122nd MAINE LEGISLATURE
		LD 1021		LR 0263(05)
	An Act To Implement Task Force Recommendations Relating to Parity and Portability of Benefits for Law Enforcement Officers and Firefighters
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Labor
	Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2005-06	2006-07	2007-08	2008-09
Net Cost (Savings)
	General Fund		$0	$0	$3,413,255	$3,810,148
Appropriations/Allocations
	General Fund		$0	$0	$3,413,255	$3,810,148
	Other Funds		$0	$81,000	$109,392	$111,894
Revenue
	Other Funds		$0	$587,250	$1,230,876	$1,289,958
Current Cost - State Mandate
State Mandate
	New or Expanded Activity				Unit Affected	Costs
	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
					County	Insignificant
Fiscal Detail and Notes
	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.
	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.
	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.
					Projections	Projections
					2007-08	2008-09
	Total Estimated Subsidy				$4,534,739	$4,988,212
	Estimated Administrative Costs				$109,392	$111,894
	Total Estimated Costs				$4,644,131	$5,100,106
	Total Estimated Collections from Assessment				($1,230,876)	($1,289,958)
	General Fund Subsidy Net of Assessments				$3,413,255	$3,810,148