Committee forwards $13.1 million supplemental for workers’ compensation to full Board

The Budget and Finance Committee on April 20 unanimously forwarded an ordinance to the full Board to appropriate approximately $13.1 million from general reserves to cover elevated workers’ compensation costs for four departments.

Peggy Sugarman, Director of Workers’ Compensation at the Department of Human Resources, told the committee the city — which is self‑insured for workers' compensation — experienced a 34% increase in claim filings this fiscal year and higher severity for some claims. She outlined requested allocations: $6.0 million to the Fire Department, $3.6 million to the Department of Public Health, $3.4 million to the Sheriff’s Department and $240,000 to the Department of Emergency Management. The funds will allow departments to meet legally required medical and disability payments.

The BLA confirmed the spike in claims and recommended approval while noting that several departments either have funded safety officer or industrial hygienist positions that could reduce future claims if filled. DPH’s occupational health and safety director, Ed Ochi, said recruiting qualified safety specialists has been difficult during the pandemic and that vacancies hamper preventive work. Committee members discussed whether to fund staffing to reduce future claims and asked agencies to pursue recruitment and interim coverage strategies.

The ordinance would increase the city’s workers’ compensation program budget and is funded from the general reserve; the administration expects to replenish the reserve next fiscal year. The committee voted to forward the measure to the Board with a positive recommendation; the full Board will consider it on April 26.