Legislative Report #05-24

Report 05-24
July 15, 2005

BUDGET NEGOTIATIONS STALLED?

There appeared to be little progress this week in the negotiations on the proposed state budget for 2005-07. House and Senate leaders of the conference committee have indicated that there are significant differences on funding for public education and extension of temporary taxes.

On Thursday, the House Rules Committee approved another extension of the resolution continuing state operations. The current continuing resolution expires on Wednesday, July 20. The proposed extension would continue operations through Friday, August 5.

The delay in adoption of the budget means that Cost-of-Living Adjustments for retired and active employees will not be included in July pensions and payroll checks. The delayed COLAs will be paid retroactively to July when the budget finally is approved.

COMMITTEE ACTIVITY

The House Pensions and Retirement Committee met on Wednesday and approved three bills. These bills are summarized below.

House Bill 1653: Mandatory COLA for TSERS Retirees
The Committee approved a committee substitute for the original bill. The substitute authorizes a legislative study of mandatory COLAs to be conducted by a 10-member committee. The committee would be required to submit a final report of findings and recommendations on or before the convening of the 2006 regular Session of the General Assembly. The substitute bill was referred to the House Rules Committee.

Senate Bill 140: Amend Firemen's Relief Fund Requirement
This bill shortens the length of service from 5 years to 2 years for a destitute member fireman to qualify for financial assistance from the Fund. The bill was approved by the Committee and later re-referred to the Committee on Insurance.

Senate Bill 148: Death Benefits for Part-Time Law Enforcement Officers
This bill extends the death benefit coverage to part time and temporary law enforcement and detention officers killed in the line of duty. Both state and local government officers are covered. The bill was approved by the Committee and re-referred to the Appropriations Committee.