2001 Yellow Book
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INSURANCE DEPARTMENT

                                      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.


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