State Employee Insurance Premiums

Joint Budget Committee. Currently, premiums for state employee coverage that the state is required to pay under the family and medical leave insurance program are paid by credit calculated by the division of family and medical leave insurance (division) based on the state's advance payment of $57 million to the family and medical leave insurance fund from the revenue loss restoration cash fund in May 2022. The bill terminates such payment by credit at the end of fiscal year 2023-24 and requires the state treasurer to transfer $35 million - the estimated unexpended amount of the $57 million - back to the revenue loss restoration fund on or as soon as possible after the date on which the balance of the family and medical leave insurance fund reaches $100 million. Once the state controller has published the comprehensive annual financial report of the state for fiscal year 2023-24, the bill requires the state treasurer to transfer any actual additional unexpended amount of the $57 million to the revenue loss restoration fund. The bill also makes a conforming amendment to the statute in which the revenue loss restoration fund is created.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)