POTENTIAL DEFICITS? - The director of the Arkansas State Employee Benefits Division has warned of future budget shortfalls for state employee insurance plans. Jake Bleed director of employee benefits discussed a quarterly report last week with Members of the newly-created Employee Benefits Division Oversight Subcommittee of the Arkansas Legislative Council.
“Our surplus for 2022 is $63 million, for 2023 we’re tracking at a $25 million surplus. That’s very, very positive. From there we start running a deficit in ’24, and in ’25 and in ’26,” Bleed explained,
Bleed credited fund transfers from other state government departments and new dollars from the American Rescue Plan for the program’s current financial stability. Despite that, he said rising healthcare costs and other factors could see the program facing a $334 million budget deficit by 2032. Bleed stressed lawmakers should act proactively, since budget approval by lawmakers happens about 14 months before the start of the new fiscal year.
