Base Pay, Big Health Insurance Bills: Personnel Budget Hearing Zeroes in on GVI Workforce Pressures, Plans for Reforms
With health insurance costs ballooning and more than a thousand government employees earning less than $35,000 a year, lawmakers on Wednesday pressed Division of Personnel Director Cindy Richardson for clarity on workforce data and cost trends — even as the broader pay raise debate unfolded around her.
2025-06-27 13:31:08 - VI News Staff
The conversation came during the Division’s fiscal year 2026 budget hearing, where Richardson outlined a $63.1 million recommended budget. Of that, $13.5 million comes from the General Fund, and nearly $49.6 million from miscellaneous appropriated funds, most of which cover governmentwide fringe benefits, including health insurance. The agency’s internal operating budget totals a little over $7 million.
The most immediate cost pressure, according to the Personnel team, is health insurance. Richardson told senators that the government’s group health plan grew by $19.4 million between FY 2023 and FY 2024, pushing the total projected cost to $199.3 million for the current year. Of that amount, nearly $166 million is the government’s share of premium contributions.
Sen. Angel Bolques Jr. asked what Personnel could do to rein in those numbers. Richardson explained that while the Division does not oversee the Government Employees Service Commission Health Insurance Board, the board has a five-year, $1.5 million contract with a consultant whose mandate includes identifying cost-saving strategies. “It’s actually part of the contract,” Richardson said, adding that Personnel’s role is limited to promoting wellness initiatives and encouraging participation to improve overall employee health and reduce long-term costs.