Taxpayer Money Mindset: How the Commission Views Insurance Funded by You

Understanding Tax Dollars and Settlements

When it comes to how elected officials view your tax dollars, especially regarding settlements, the conversation often revolves around two main theories: are they simply ignorant of the implications, or are they inept in managing public funds? Settlements can often cost taxpayers hundreds of thousands of dollars, if not millions, and the way these decisions are made can leave citizens scratching their heads.

The View of Elected Officials

Elected officials are entrusted with the responsibility to manage public resources wisely, which includes the judicious use of tax dollars. However, when settlements arise from lawsuits or grievances against the government, it raises a significant question: how much do they actually comprehend about the financial repercussions for the taxpayer?

In the below examples we will look at how two cases reached agreement by the Wakulla County Board of County Commissioners, to settle. Then, we will look at the cost of the insurance premiums to taxpayers and the related settlement data. As always, you decide, but can you point out how we have a significant savings from settling? Any curiosity about the amount of the employment law related lawsuits and why they are occurring? Can the BOCC actually define what constitutes a cost savings?

What Does This Show?

The above and below show snippets of two executive sessions during discussion of potential settlement (they were later settled). The following parties are participating: Encinosa is the current County Attorney, Commissioner Ralph Thomas, Commissioner Mike Kemp, Former Commissioner Hess, and Commissioner Messersmith. Mr. Taylor and Mr. Wheeler are attorneys representing the Florida Association of Counties Trust.

What is interesting about this exchange is the view that settlement is favorable because it is not taxpayer dollars or, it is the "cheapest route out". That seems a bit curious since it is the taxpayers that foot the bill for the insurance premiums. Do the premiums increase as the years go by and the county shows more risk with increased lawsuits and settlements? This information can be requested from your Clerk of Court. However, be sure to inquire about any discrepancies in the information you receive. Our contributor had to clarify accounts and amounts to piece together the premiums for each year and still determined that one year was missing.

So Did We Really Save Money?

The above discussions surrounding legal expenses and insurance premiums prompt a critical examination of our civic structures. Would an unsuccessful trial result in a greater financial burden? Conversely, if we achieved success in court, might this deter future lawsuits presented to the Board of County Commissioners (BOCC)? Moreover, addressing the root causes of these lawsuits within our institutions could prove beneficial. As we navigate these uncertainties, it's essential to analyze the data at hand, particularly the relationship between settlement amounts and insurance premiums.

The above amounts reflect the settlement payouts for the various types of cases as listed from 2014 - 2023 (note: what was available to date, as more were pending). The County operates on a Fiscal Year that operates from October 1st through September 30th. Keep that in mind as you view the next spreadsheet. This reflects that settlement payouts for the timeframe displayed totaled $2,077,188.09. This is the amount that FACT paid out on these these cases, on behalf of Wakulla County, according to their records.

This represents what the County Clerk records show as paid to the Florida Association of Counties Trust for insurance premiums plus insurance deductibles. Think of your car insurance. You may have a collision deductible of $500 to $1,000 depending on your policy. This is no different. It appears that the general deductible for employment law claims is $5,000.00. We also have the contract on the Media Fire drive if you would like to dig deeper into how the deductibles are calculated.

It is also important to note that there was no data in the general ledger information we received as it pertains to fiscal year 18/19's premiums so we took the average of the past five years to fill the gap. It is highlighted in red to reflect the estimate. The total for the premiums plus the deductibles (to the best of our ability to decipher - not all labeled efficiently) totals $2,008,689.00.

Now you will say, YAY! The county saved us money by settling these cases. We paid $11,499.91 less in premiums than what FACT paid to settle our cases! WIN - WIN! But wait, there's more!

OUR FACT INSURANCE PREMIUM JUMPED TO $422,735.00 for fiscal year 2024/2025.

The moral of the story: FACT is going to recoup the dollars paid. All day. Everyday.

You (the taxpayer) pay the premiums and thus you (the taxpayer) paid the settlements. It's simple math. It is your tax dollars no matter which way the powers that be manipulate it to look like they are doing the taxpayer's a favor by settling. What is more disturbing than a county attorney and elected officials that can't digest this? So, the question remains, is this ignorance or are they just inept? Or, both?

What Gives? Closing Thoughts

As shown in the first two batches of screen prints, the Commissioners by way of advisement from the County Attorney, seem to think that FACT Insurance money is derived from thin air. They seem to totally ignore and/or be aware of the fact that it is the taxpayer that foots the bill for the premium and suffers when costs become so burdensome to the insurer (FACT) that they significantly increase the premium to cover the amount of risk that the BOCC has historically shown. For example, see the increase in the FACT insurance premium for FY 2024-2025.

So what can be done?

As far as the thinking of the commissioner's regarding what constitutes being defined as "taxpayer money", only they can tell you. Perhaps a better question would be, how can we avoid these lawsuits in the first place? Is there a common denominator leading to the lawsuits? Do we have elected leadership that is interested in holding unelected officials accountable? Does the County Attorney understand that FACT dollars are still taxpayer dollars since we pay the premiums?

All valid questions and we hope it gets you thinking!