News Photo by Kayla Wikaryasz On Tuesday, the District Health Department No. 4 (DHD4) leadership team and health board met in Atlanta to provide updates to programs and finances. Part of the meeting was spent discussing the leadership team’s intent to increase county appropriations to offset costs for their unfunded pension liabilities.

Editor’s note: This story has been updated to reflect the following changes: The department has to be at 60% by 2028; and the department will likely have to pay $1.1 million by the end of the year.

ATLANTA — The District Health Department No. 4 (DHD4) leadership team updated the board on Tuesday on their intent to ask the counties within their coverage area to pay more in local appropriations to offset costs to the health department’s unfunded pension liabilities.

Michelle Konwinski, DHD4 financial director, told the board that the health department is $500,000 “in the hole” for the current fiscal year. She clarified that the previous money taken back by the state, that the health department currently estimates to be close to $1 million, was for the previous fiscal year.

Konwinski explained that the $500,000 is because of unfunded pension liabilities that the department is required to pay. Currently, the department is at 55% for unfunded pension liabilities. Konwinski stated that the department has to be at 60% by 2028.

For context, Konwinski explained that the department will likely have to pay $1.1 million to cover their unfunded pension liabilities, along with some reclassified costs, by the end of the year. The most recent payment for their unfunded pension liabilities was $200,000 more than what was required for the department to pay, and only decreased their unfunded pension liabilities by 1%.

Konwinski told the board that to navigate their financial challenges, they will want to overcome their pension payment obligations.

“We look at where we’re headed, what the problems are … I do feel that this is a very large item for us to overcome financially,” Konwinski said. “Really, more grants are what we need and to increase our local appropriations.”

In total, the leadership team has proposed to increase county appropriations by $23,000 for Alpena County, $28,000 for Cheboygan County, $13,000 for Presque Isle County, and $9,700 for Montmorency County.

Konwinski clarified that local grants and local appropriations can be used to fulfill a portion of their unfunded pension liabilities.

Alpena County Commissioner Lucille Bray stated that she was not willing to vote on an increase on local appropriations until the DHD4 provides necessary reports, such as the single audit that has been delayed further. The single audit was originally due by March of this year.

“I cannot vote for this, without having knowledge, without having an audit of what has happened in the last year,” Bray said. “I can’t go before our board and ask them to increase the liabilities because there’s been questions … when I go to these meetings, ‘What have we found out?’ And each month, we don’t find out anything.”

Konwinski explained that the audit is being delayed further because she has to retroactively file reports for the years of 2021, 2022, and 2023 for Medicaid reimbursements. She stated that the previous financial director, who resigned earlier this spring, failed to do so.

“There’s required reporting that is due on that annually, and that has not been done, ’22, ’23, and ’24,” Konwinski said. “So I have, on top of getting this stuff done within our financials, I have three years of that report to complete.”

Alpena County Administrator Jesse Osmer told The News that he cannot yet give an official response to the appropriations proposal by the DHD4 leadership team.

“I have not yet spoken to my board, so I cannot give an official response on behalf of the county,” Osmer said.

However, Osmer did say that due to the department’s recent financial challenges, certain questions will need to be answered.

“I feel that with recent headlines regarding their management of funds, we will need to get answers to a number of questions and further discussion before we entertain that large of an ‘ask,'” Osmer said.

IN OTHER BUSINESS

— Dr. Joshua Meyerson, DHD4 medical director, updated the board on efforts to educate providers on state mandates for kindergarten-aged children to receive vision and dental screenings before the start of school. He also gave updates on rates of fifth disease and lyme disease in the counties.

— Nathan Scott, DHD4 information technology director, told the board that they will have to pay for updated Windows software as Windows 10 will go out of use in October. He also suggested removing unused phone lines in DHD4 offices to cut operational costs.

— Steve Horton, DHD4 environmental health director, gave updates to the training status of a new sanitarian. He also stated that a complaint with a well driller operating beyond DHD4 standards will be resolved by Thursday.

Kayla Wikaryasz can be reached at 989-358-5688 or kwikaryasz@TheAlpenaNews.com.