COOPERSTOWN _ The Otsego County Board of Representatives has cut its workers' compensation fund for 2009 by more than $1 million, a move that may reduce some county tax bills in January.
The program insures the county, its towns, villages and the city of Oneonta against injury claims made by employees.
Last year, at the urging of former county attorney Rodney Klafehn, the board greatly increased its reserve fund for workers' compensation, and the program's revenue in the 2008 budget was $2,647,723.
Klafehn argued that the county and its municipal partners needed to set aside more money to shield themselves against disaster, but several local officials complained about the increased cost of the program.
On Wednesday, acting on the advice of Klafehn's successor, James Konstanty, the board voted to reduce revenues in the 2009 budget to $1,534,596, a cut of more than $1.1 million.
Voting against the reduction were Reps. Stephen Fournier, R-Milford; Marti Stayton, D-Oneonta; Keith McCarty, R-Springfield; and Katherine Stuligross, D-Oneonta. However, the measure was passed by a weighted vote of 4,161 to 1,676, with all other representatives, except Rep. Scott Harrington, R-Oneonta, who was absent, voting for it.
Before the vote, Stayton asked Konstanty if the reduction would leave the county and its municipalities vulnerable if there were a disaster.
Konstanty said the county would still have adequate reserves and that insurance advisors had approved the change.
After the meeting, Stayton and Fournier said they remain unconvinced.
``I'd rather see us prepared to handle whatever may happen,'' Fournier said.
The resolution was introduced by the county's Administration Committee. On Thursday morning, that committee's chairman, Greg Relic, R-Unadilla, said he and others in the majority believe the county should not hold reserves beyond what it needs.
``With workers' compensation claims, typically the payout is made over several years, so if there is a need to increase reserves, we'll have a chance to do it,'' Relic said.
By acting as they did, the board has reduced the city of Oneonta's workers' compensation levy by $316,230 and Cooperstown's by $84,816, he noted.
``Those numbers are large, and they're going to make a difference on the tax bills,'' he said.
Just before passing the new workers' compensation budget, the board also approved a change in how municipalities pay for the insurance.
Previously, municipalities' payments were based on the amount of claims filed against them, their ``experience'' and their assessments. The new formula bases payments on experience, assessment and payrolls, a change that Konstanty said will make the system fairer.
The vote on this change came after former Rep. Alexander Shields, R-Richfield, warned against it, saying it would lessen the incentive to prevent accidents, and the measure was opposed by McCarty and Stayton.
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