NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.
| SPONSOR: | Wallace | DATE TYPED: | 02/25/99 | HB | 713 | ||
| SHORT TITLE: | Change Benefit Contribution Levels | SB | |||||
| ANALYST: | Carrillo | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| $ 2,399.4 | Rec | various | |||
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
New Mexico Public School Insurance Authority
Human Services Department
LFC Files
General Services Department
SUMMARY
Synopsis of Bill
House Bill 713 proposes to change the employer contribution levels paid from public funds. This would lower the amount paid by public employees. The proposed legislation would increase the current salary brackets by $5.0. The bill excludes institutions of higher education and public schools.
Significant Issues
According to General Services Department (GSD) staff, the salary brackets have not been adjusted their inception in 1986. At that time, the employer's contribution represented approximately 67 percent of the group health costs. Currently, the employer's contribution represents less than 64 percent of the group health costs.
GSD staff further indicates an estimated 10,500 of the 18,040 enrolled state employees would benefit from House Bill 713. Group health rates will go up July 1 and the proposed adjustment will lessen the impact of the increase for those employees whose current annual salary is more than $15.0 and less than $30.0.
FISCAL IMPLICATIONS
The estimated FY2000 additional contribution cost is $2,399.4. A portion of the additional cost may be available in the employee benefits FY2000 budget. GSD staff believes costs for FY2000 are lower than the FY2000 budget recommendations.
Below is a comparison of the existing and proposed salary brackets:
| Existing Salary Bracket | Proposed Salary Bracket | Percentage Contribution |
| Less than 15,000 | Less than 20,000 | 75 percent |
| Less than 20,000 | Less than 25,000 | 70 percent |
| Less than 25,000 | Less than 30,000 | 65 percent |
| More than 25,000 | More than 30,000 | 60 percent |
WJC/njw