Legislative Report #05-16

Report 05-16
May 20, 2005

FURTHER BUDGET REDUCTIONS IN THE HOUSE?

The co-chairmen of the House Appropriations Committee continued informal discussions of budget options during the week. The Appropriations subcommittees were given spending targets that generally are lower than the expenditures contained in the proposed Senate budget (Senate Bill 622).

The lower targets suggest that the House will not accept at least some of the state tax and fee increases that were included in the Senate budget. The tax and fee provisions approved by the Senate are projected to produce nearly $800 million in 2005-06. This total includes an estimated $413 million from the conversion of the temporary ½% state sales tax to a permanent levy.

COMMITTEE ACTIVITIES

This week was relatively quiet regarding legislation of interest to retirees. Actions on two bills that were heard in committee are summarized below.

House Bill 1524: Competitive Selection/Supplemental Insurance (primary sponsors-Reps. Wilson, Bell, and Coleman)
This bill formalizes the process used by the Department of State Treasurer for selecting providers of supplemental insurance programs that are offered to retired governmental employees. The Department currently offers retiree group vision care and dental insurance.

The bill received a favorable report from the House Insurance Committee. The bill will be scheduled for consideration on the House floor next week.

Senate Bill 1082: Health Benefits for Disabled Local LEO (sponsor-Sen. D. Berger)
The bill requires local governments to provide health insurance benefits to local law enforcement officers who are receiving a disability retirement allowance on the same basis as these benefits are offered to other retired employees. The health insurance benefits must be provided to the disabled officers without regard to years of creditable service.

The bill was discussed by the Senate Commerce Committee on Thursday. However, no action was taken pending clarification of several provisions that were questioned by Committee members.