News Photo by Kayla Wikaryasz On Tuesday, the District Health Department No. 4 (DHD4) discussed their financial challenges, employment updates, and their continued search for a new administrative health officer. The next board meeting will take place in Cheboygan on Nov. 18.

ALPENA — Department of District Health No. 4 (DHD4) board members revisited the issue of asking counties for a 10% increase in appropriations to cover the cost of the department’s unfunded pension liabilities.

At the September meeting, Michelle Konwinski, DHD4 financial director, told the board that the Municipal Employees’ Retirement System of Michigan (MERS) contributions is 55% funded for their pension liabilities, and they need to be at 60% by 2028.

The Municipal Employees Retirement System of Michigan (MERS) is a statewide public employee retirement plan which offers both defined benefit and defined contribution programs.

Konwinski explained that even though they made a voluntary payment of an additional $200,000 in fiscal year 2024, it only moved their funded pension liabilities by 1%.

The department has three years to move their MERS contributions by 5%.

Interim Administrative Health Officer Lloyd Peltier reviewed claims with the board and disclosed that the department has a current deficit of $1.2 million.

He also added that Konwinski has significantly reduced the number of penalties that the department must pay.

Mary Hardies, Montmorency County commissioner, told the leadership team that her board pushed back the discussion of a 10% raise in appropriations until the health board discloses a corrective plan for the financial challenges. She said that the Montmorency board is considering a 5% raise in appropriations, rather than 10%.

“The reason why they did five is they wanted to know how we were going to correct going forward,” hardies said. “So now we say we have a corrective action in place, and it’s going to take care of the whole 1.2 million deficit … how are we going to address the unfunded liability?”

Lucille Bray, Alpena County commissioner, told the leadership team that Alpena County was considering the 10% increase but would revisit the discussion at a future meeting.

“We’re going to talk at the next board meeting,” Bray said.

Cliff Tollini and Robert Brietzke, Presque Isle commissioners, said that their board hadn’t made a decision yet on the 10% appropriation request.

However, Tollini asked the leadership team what happens if each county comes back to the health board with different appropriation amounts.

“Everybody can’t have a different number, though,” Tollini said.

Peltier said that in the case that each county comes back to the board with differing amounts, they will have to agree in the middle and go from there.

“That is exactly what is going to happen,” Peltier said.

Peltier also told the health board that Konwinski worked Saturday and Sunday prior to Tuesday’s meeting,before leaving for an appointment out of state.

“I know Michelle has been working diligently, almost around the clock, trying to get this financial report up to snuff” he added.

Pelttier explained that Konwinski has continued to face challenges as she’s worked to clean up the department’s financial issues.

“She’s still running into problems where you go to fix something, you think you got it fixed, and you discover there’s more that’s broken,” Peltier said.

Compounding the financial challenges the health department is facing, the leadership team and department heads are still navigating the continued federal government shutdown.

“We are still on pins and needles,” Peltier said.

Chelsea Engle, nursing director, told the health board that the state budget has allocated “emergency” funding for WIC and family planning through “early November” to account for the federal government shutdown.

“They didn’t give us an exact timeline,” Engle added. “We’re watching the federal government right now and the one timeline they have given us is early-November.” Engle clarified that DHD4 does not handle SNAP.

Peltier said that the department is still in limbo waiting for the federal government’s budget.

“They’re going to dry up again,” Peltier said, in regards to the WIC and family planning emergency fund. “We’re still on pins and needles. We’re trying to keep everything up and running.”

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