in Fiscal Year 2024. 3) The 2024 budget revenues (rates) were not increased, which kept expenses artificially low. (C-31-24-065-X-00)

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