121st Maine Legislature
		Office of Fiscal and Program Review
		LD 32
		An Act to Provide a 5% Increase in the State's Contribution for Insurance for Retired Teachers
		LR 0034(02)
		Fiscal Note for Bill as Amended by Committee Amendment
		Committee: Labor
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings)
	General Fund		$0	$2,179,083	$2,765,256	$3,509,110
Appropriations/Allocations
	General Fund		$0	$2,179,083	$2,765,256	$3,509,110
Fiscal Detail and Notes
	This bill includes a General Fund appropriation of $2,179,083 in fiscal year 2004-05 for the Retired Teachers' Health Insurance program within the Department of Education to fund the increase in the State's contribution from 40% to 45% beginning July 1, 2004.  The costs reflected above assume the State's contribution for health insurance for retired teachers increases from 35% to 40% effective July 1, 2003.  The Governor's proposed Current Services budget for the 2004-2005 biennium postpones the July 1, 2003 increase until July 1, 2005.  If that proposal is approved by the Legislature, the cost of this measure will increase by an additional $1,713,059 in fiscal year 2003-04 and $2,179,083 in fiscal year 2004-05.  Projections for fiscal year 2005-06 and fiscal year 2006-07 assume an average increase in costs of 17.5% per year and enrollment growth of 8% per year based on estimates provided by the Division of Employee Health and Benefits.