The move pays down part of a multimillion dollar deficit in the hospitalization plan for Evansville city employees.
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In 2016, Evansville’s self-funded city employee hospitalization plan was hit hard by a number of large claims. Since then, city officials have been trying to pay off a deficit in that budget item.
Right now, the deficit is just under three million dollars.
A finance ordinance Monday evening will eliminate $800,000 of the deficit. Fifth Ward councilman Justin Elpers said he’s against using local income tax funds to pay down the deficit.
That prompted an exchange with council finance chair Ron Beane.
Beane: “Exactly how does this deficit go away? You’ve already found that you don’t have support on this council to raise the cost for the employees. You tried that and it didn’t work. “
Elpers: “I don’t know what’s going to happen on this, but if we strike this, that could force the hand of the administration to make adjustments.”
Elpers’ motion to remove the payment from the finance ordinance was voted down 6-3.
In other business, the council unanimously voted to disburse three quarters of a million dollars in federal CARES Act funding to two agencies to help local residents facing eviction because of the coronavirus pandemic.
