Department of Insurance

The Enacted Budget passed by the Legislature on May 1, 2003 makes the following changes to the Executive Budget:

·        Reduces personal services in the Regulation Program by $1,945,000.  Reduces nonpersonal services by $365,000 and fringe benefits by $690,000. It is unclear whether this will affect current staffing levels in the department.

·        Eliminates $10 million for a proposed forge proof pharmaceutical prescription program in the Regulation Program.

The Executive Budget recommends (analysis as of February 7, 2003):

·        An FTE level of 908.  This represents a net reduction of 16 FTEs, including a reduction of 28 FTEs in SFY 2003-04 from the estimated 3/31/03 level in the SFY 2002-03 Executive Budget, and an increase of 12 FTEs in SFY 2003-04.  In SFY 2003-04, 3 FTEs will be eliminated in the Administration Program and 3 FTEs will be eliminated in the Consumer Services Program.  The Regulation Program shows a reduction of 20 FTEs in SFY 2002-03 and an increase of 18 FTEs in 2003-04.  We suspect that the 20 FTE reductions are unfilled vacancies, while the increase reflects creation of a new Insurance Disaster Preparedness and Response Unit.  According to the Assembly Ways and Means Committee, this new unit will have a staff of 29 FTEs and a $3 million total appropriation, and will have primary responsibilities for investigating fraud and money laundering.

·        A $156,000 reduction in personal service (reflecting the elimination of 3 positions) and a $3.5 million reduction (79%) in nonpersonal service in the Administration Program.  According to the Assembly Ways and Means Committee, most of this decrease relates to non-recurring costs of the agency’s move to One Commerce Plaza in Albany.

·        A $236,500 reduction in personal service in the Consumer Services Program reflecting the elimination of 3 positions.

·        A $1.7 million increase in personal service in the Regulation Program, reflecting the addition of 18 positions which relate to the new Insurance Disaster Preparedness and Response Unit.  Since that new unit has 29 FTEs, this indicates that 11 FTEs will be reduced elsewhere in the Regulation program.

·        An increase of $35.7 million in the Maintenance Undistributed appropriation in the Regulation program, including the following increases:

-         $10 million for a new suballocation to the Department of Health (DOH) for implementation of a forge-proof pharmaceutical prescription program.

-         $10 million for a new suballocation to DOH for the Center for Community Health Program.

-         $8 million for a new suballocation to DOH for state aid to municipalities for an immunization program.

-         $6 million for a new suballocation to DOH for enhanced newborn screening.

-         $500,000 for suballocation to the Department of State (DOS) for fire inspections and fire safety training programs at privately operated colleges and universities in NYS ($1,014,000 total suballocation).

-         $250,000 for suballocation to DOS for the urban search and rescue program ($500,000 total suballocation).

-         $130,000 for suballocation to DOS for the Fire Prevention and Control Program and the State Fire Reporting System ($8,665,000 total suballocation).

-         $300,000 for suballocation to DOS for various municipalities for fighting fires on state property and various training costs ($1,036,000 total suballocation).

-         $50,000 for suballocation to the Banking Department for the Holocaust Claims Processing Office ($447,000 total suballocation).

-         $235,000 for suballocation to the Office of the Inspector General ($443,000 total suballocation).