By Josh Davis, Associate Editor

(Jan. 11, 2018) The skyrocketing health insurance costs in Pocomoke that drove a budget overage of $162,000 in the first six months of fiscal year 2018 led to a budget amendment Monday that cut funding across the board in all other departments.

Finance Director Janet Wilson said several members of town staff suffered extended hospital stays in recent months and the town, self-insured up to a $50,000 deductible, paid the price.

That apparently includes Mayor Bruce Morrison, who was hospitalized in November with a subdural hematoma, and several retired employees who suffered heart attacks.

“We’ve had numerous individuals, retirees and current staff members that are in the hospital, which has increased the first six months health insurance by $162,000, unbudgeted,” Wilson said. “We are self-insured, so it’s cost us quite a bit of money.”

Additionally, legal fees are up because the prior city manager also served as city attorney, three unexpected retirees cost about $42,000 and the closure of Riverside Grill required the town to buy about $30,000 worth of equipment left in the building, Wilson said.

She and City Manager Bobby Cowger went “line item by line item” through the budget to try and balance it for the fiscal year, Wilson added.

“We did have to go into each individual department’s budget and cut a little bit out … to cover the over-expenditures,” Cowger said. “When you have over $200,000 in unexpected overruns … you have to cut and pull where you can.”

A vote to accept the revised budget was unanimous.

Cowger, who began as city manager in August, months after the 2018 budget was approved, said Tuesday he planned to consider alternate health insurance plans for the next fiscal year.

“Most everybody goes in and looks at their budget after six months, but what happened to us is we have gotten hit for $162,000 of over expenditure for our health care and hospitalization … that’s what caused us to have to really tighten up things and draw money in from different areas,” he said. “I can’t be at the end of this year and owe $200,000 of unbudgeted money – I’d look like a fool.

“Next year, I assure you, I will not get in this position,” he added. “A small town like Pocomoke’s got no business being self-insured – it’s a dice roll.”

He said the city generally pays about $800,000 in insurance. This year, that number will top $1 million.

“They have been like this for 10 or 15 years,” he said. “The last eight years, three times they’ve been under what the insurance has estimated, but the last five years they’ve been over each year.

“I’m definitely going to shop our insurance cost next year,” Cowger added.