Adjusted Executive
Appropriation Request Percent
2000-01 2001-02 Change Change
AGENCY SUMMARY
Special Rev.-Other 108,432,200 117,288,000 8,855,800 8.17%
Total for AGENCY SUMMARY: 108,432,200 117,288,000 8,855,800 8.17%
STATE OPERATIONS
Special Rev.-Other 108,432,200 117,288,000 8,855,800 8.17%
Total for STATE OPERATIONS: 108,432,200 117,288,000 8,855,800 8.17%
Administration
Special Rev.-Other 11,107,000 13,503,000 2,396,000 21.57%
Total for Program: 11,107,000 13,503,000 2,396,000 21.57%
Regulation of Insurance Organizations
Special Rev.-Other 89,712,600 96,168,000 6,455,400 7.20%
Total for Program: 89,712,600 96,168,000 6,455,400 7.20%
Comsumer Services
Special Rev.-Other 7,612,600 7,617,000 4,400 0.06%
Total for Program: 7,612,600 7,617,000 4,400 0.06%
ALL FUNDS PERSONNEL
BUDGETED FILL LEVELS
Current Requested
Program 2000-01 2001-02 Change
Administration 133 133 0
Regulation of Insurance
Organizations 704 684 (20)
Consumer Services 107 107 0
Total All Other Funds : 944 924 (20)
TOTAL: 944 924 (20)
BUDGET HIGHLIGHTS
(Executive Budget: pp. 369-371)
The Insurance Department is charged with regulating the insurance industry and
ensuring that the interests of insurance consumers, companies and producers are
all considered in rate setting and regulation. The Insurance Department
receives all of its operating revenue from assessments levied on the insurance
industry. The agency is included in the Public Protection and General
Government Budget Bill.
State Operations
The Governor proposes a State Operations Special Revenue-Other appropriation of
$117,288,000, a net increase of $8,855,800 from SFY 2000-01. This includes:
-- a request for $2,000,000 to relocate the Insurance Department from Agency
Building One in Empire State Plaza to One Commerce Plaza and $2,651,000
for salary adjustments and other costs associated with agency operations;
-- a suballocation of $5,550,000 to other state agencies for services and
expenses to develop and promulgate fire safety standards for cigarettes;
-- the continuation of a $500,000 suballocation to the Department of Motor
Vehicles for costs associated with the Highway Safety Initiative. In
addition, the Governor recommends a reappropriation of $1,500,000 from
State Fiscal Year (SFY) 2000-01. This reappropriation is the total of
amounts from the previous three fiscal years;
-- a suballocation of $374,000 to the Holocaust Claims Processing Office.
These monies will be used by the Holocaust Office to continue efforts to
provide restitution of insurance policies to Holocaust victim survivors;
and
-- an overall decrease of 20 Full-time Equivalent funded vacancies for an
estimated savings of ($1,345,000).
The Governor proposes a total suballocation of $14,080,000 to the Department of
State for the following initiatives:
-- $4,939,000 for the enforcement, development and maintenance of the State
Building Code, an increase of $516,000 from SFY 2000-01;
-- $250,000 for the Urban Search and Rescue Program, the same funding as SFY
2000-01;
-- $8,155,000 for services and expenses related to the fire prevention and
control program and the state fire reporting system, an increase of
$1,086,800 from SFY 2000-01; and
-- $736,000 for payments to municipalities fighting fires on State property,
the same amount appropriated by the Legislature in SFY 2000-01.
There are $1,079,000 in suballocations to the Department of Health and the
Office of Inspector General pursuant to the following:
-- $271,000 to the Department of Health for the development of inpatient
hospital rates, an increase of $20,600 from SFY 2000-01;
-- $300,000 to the Department of Health for certification of managed care
programs, an increase of $20,000 from SFY 2000-01;
-- $300,000 to the Department of Health for the approval of managed care
implementation plans, an increase of $20,000 from SFY 2000-01; and
-- $208,000 to the Office of Inspector General, the same amount appropriated
by the Legislature in SFY 2000-01.
Article VII Proposals
The Executive recommends Article VII legislation authorizing the State to use
owner-controlled ("wrap up") insurance on single public construction projects
costing more than $25,000,000, and on multiple public construction projects
costing more than $50,000,000. Currently, private contractors and
subcontractors working on public construction projects purchase their own
insurance. This provision would allow the State to purchase their insurance for
them. The Executive estimates this will save the State $1,000,000 in SFY 2001-
02, and these savings will grow when the program is fully implemented.