123rd MAINE LEGISLATURE
		LD 1511		LR 1280(02)
	RESOLUTION, Proposing an Amendment to the Constitution of Maine To Dispose of Unfunded Liabilities in State Retiree Health Care Plans
	Fiscal Note for Bill as Amended by Committee Amendment "     "
	Committee: Labor
	Fiscal Note Required: Yes
Fiscal Note
Current biennium cost increase - General Fund Future biennium cost increase - General Fund
Referendum Costs		Month/Year	Election Type	Question	Length
		Nov-07	General	Referendum	Standard
	The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general election in November. If the number or size of the referendum questions increases the ballot length, an additional appropriation of $8,000 or more may be required.
Fiscal Detail and Notes
	If voters approve the referendum in November the State will be required to make annual payments that will eliminate the unfunded liability of the State retiree health care plans no later than fiscal year 2038.  The Administration's current plan to address this unfunded liability is to increase annual contributions beginning in 2010 to put the State on a 10-year path to making the annual required contributions necessary to fund the liability of the retiree health care plans.   In addition, Part LL of the Committee Amendment to LD 499, would create an irrevocable trust fund for health care plan benefits that would help reduce this unfunded liability by increasing the rate of return on plan assets.
	Under the Administration's plan, contributions for retiree health insurance as a percentage of total State payroll will increase from 5.9% in state fiscal year 2008-09 to 13.4% by state fiscal year 2019 and thereafter until fiscal year 2038.