Legislative Report

Report #08-09
July 3, 2008

BUDGET AGREEMENT DELAYED

Despite intensive negotiations between House and Senate conferees throughout this week, the General Assembly was unable to reach final agreement on changes to the state budget for 2008-09. The worsening state revenue collection forecast had prompted the Governor to ask the budget negotiators to further reduce proposed expenditures.

On Monday, the General Assembly approved legislation extending certain budget provisions through July 15 to allow continuing operations of government until the amended budget can be approved. Legislative leaders remain optimistic that the budget can be finalized early next week. At this point, both House and Senate remain firm on a 2.2% COLA for state retirees.

AMENDED STATE HEALTH PLAN BILL APPROVED BY HOUSE

The House approved House Bill 2443 on Wednesday. The bill re-writes the statutes authorizing the State Health Plan to recognize the replacement of the single indemnity plan with the three PPO options. HB 2443 also authorizes the Executive Administrator of the Plan to establish a Medicare Advantage option for Medicare eligible Plan members.

The original version of this bill contained a provision to change the State Health Plan year from the current July 1-June 30 year to the calendar year effective January 1, 2009. However, this provision was removed in committee this week because of an unanticipated deficit in the State Health Plan during the 2007-08 Plan year.

House Bill 2443 has been received by the Senate and referred to the Select Committee on Employee Hospital and Medical Benefits.