The General Assembly this week gave final approval to the state budget for 2009-11 and initiated discussion of possible adjournment this week. As of Friday morning, Senate leaders indicated that the Senate planned to adjourn by Friday night. The House will return on Monday to deal with a few remaining bills and likely will adjourn on Tuesday or Wednesday. The Senate may also return on Wednesday to wrap up any loose ends.
The approved biennial state budget contains funding to maintain current benefits for state retirees. The Appropriations Act of 2009 includes the following General Fund appropriations:
State Health Plan
The budget law appropriates $132.2 million in 2009-10 and $276.2 million in 2010-11 to maintain premium-free State Health Plan coverage for active and retired employees.
Retirement Systems Contributions
The budget provides General Fund appropriations of $21 million in 2009-10 and $160 million in 2010-11 to maintain the Teachers and State Employees Retirement System (TSERS). The amount for the second year is viewed as an initial contribution that likely will be increased to $340+ million next year after the state actuary provided final audit figures for calendar year 2008.
The budget also includes $1.3 million for each year of the biennium for the Consolidated Judicial Retirement System.
House Bill 934 which would authorize the Board of Trustees to approve a 1.0% COLA for local retirees remains in the House Appropriations Committee. It is not likely that the committee will meet again to take up any more bills although Rep. Tucker who sponsored HB 934 has requested that the bill be heard.
State Health Plan Pharmacy Benefits
The Senate amended House Bill 1274 0n Monday to clarify an important provision of the law modifying the State Health Plan (Senate Bill 287) that was approved earlier this year. The amendment requires that Plan members will be charged the lesser of the co-payments set by the Plan or a pharmacy’s cash price to the general public for any particular prescription drug. Any pharmacies that charge an amount that violates this requirement may be removed from the Plan’s pharmacy network. This amendment addresses reported situations where members on the State Health Plan were being charged the full co-payment amount for prescriptions that were being sold to the general public at a cash price lower than the Plan’s co-pay. House Bill 1274 has been ratified and sent to the Governor for her signature.
SESSION NEARS ADJOURNMENT
A LOCAL COLA?