Insurance problem called "Bombshell" - WALB.com, Albany News, Weather, Sports

Insurance problem called "Bombshell"

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Albany-- A big budget problem for the city of Albany now that Health insurance benefits of some retired city employees will have to be paid from the general budget.

Since 1997, retired employees health insurance payments came out of the pension fund, but that should not have happened.

Some Commissioners were shocked when told they would have to pay $505,000 this year from the general fund. "Right here you are talking about one half million dollars," said City Commissioner Bo Dorough. "That's for the rest of this fiscal year... This is a bombshell."

Next fiscal year, those retired employee health insurance benefits should cost $1.7 million. Next Tuesday, commissioners will start their regular evening meeting early to work on this troubling budget issue.

posted by dave.miller@walb.com

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