Goodwin Administration Presents 2020-21 Budget Presentation

Mayor Amy Shuler Goodwin and City Manager Jonathan Storage presented the 2020-21 proposed budget during a presentation today to the Finance Committee of Charleston City Council.

The City’s proposed budget includes an across the board pay raise, significant investment in economic development and tourism promotion efforts, a higher budget for home demolitions at the beginning of the fiscal year and a $3 million paving budget. There were no cuts to overtime or essential services—including police, fire and public works—as part of this budget.  The budget also corrects an illegal holiday pay practice for Charleston firefighters.

As part of the proposed budget, the Goodwin Administration is recommending a change of the City’s insurance program to the local Public Employees Insurance Agency (PEIA) plans and salary raises for all City employees.

“The City of Charleston is fortunate to have dedicated employees that work hard each and every day to move our City forward,” said Mayor Amy Shuler Goodwin. “A raise for all City employees is something that is long overdue, and we are happy that due to fiscal responsibility and accountability we are able to add that to this year’s budget.”

After grim projections about the status of employee health insurance moving into the future, the Administration chose to explore potential alternatives. Consultants helped the City look into multiple plans, with the most cost-effective option being PEIA.

“An initial assessment showed a projected increase in the City’s self-insured healthcare costs of $1.5 to $2.5 million in the next budget year. If left unaddressed, healthcare costs will consume 20% of the total City budget next year. With all things being equal, by 2024 the City is projecting there would be a $16.5 million deficit,” said City Manager Jonathan Storage. “PEIA affords us the opportunity to provide competitive health care while keeping the City financially sound and giving employee raises.”

The Administration’s proposal includes:

• Keeping the CareHere employee clinic open and fully funded
• No change in retiree coverage – they will continue to be funded under the City’s self-funded plan
• Cover all deductible costs under a select plan
• A promise to keep premiums flat for three years
• Maintain the current city vision and dental insurance
• Offer comparable care
• Have a net decrease to the maximum payable out of pocket expenses to employees
• Provide more flexibility for employees

Currently, over 100 municipalities throughout the state of West Virginia have PEIA health insurance.

The City will host informational sessions regarding the potential healthcare changes over the next two weeks that are open to all City employees. These sessions will provide an overview of the new health insurance options being proposed and give employees a chance to ask questions.

City Council will vote on the entire proposed 2020-21 budget, including the switch to PEIA, at the City Council Meeting on March 16.