TO: | Honorable Allan Ritter, Chair, House Committee on Pensions & Investments |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB3120 by Alonzo (Relating to the operation and funding of certain group coverage programs for certain educational employees and their dependents.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($1,437,167,252) |
2005 | ($1,850,353,340) |
2006 | ($1,905,863,941) |
2007 | ($1,963,039,859) |
2008 | ($2,021,931,055) |
Fiscal Year | Probable Savings/(Cost) fromGENERAL REVENUE FUND 1 |
---|---|
2004 | ($1,437,167,252) |
2005 | ($1,850,353,340) |
2006 | ($1,905,863,941) |
2007 | ($1,963,039,859) |
2008 | ($2,021,931,055) |
It is assumed that school districts accounting for 80 percent of public school employees would participate in the TRS group health insurance program during the first year of implementation (i.e. fiscal year 2004) and that 100 percent of school districts would participate during the second and subsequent years of implementation. It is also assumed that 5 percent of eligible active school employees would elect to waive coverage under the TRS group health insurance program and the remaining 95 percent would choose the highest insurance coverage available (TRS-ActiveCare 3). This represents an average monthly contribution of $485 for 460,834 employees in fiscal year 2004, and the same contribution for 593,324 employees in fiscal year 2005. The overall cost based on these assumptions are $2,681.4 million in fiscal year 2004 and $3,452.3 million in fiscal year 2005.
In these estimates, the state’s cost for employee premium coverage is reduced by the contribution made by local school districts to the cost of health insurance, and by the deletion of the current requirement to fund $75 per month through the school finance formula. These offsets total about $1,244.2 million in fiscal year 2004 and $1,602 million in fiscal year 2005. Subtracting these offsets from the overall cost cited above results in state General Revenue costs of $1,437.2 in fiscal year 2004 and $1,850.3 million in fiscal year 2005
Source Agencies: | 304 Comptroller of Public Accounts, 323 Teacher Retirement System, 356 Texas Ethics Commission
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LBB Staff: | JK, JO, RR, UP, RN
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