123rd MAINE LEGISLATURE
		LD 201		LR 781(02)
	An Act To Increase the State's Share of Retired Teachers' Health Insurance
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Labor
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$3,806,299	$4,140,457	$4,430,289	$4,740,410
Appropriations/Allocations
	General Fund		$3,806,299	$4,140,457	$4,430,289	$4,740,410
Fiscal Detail and Notes
	This bill includes additional General Fund appropriations of $3,806,299 in fiscal year 2007-08 and $4,140,457 in fiscal year 2008-09 for the Retired Teachers' Health Insurance program within the Department of Education to increase the State's contribution for health insurance for retired teachers from 45% to 50% effective January 1, 2007 and from 50% to 55% effective January 1, 2008.
	The Governor's Recommended Budget for the 2008-2009 biennium proposes to increase the baseline budget for the Retired Teachers' Health Insurance program by $1,139,177 in fiscal year 2007-08 and $2,358,087 in fiscal year 2008-09 to fund projected increases in premium rates and retired teacher enrollment.  This fiscal note assumes that the Governor's recommended increases are approved and calculates the additional cost based on the adjusted FY 2007-08 and FY 2008-09 levels.
	This bill is not an emergency, consequently, any funds appropriated for fiscal year 2006-07 would not become effective before June 30, 2007 and would lapse to the General Fund.  Therefore, the fiscal year 2006-07 funding required in order to increase the state's contribution to 45% as of January 1, 2007 has been added to the fiscal year 2007-08 appropriation in order for the funds to be available for expenditure for the intended purpose.