121st Maine Legislature
		Office of Fiscal and Program Review
		LD 414
		An Act To Require the State To Fully Pay for Health Insurance for Maine's Retired Educators
		LR 0583(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. Fischer
		Committee: Labor
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund			$26,148,996	$33,183,076	$42,109,323
Appropriations/Allocations
	General Fund			$26,148,996	$33,183,076	$42,109,323
Fiscal Detail and Notes
	The costs reflected above assume the State's contribution for health insurance for retired teachers increases from 35% to 40% effective July 1, 2003.  The Governor's proposed Current Services budget for the 2004-2005 biennium postpones the July 1, 2003 increase until July 1, 2005.  If that proposal is approved by the Legislature, the cost of this measure will increase by an additional $1,713,059 in fiscal year 2003-04 and $2,179,083 in fiscal year 2004-05.  Projections for fiscal year 2005-06 and fiscal year 2006-07 assume an average increase in costs of 17.5% per year and enrollment growth of 8% per year based on estimates provided by the Division of Employee Health and Benefits.