COBI 2015 - Administration

Overview
Issues
Financials

Sources Uses

FY 2016 Appropriation

Insurance Administration is comprised of the Office of the Commissioner and the Administration Division in the Insurance Department. This program supports all divisions within the department, as well as the public, and ensures the department is meeting all National Association of Insurance Commissioners (NAIC) standards for certification and regulation. Functions include budget, finance, policy, regulation, compliance with Utah code and administrative rule.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $9,048,500 from all sources for Administration. This is a 2.4 percent reduction from Fiscal Year 2015 revised estimated amounts from all sources.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Attorney General Dedicated Credit Adjustments$5,200$0

OngoingOne-TimeFinancing Source

$5,200$0GFR - Insurance Department Account

This item designates additional funding appropriated to an agency to pay higher costs for Attorney General services, due to statewide and AG-specific compensation increases.

Federal Fund Transfer from Comprehensive Health Insurance Pool$0$374,000

OngoingOne-TimeFinancing Source

$0$374,000Federal Funds

The Comprehensive Health Insurance Pool is in the close out process. Transferring the remaining federal funds will allow the Insurance Department to close out the program.

Insurance Cancellation and Nonrenewal Amendments$0$18,300

OngoingOne-TimeFinancing Source

$0$18,300GFR - Ins. Dep't, One-time

Enacting this bill could reduce year-end transfers to the General Fund one-time in FY 2015 by $18,300. Enacting this bill could cost the Department of Insurance $18,300 one-time in FY 2015 from the Insurance Department Restricted Account to review the new forms required in the bill.. Spending from the Insurance Department Restricted Account impacts year-end transfers to the General Fund.

Insurance Modifications$9,000$6,000

OngoingOne-TimeFinancing Source

$9,000$0GFR - Insurance Department Account

$0$6,000GFR - Ins. Dep't, One-time

Enactment of this bill would reduce annual transfers from the Captive Insurance Restricted Account to the General Fund by $600,000 annually beginning in FY 2018. There will be a corresponding increase in the balance of the Captive Insurance Restricted Account subject to appropriations by the Legislature which may be used to cover projected cost increases in the program. Insurance Department Restricted Fund revenue could increase by $6,000 one-time in FY 2015 and by $9,000 ongoing from the service contract provider fees established in the legislation. Enactment of this legislation could cost the Insurance Department $6,000 one-time in FY 2015 and $9,000 ongoing beginning in FY 2016 from the Insurance Department Restricted Account for administration and review of service contract provider licenses.

Intent Language

HB0003: Item 71

Under Section 63J-1-603 of the Utah Code the Legislature intends that appropriations for Insurance Department Administration not lapse at the close of Fiscal Year 2015. Any appropriations related to the transfer of federal funds of $374,000 from the closing of the Comprehensive Health Insurance Pool program and $100,000 for general program revenues shall not lapse at the close of FY 2015. Transferred funds from the Comprehensive Health Insurance Pool program shall be utilized for any late claims from former program participants, audit costs, legal fees related to the program and health outreach activities. Any other funds are for replacement of computers, printers and copy machines, and scanners for electronic storage of documents.

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Funding Source

Expenditure Category

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Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	5,357,800	0	0	0	0	0	0	0	0
General Fund, One-time	(25,000)	0	0	0	0	0	0	0	0
Federal Funds	166,100	837,900	988,400	978,400	2,438,100	(951,300)	1,486,800	(392,200)	1,094,600
GFR - Insurance Department Account	0	5,894,900	6,217,100	6,550,000	7,704,200	0	7,704,200	199,100	7,903,300
GFR - Ins. Dep't, One-time	0	0	104,200	30,900	(222,600)	24,300	(198,300)	248,900	50,600
Beginning Nonlapsing	0	0	0	100,000	0	282,100	282,100	(282,100)	0
Closing Nonlapsing	0	0	(100,000)	(282,100)	0	0	0	0	0
Lapsing Balance	(82,700)	(163,100)	(335,600)	0	0	0	0	0	0
Total	$5,416,200	$6,569,700	$6,874,100	$7,377,200	$9,919,700	($644,900)	$9,274,800	($226,300)	$9,048,500

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	4,379,400	4,738,800	5,072,400	5,550,800	6,618,000	51,800	6,669,800	394,100	7,063,900
In-state Travel	1,700	5,800	4,700	10,100	25,800	(10,300)	15,500	0	15,500
Out-of-state Travel	31,000	91,300	120,800	119,100	186,800	(21,300)	165,500	9,500	175,000
Current Expense	337,500	502,000	439,800	725,800	1,737,000	(313,000)	1,424,000	(648,500)	775,500
DP Current Expense	658,300	1,231,800	1,236,300	960,100	1,352,100	(352,100)	1,000,000	18,600	1,018,600
DP Capital Outlay	0	0	0	11,300	0	0	0	0	0
Capital Outlay	8,300	0	100	0	0	0	0	0	0
Total	$5,416,200	$6,569,700	$6,874,100	$7,377,200	$9,919,700	($644,900)	$9,274,800	($226,300)	$9,048,500

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Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	65	65	65.50	66	68	(2)	66	0	66
Actual FTE	65	62.80	64.30	67.40	0	0	0	0	0

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.