Howard Co. Executive Ball Responds To HCPSS Fund Deficit

ELLICOTT CITY, MD — Howard County officials have been notified of concerns stemming from an audit of the Howard County Public School System that revealed a deficit in the district's health and dental fund. Howard County Executive Calvin Ball said the deficit appeared to be "driven by an unanticipated claims spike that exceeded actuarial projections by $10.2 million and a policy decision by HCPSS to provide $3.3 million unbudgeted employee benefit credits."

Ball suggested that HCPSS review its practices that resulted in the deficit and develop a "workable plan" to address that deficit.

"HCPSS makes its own spending decisions and determines its own spending priorities as a separate government entity. The HCPSS general fund budget in fiscal year 2020 ($901.3 million) experienced the largest increase over a decade. During the last 10 years, total direct funding to HCPSS (state, local and other) has averaged an annual growth of 3.2 percent, more than double its enrollment growth of 1.5 percent per year on average," said Ball.

The county has requested the Maryland State Department of Education conduct an audit of the HCPSS health and dental fund to assess the financial implications of carrying a historical deficit in this fund, and to provide a comparative analysis to peer jurisdictions based on program design, benefits, cost details and cost sharing agreements to identify opportunities for savings and cost mitigation, Ball said.

Ball also squelched concerns that the deficit would not impact the county's bond rating.