Reply to MCPS has a $40 million deficit in its Employee Benefit Plan (EBP)

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Today in the fiscal management meeting, they went into some pretty alarming details about where MCPS stands fiscally:

[youtube]https://www.youtube.com/watch?v=RppXIR2BeDY[/youtube]

Apparently, the Employee Benefit Plan (EBP) fund balance has a $40 million deficit. This deficit is directly related to the spending freeze that's currently in place and why MCPS is looking to charge for summer school and transportation going forward.[/quote]

Wonderful. Another reason to get rid of Dr. McKnight. She is a 360 degree disaster.[/quote]

How exactly is this her fault?  Not to mention the finance team has been bringing awareness about the potential flags for awhile(such as higher healthcare cost and more people acquiring them likely from things that got put off during the pandemic.  Also they were very vocal about the fact the major cuts were going to be needed for FY2024 given that we’re forced to deplete the standing fund balance, ESSR funds were going a way, and inflation, while lower still had prices overall higher.

And now upon seeing the latest project they input expenditure freezes.  What exactly do you expect them to do?

I mean I guess last year they could have cut another 70-100M from the budget, but not sure anyone would have been happy about that either.[/quote]

I wouldn't let McKnight and MCPS off the hook that easily. Lynn Harris rightly asked Reilly why MCPS wasn't doing a better job of tracking this, and Reilly's answer was shaky and two-fold.

1. That they were caught off guard by how steep the inflation impacted them (which is just...I don't know how that happened since inflation has been a thing for at least two years now)

2. That cuts he would have liked to implement weren't palatable since it would have meant cutting student-facing services or initiatives (this points to MCPS finance not being able to push back against McKnight. The AP/IB exam thing is an example of this)

3. The Ozempic/WeGovy thing and the use of those drugs added to the increase in claims costs. (He didn't break down how much he attributed that specifically to though. So if Ozempic/WeGovy is only responsible for $1 million out of the $40 million hole they're in, that would be good to know.)[/quote]

It’s not just that and health care costs are out of control.  I’ve been on shots that were $2k per shot and infusions that were I far more than that. [/quote]

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