KENNEWICK — The Washington Attorney General’s Office will issue a formal opinion on whether Franklin County commissioners wrongly approved increases to their fringe benefits paid to them instead of medical benefits.
Franklin County Prosecutor Shawn Sant sent a letter June 20 to the AG’s office requesting an opinion on the issue that has divided the county courthouse.
But it’s unclear when the opinion will be finished because it will take time to research, according to a June 26 letter signed by two deputy solicitor generals in the AG’s office.
“Our goal is to process this formal opinion as thoroughly and quickly as possible,” said the letter.
The dispute stems from a 2016 decision by Franklin County commissioners to allow all employees — including themselves — to take a cash payout or contribution to a health reimbursement account instead of county health insurance coverage they would normally receive as part of their job.
Countywide increases also were made to the lump sum amounts based on cost of living increases.
The vote happened shortly after the 2016 November general election, raising the question whether the commissioners could legally vote to give themselves that money.
The Washington State Constitution restricts local elected officials from increasing or decreasing their paid salaries during their own terms.
A key question is whether converting health care benefits to cash is considered “salary” under state law.
Franklin County Auditor Matt Beaton believes the vote seven years ago was concerning and likely unconstitutional. He believes that the money should be paid back to the county.
His interpretation of the law is based on an article published by the Municipal Research and Services Center, a private nonprofit agency that says its information is not intended as legal advice.
For Commissioner Brad Peck — a retired U.S. Air Force officer who has taken the cash in lieu of benefits since the start — that would mean repaying nearly $47,000.
And fellow Commissioners Clint Didier and Rocky Mullen, who were not in office at that time but have collected some of the benefits money, would need to repay $334 each.
Former Commissioners Bob Koch and Rick Miller would have to repay nearly $20,000 and $21,000, respectively, claims Beaton.
Sant wrote that his office was unable to conclude whether or not such benefits are a “taxable fringe benefit” that would fall outside the general constitutional prohibition on mid-term increases.
The county has seen an increase in the number of employees and collective bargaining contracts seeking cash payments instead of health benefits due to a variety of reasons — including existing military benefits or a spouse’s health plan — that may make having county insurance coverage redundant.
One concern, Sant wrote in his letter, is that requiring commissioners to receive health insurance instead of a cash payment would disproportionately affect people who served in the military.
“Those members already have insurance by virtue of serving out country and would not generally benefit from additional insurance,” he wrote.
“We want to make sure our approach to this issue does not implicate equal protection issues as this same benefit is offered to other employee insurance groups who elect this same option,” he wrote.
