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