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Board of Education approves modified health fund deficit reduction plan

Posted at 7:03 PM, Feb 06, 2020
and last updated 2020-02-06 19:03:07-05

ELLICOTT CITY, Md. — On Thursday, the Howard County Board of Education approved a collaborative plan with the County Government to reduce the Howard County Public School System (HCPSS) Health and Dental Fund deficit.

The modified plan proposed eliminating the debt of $39.2 million over the course of four years, through year-end savings and one-time funds from the County.

“This was a collaborative effort that is possible thanks to shared accountability from HCPSS and the County,” said County Executive Calvin Ball. “I’m grateful to the Board of Education and Dr. Martirano for working with my administration to identify a multi-year, pragmatic approach to eliminating the Health Fund debt, so that we can make significant and consistent progress each year until the deficit is fully resolved.”

The updated plan amended the original proposal by preserving at least $8 million of the unassigned fund balance, introducing a mechanism to ensure HCPSS is accountable for generating year-end savings, and a longer time frame to minimize the impact on County services.