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122nd MAINE LEGISLATURE |
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LD 1021 |
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LR 0263(05) |
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An Act
To Implement Task Force Recommendations Relating to Parity and Portability of
Benefits for Law Enforcement Officers and Firefighters |
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Fiscal Note for Bill as Amended by Committee
Amendment " " |
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Committee: Labor |
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Fiscal Note Required: Yes |
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Fiscal Note |
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Projections |
Projections |
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2005-06 |
2006-07 |
2007-08 |
2008-09 |
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Net Cost
(Savings) |
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General Fund |
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$0 |
$0 |
$3,413,255 |
$3,810,148 |
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Appropriations/Allocations |
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General Fund |
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$0 |
$0 |
$3,413,255 |
$3,810,148 |
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Other Funds |
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$0 |
$81,000 |
$109,392 |
$111,894 |
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Revenue |
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Other Funds |
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$0 |
$587,250 |
$1,230,876 |
$1,289,958
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Current Cost -
State Mandate |
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State Mandate |
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New or Expanded Activity |
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Unit Affected |
Costs |
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Requires
counties and municipalities to collect contributions from participating
employees and remit these contributions to the State. The increase in
workload to the counties and municipalities generated by these requirements
is a state mandate pursuant to the Maine Constitution. The additional costs are expected to be
insignificant. |
Municipality |
Insignificant |
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County |
Insignificant |
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Fiscal Detail
and Notes |
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The
bill's subsidy provisions would take effect July, 1, 2007. Assumes a total subsidy cost beginning in
fiscal year 2007-08 of $4.5 million including: $3 million for the State's
payment of a 45% subsidy toward the cost of health insurance for eligible,
pre-Medicare, retired law enforcement officers and firefighters based on the
following assumptions: approximately 950 participants at an estimated average
subsidy cost of $265 per participant per month; and approximately $1.5
million per year for additional State Employee Health Program costs resulting
from the enrollment of a portion of these participants in the State plan. The
subsidy costs would be partially offset by the 1.5% of salary assessment. |
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Beginning
January 1, 2007, the bill provides for a 1.5% assessment to be paid by
participating active law enforcement officers and firefighters to help offset
the costs of the program. For the
purposes of this fiscal note, it is assumed that 90% of the estimated 2,900
active law enforcement officers and firefighters would participate, paying
the 1.5% assessment on an average salary of $30,000. |
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Provides
a FY 2006-07 allocation of $81,000 from the Firefighters and Law Enforcement
Officers Health Insurance Program Fund, an Internal Services Fund, for the costs associated with the start up
and administration of the program including: $26,000 for the establishment of
an Employee Benefits Technician position (beginning January 1, 2007) and
$55,000 for other costs related to start up and administration. |
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Projections |
Projections |
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2007-08 |
2008-09 |
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Total Estimated Subsidy |
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$4,534,739 |
$4,988,212 |
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Estimated Administrative Costs |
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$109,392 |
$111,894 |
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Total
Estimated Costs |
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$4,644,131
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$5,100,106
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Total Estimated
Collections from Assessment |
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($1,230,876) |
($1,289,958) |
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General Fund
Subsidy Net of Assessments |
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$3,413,255
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$3,810,148
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