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Passage of this bill will require a General Fund appropriation of $34,000 to the Division of Purchasing for FY 1998 and $30,000 for FY 1999 for compliance costs associated with the provisions of the bill. In addition, the Department of Human Services will require increased General Fund in the amount of $2,909,000 and increased Federal Funds in the amount of $1,693,700 in FY 1998 and FY 1999 for anticipated contract price increases. The State Office of Education has estimated that School Districts will experience increased construction costs in the amount of $4,160,000 annually. There may also be cost increases in other certain state contracts where the vendor passes on the cost of insurance to the state. However, it is assumed that large state providers are already providing health care to employees. Therefore, it is estimated that any contract cost increases to the state will be related to smaller vendors, and private non-profit companies.

FY 98 Approp. FY 99 Approp. FY 98 Revenue FY 99 Revenue
General Fund $2,943,000 $2,939,000 $0 $0
Federal Funds $1,693,700 $1,693,700 $0 $0
TOTAL $4,636,700 $4,632,700 $0 $0

Office of the Legislative Fiscal Analyst

2/24/97 6:10:30 p.m.

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