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 Health and Mental Hygiene appropriation bill.
State Operations
The Governor proposes a State Operations Special Revenue Other appropriation of $160,398,000, a
net increase of $34,979,000 or 27.9 percent from State Fiscal Year (SFY) 2002-03. This
includes:
- a net decrease of $1,740,000 in the Administration and Consumer Services Program due to the attrition
of 17 Full Time Equivalent (FTE) positions;
- a decrease of $1,958,600 for fringe benefit requirements, rent increases, and non-recurring costs of
the agency's move to One Commerce Plaza;
- an increase of $3,000,000 for the Disaster Preparedness and Response Unit, which will have primary
responsibilities for investigating fraud and money laundering and will require the hiring of 29 FTE
positions;
- a suballocation of $447,000 to the Banking Department's Holocaust Claims Processing Office. These
monies will be used to continue efforts to provide restitution of insurance policies to Holocaust victim
survivors. This represents an increase of $50,000 from SFY 2002-03;
- a suballocation of $1,070,000 to other State agencies for services and expenses to develop and
promulgate fire safety standards for cigarettes. This is the same amount allocated in SFY 2002-03; and
- a suballocation of $4,871,000 to the Department of Law for services and expenses associated with
the implementation of Executive Order 109 appointing the Attorney General as special prosecutor for no
fault auto insurance fraud. This represents an increase of $212,000 from SFY 2002-03.
The Governor proposes a total suballocation of $17,687,000 to the Department of State for the following
initiatives:
- $5,949,000 for expenses incurred for the enforcement, development and maintenance of the State
Building Code. This represents the same amount provided in SFY 2002-03;
- $500,000 for expenses related to the Urban Search and Rescue Program which reflects an increase of
$250,000 from SFY 2002-03;
- $8,665,000 for services and expenses related to the Office of Fire Prevention and Control and the
State Fire Reporting System. This represents an increase of $130,000 from SFY 2002-03;
- $1,036,000 for Aid to Localities payments related to municipalities fighting fires on State property,
expenses incurred under the State's mobilization and mutual aid plan, and for payment of training costs
of certain first-line supervisors of paid fire departments at the New York City Fire Training Academy.
This represents an increase of $300,000 from SFY 2002-03;
- A new suballocation in the amount of $523,000 for services and expenses related to the repair and
rehabilitation of the State Fire Training Academy; and
- $1,014,000 for expenses related to fire inspections and fire safety training programs at privately
operated colleges and universities in New York State, which reflects an increase of $500,000 from SFY
2002-03.
There are $35,314,000 in suballocations to the Department of Health and the Office of Inspector General
as follows:
- $271,000 to the Department of Health for expenses incurred in the development of inpatient hospital
rates for insurance payments. This represents the same amount provided in SFY 2002-03;
- $300,000 to the Department of Health for expenses incurred in the certification of managed care
programs, which reflects the same amount provided in SFY 2002-03;
- $300,000 to the Department of Health for expenses incurred in the approval of managed care
implementation plans. This reflects the same amount provided in SFY 2002-03; and
- $443,000 to the Office of Inspector General for the services and expenses.
The following suballocations reflect a shift from the General Fund:
- a new suballocation in the amount of $10,000,000 to the Department of Health for services and
expenses incurred for implementation of a Forge-Proof Pharmaceutical Prescription Program;
- a new suballocation in the amount of $10,000,000 to the Department of Health for services and
expenses of the Center for Community Health Program;
- A new suballocation in the amount of $8,000,000 to the Department of Health for State aid to
municipalities for Childhood Immunizations against German Measles, and other communicable diseases; and
- A new suballocation in the amount for $6,000,000 to the Department of Health for services and
expenses related to the enhanced Newborn Genetic Screening Program.
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