This motion seeks approval to transfer $2,000,000 from the BSO Workers' Compensation Fund reserve to BSO Administration to settle workers' compensation claims. The Fiscal Year 2019 operating budget includes $13,748,812 for BSO workers' compensation claims. If approved, this transfer would bring BSO's total Fiscal Year 2019 budget for workers' compensation claims to $15,748,812.
BSO has administered a workers' compensation program for its employees since October 1, 2012. Prior to that date, BSO employees were included in the County's workers' compensation program. The County provides funding to BSO for its workers' compensation program through its annual budget. As provided in the Memorandum of Understanding (MOU) which transferred authority for a workers' compensation program for BSO employees from the County to BSO, the amount budgeted for BSO workers' compensation claims exposure is based on an annual actuarial report prepared at the County's expense. The actuarial report projects the budgetary need for the self-insured portion of BSO's workers' compensation program in order to pay claims and have adequate reserves for outstanding liabilities. The MOU prohibits BSO from transferring funds budgeted for workers' compensation to any other areas of their budget and specifies that excess funding be returned to the County at the end of each Fiscal Year for deposit into the BSO workers' compensation fund.
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