Department of Insurance
The enacted budget passed by the Legislature made the following changes to the Executive Budget (analysis as of March 30, 2006):
· Decreases the maintenance undistributed appropriation in the Regulation program by $3.6 million. Most of the decrease was for sub-allocations to the Division of Criminal Justice Services and the Department of Health. However, the appropriation is still $6.3 million more than the enacted appropriation for SFY 2005-06.
The Senate and Assembly made the following changes to the Executive Budget (analysis as of March 15, 2006):
Senate:
- Decreased SRO funding by $3.6 million including: reducing the Regulation Program’s personal services appropriation by $1 million and its maintenance undistributed appropriation by $2 million. The Report of the Senate Finance Committee indicates that $1.6 million of this reduction would have supported an additional 17 positions.
Assembly:
- Decreased the maintenance undistributed appropriation in the Regulation Program SRO account by $12.5 million. The Assembly has been critical of the sub-allocation of these funds to other State agencies.
The Executive Budget recommends (analysis as of January 24, 2006):
· Proposes an FTE level of 923, which is an increase of 5 in the Regulation Program.
· Proposes an All Funds increase of $16.3 million (9.2 percent).
· Proposes a personal service increase of $996,000 (12%) in the Administration program, but no increase in the FTE level in this program.
· Proposes a personal service increase of $2.8 million in the Regulation Program, associated in part with 5 additional FTEs.
· Proposes legislation that would increase the maximum amount for financial penalties that could be applied for violations of State Insurance Law and authorize the Superintendent to issue cease-and-desist orders for any violations to the Insurance Law.
Program Details-State Operations
Enacted
Proposed
Enacted
Change in
Percent
Program
2005-06 Budget
2006-07 Budget
2006-07 Budget
Appropriation
Change
All Funds
$177,819,000
$194,148,000
$190,403,000
$12,584,000
7.1%
Special Revenue-Other (SRO)
$177,819,000
$194,148,000
$190,403,000
$12,584,000
7.1%
Administration (SRO)
$13,139,000
$14,880,000
$14,780,000
$1,641,000
12.5%
Personal Services
$8,084,000
$9,080,000
$9,080,000
$996,000
12.3%
Non-Personal Services
$1,123,000
$1,214,000
$1,114,000
($9,000)
-0.8%
Fringe benefits
$3,658,000
$4,268,000
$4,268,000
$610,000
16.7%
Indirect Costs
$274,000
$318,000
$318,000
$44,000
16.1%
Consumer Services (SRO)
$12,212,000
$12,298,000
$12,298,000
$86,000
0.7%
Personal Service
$7,839,000
$7,789,000
$7,789,000
($50,000)
-0.6%
Nonpersonal Service
$560,000
$576,000
$576,000
$16,000
2.9%
Fringe Benefits
$3,547,000
$3,660,000
$3,660,000
$113,000
3.2%
Indirect Costs
$266,000
$273,000
$273,000
$7,000
2.6%
Regulation (SRO)
$152,468,000
$166,970,000
$163,325,000
$10,857,000
7.1%
Personal Service
$46,286,000
$49,062,000
$49,062,000
$2,776,000
6.0%
Nonpersonal Service
$20,652,000
$20,554,000
$20,554,000
($98,000)
-0.5%
Fringe Benefits
$20,944,000
$22,831,000
$22,831,000
$1,887,000
9.0%
Maintenance Undist.
$62,792,000
$72,806,000
$69,161,000
$6,369,000
10.1%
Indirect Costs
$1,794,000
$1,717,000
$1,717,000
($77,000)
-4.3%