Charges grow faster than claims-program expense
Kern County’s workers’ compensation self-insurance program collected $26,178,866 in charges for services in 2024–25. The adopted 2025–26 budget raises those charges to $27,287,838, an increase of $1,108,972, or 4.2%.
Total operating expense rises from $25,009,222 to $25,403,716, an increase of $394,494, or 1.6%. The result is a budgeted operating gain of $2,423,696—$240,316 higher than the latest actual gain.
What’s the Scoop With Broach calculated the comparisons from Schedule 10, printed pages 333–334. The accountability question is whether the county’s internal rates track the expected cost of claims and administration rather than simply accumulating balance.
| Measure | 2024–25 actual | 2025–26 adopted | Change |
|---|---|---|---|
| Charges for services | $26,178,866 | $27,287,838 | +4.2% |
| Operating expense | $25,009,222 | $25,403,716 | +1.6% |
| Operating income | $2,183,380 | $2,423,696 | +11.0% |
| Ending net position | $15,012,562 | $17,472,501 | +16.4% |
A larger balance is not the same as excess cash
The plan starts with $15,012,562 in net position and ends at $17,472,501 after $36,243 in nonoperating revenue. The $2,459,939 increase equals 16.4% of the opening position.
A self-insurance balance can support incurred-but-not-yet-paid claims and volatility. The summarized budget does not disclose outstanding liabilities, actuarial confidence levels, claim counts or the department-by-department rate schedule. It therefore cannot establish that the ending position is excessive or insufficient.
The original finding is narrower: department charges grow more than twice as fast as budgeted operating costs, and the fund plans another multimillion-dollar gain. Audited liabilities and the actuarial study are needed to judge rate adequacy.
Sources and further reading
Kern County FY2025–26 Adopted Budget — Workers Compensation Self-Insurance Fund, printed pp333–334 ↗