ORANGE COUNTY FACES WORKERS’ COMP DEFICIT… MOVES TO BOOST RESERVES:
The Orange County Board of Supervisors is taking action to remove the county’s self-funded workers’ comp from the economic roller coaster that has left it funded at just 60% of its expected losses. Moving forward the program will have to be funded at 80% of its expected losses, under a resolution adopted by the board. The change will be phased in over the next five years to lessen the hit on county departments.
As it stands, the new funding policy will result in a 10% increase year over year, while the fund erases the deficit. This works out to an additional $2 million to $3 million being taken from departmental budgets each year and earmarking it for the workers’ comp fund.
The county had $81.6 million in reserves for workers’ comp liabilities estimated at $122 million to $145 million as of June 30, 2011.