REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 10, 2026
FROM
REBECCA SUAREZ, Director, Department of Risk Management
SUBJECT
Title
Budget Adjustments for the Workers’ Compensation Self-Insurance Fund and the Law Enforcement General Liability Self-Insurance Fund
End
RECOMMENDATION(S)
Recommendation
1. Approve a budget adjustment in the amount of $3,000,000 to fund the costs associated with Workers Compensation Self-Insurance Fund for permanent disability expenses.
2. Approve a budget adjustment in the amount of $32,500,000 to fund the costs associated with Law Enforcement General Liability Self-Insurance Fund for settlement expenses and outside legal counsel expenses.
3. Authorize the Auditor-Controller/Treasurer/Tax Collector to post budget adjustments to the Risk Management Department 2025-26 budget, as indicated in the Financial Impact section (Four votes required).
(Presenter: Rebecca Suarez, Director, 386-9024)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The increase in appropriation, as detailed below, will be funded by the Risk Management Department’s (Risk Management) Workers Compensation Self Insurance Fund (4082) and the Law Enforcement General Liability Self Insurance Fund (4086) using Available Unrestricted Net Position and excess insurance reimbursements. These funds are sustained by Board of Supervisors (Board) approved rates charged to departments. This item authorizes the Auditor-Controller/Treasurer/Tax Collector to post the following 2025-26 budget adjustments necessary to fund these costs:
|
Cost Center |
Commitment Item |
Description |
Action |
Amount |
|
7310004082 |
52002610 |
Permanent Disability/Pain & Suffering |
Increase |
$3,000,000 |
|
7310004082 |
40909995 |
Residual Equity Transfers In |
Increase |
$3,000,000 |
|
7310004086 |
52002449 |
Outside Legal Counsel |
Increase |
$2,500,000 |
|
7310004086 |
52002635 |
Judgement/ Settlement |
Increase |
$30,000,000 |
|
7310004086 |
40909995 |
Residual Equity Transfers In |
Increase |
$21,247,967 |
|
7310004086 |
40709802 |
Excess Insurance Reimbursement-Current |
Increase |
$11,252,033 |
BACKGROUND INFORMATION
Risk Management administers the County’s self-insured public liability, workers’ compensation, property conservation, safety and risk reduction programs, and its insured programs. All programs are paid for from self-insurance funds and are funded by County departments and Board-Governed Special Districts. Each is billed for specific coverage for the cost to pay losses and excess insurance premiums under the self-insured programs.
The 2025-26 expenses related to disability payments in the Workers Compensation Self-Insurance Fund are trending higher than anticipated. Approval of the recommended actions will allow Risk Management to cover additional disability costs up to $3 million and prevent penalties incurred resulting from late payments. All expenses related to this fund are recovered through a Board approved annual premium.
The 2025-26 expenses related to settlements in the Law Enforcement General Liability Self-Insurance Fund have reached final resolution sooner than anticipated. Approval of the recommended actions will allow Risk Management to cover the recent settlement cost overages of $2.8 million, cover up to $30 million additional settlement costs, and to continue to issue time sensitive claim payments related to legal and other claim related expense categories. All expenses related to this fund are recovered through a Board approved annual premium.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (G. Ross Trindle III, Chief Assistant County Counsel, 387-5455) on February 12, 2026; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on February 17, 2026; and County Finance and Administration (Ivan Ramirez, Administrative Analyst, 387-4020) on February 18, 2026.