GALVESTON – County commissioners voted Monday to bring several administrative functions of the Galveston County Health District under county management, a restructuring officials say could save at least $500,000 annually while allowing more funding to remain available for health services.

The Commissioners Court unanimously approved an interlocal agreement that would shift functions including accounting, budgeting, payroll, human resources, purchasing, information technology, cybersecurity, facilities and investment management to the county.

The Health District also oversees Coastal Health & Wellness and the Galveston Area Ambulance Authority.

County officials said absorbing those administrative services would reduce duplicated costs between the county and Health District and allow additional resources to be directed toward public health operations.

Precinct 4 Commissioner Robin Armstrong, a physician, said rising health care costs were among the reasons county leaders pursued the change.

“Healthcare is really an expensive thing, and this change is being done to help support that organization, our health district,” Armstrong said. “We’re going to be able to provide more services with the money that’s saved as a result of this.”

County documents indicate the restructuring could result in the elimination of some positions currently within the Health District. Employees who move into county positions would become subject to the county’s employment, leave and benefits policies.

That possibility has generated questions about what will happen to accrued vacation, sick leave and other benefits held by employees who make the transition.

The restructuring drew scrutiny during Monday’s public comment period, with former Galveston County sheriff’s deputy Kenneth Williams asking commissioners to delay action until residents and employees received additional information.

“This is a major shift in administrative and financial control,” Williams said. “According to a number of citizens, they have not been given a clear explanation of what it means.”

Commissioners removed the agreement from the court’s consent agenda so it could be discussed publicly before the vote.

Precinct 3 Commissioner Hank Dugie said the change is part of a broader effort by the county to reduce expenses while maintaining its tax policies.

“We can’t drop the tax rate to the no-new-revenue rate for 16 years straight without finding efficiencies,” Dugie said. “We’re expecting at least half a million dollars in savings from this change.”

According to county budget documents, $27,133 has been allocated to establish positions associated with the transition, including $19,806 in salaries.

Under the agreement, the county would assume expenses tied to salaries, technology, equipment and other administrative overhead associated with the transferred services. In return, its annual financial contributions to the Health District and Coastal Health & Wellness would be reduced by the value of the services the county provides.

The agreement comes during a period of leadership transition at the Health District.

County Auditor Sergio Cruz resigned Saturday as chair of the Coastal Health & Wellness Governing Board, saying he wanted to avoid an actual or perceived conflict of interest as the county moves toward assuming greater responsibility for administrative and financial operations.

Health District CEO Dr. Philip Keiser is also scheduled to retire Oct. 1.

Monday’s vote does not by itself put the restructuring into effect. The agreement must also receive approval from the United Board of Health.

The board is scheduled to consider the proposal at 11:30 a.m. Thursday in the boardroom of the Mid-County Annex, 9850-A Emmett F. Lowry Expressway.

If approved, the agreement is scheduled to take effect Sept. 24.