Department of Financial Services

The enacted budget makes the following changes to the Executive Budget (analysis as of March 27, 2012):

·         No changes to the proposed All Funds, State Operations appropriation ($326.6 million).

 

The Executive Budget recommends (analysis January 23, 2012):

Senate and Assembly concur with the Executive proposals.

A SFY 2012-13 workforce of 1,531 FTEs the same number as the adjusted FTE level for 3/31/12. The adjusted FTE level for 3/31/12 is 7 FTEs less than the level proposed in last year’s Executive Budget.  We believe this reduction was due to the Legislature’s rejection of the proposed merger of the Consumer Protection Board into this new department. 

 

The following chart identifies adjustments in the current fiscal year FTEs along with the recommended differences in FY 2012-13 FTEs by program:

 

Program

FY 2011-12 adjustment

Proposed 3/31/13 FTEs

FY 2012-13 change from adjusted

Administration )

0

186

0

Banking (was Consumer Protection)

-7

191

0

Insurance (was Regulation)l

0

1,154

0

Total

-7

1,531

0

 

·         Creating a Foreclosure Relief Unit to assist homeowners, either in foreclosure or at risk of foreclosure.  The assistance will be provided through outreach, educational programs and regulatory assistance. This proposal is revenue neutral which means it will be funded and staffed with existing resources.

·         An All Funds appropriation of $326.63 million, a $2.8 million decrease (-0.8%) from the enacted SFY 2011-12 appropriation.  All of this decrease is in the Insurance program and primarily reflects reduced spending in programs funded by the Department but administered by other State agencies. The largest of these programs is the Forge-Proof Pharmaceutical Prescription program which is decreased by $1.9 million and is administered by the Department of Health.

·         A Personal Services appropriation of $153.82 million, no change from the enacted SFY 2011-12 appropriation.

·         A Contractual Services appropriation of $64.64 million, a decrease of $2.3 million (-3.4%) from the enacted budget appropriation for SFY 2011-12.

·         The Department employed an estimated 146 employees (46 FTEs) under consultant contracts in SFY 2011-12 at a cost of $2.937 million.  It is estimated that the Department will employ 140 consultants (an estimated 34 FTEs) will be employed in SFY 2012-13 at an estimated cost of $2.697 million.  It is important to note that most of the Department’ use of consultants is off-budget as the regulated entities, at least in the Insurance program, directly pay the consultants under contacts approved by the Department.

Department of Financial Services
Program Details-State Operations
  Enacted Proposed Enacted Change in Percent
Program 2011-12 Budget 2012-13 Budget 2012-13 Budget Appropriation Change
All Funds $329,430,823 $326,630,823 $326,630,823 ($2,800,000) -0.8%
Special Revenue-Other $329,430,823 $326,630,823 $326,630,823 ($2,800,000) -0.8%
           
Personal Services $153,820,028 $153,820,028 $153,820,028 $0 0.0%
Contractual Services $66,947,243 $64,641,769 $64,641,769 ($2,305,474) -3.4%
           
Administration (SRO) $38,497,146 $38,497,146 $38,497,146 $0 0.0%
Special Revenue-Other (SRO) $38,497,146 $38,497,146 $38,497,146 $0 0.0%
           
Banking Department Acct - (SRO) $7,568,000 $7,568,000 $7,568,000 $0 0.0%
Personal Service $4,669,000 $4,669,000 $4,669,000 $0 0.0%
Regular $4,639,000 $4,639,000 $4,639,000 $0 0.0%
Holiday/overtime compensation $30,000 $30,000 $30,000 $0 0.0%
Nonpersonal Service $2,899,000 $2,899,000 $2,899,000 $0 0.0%
Supplies and materials $90,000 $90,000 $90,000 $0 0.0%
Travel $110,000 $110,000 $110,000 $0 0.0%
Contractual Services $168,000 $168,000 $168,000 $0 0.0%
Equipment $1,000 $1,000 $1,000 $0 0.0%
Fringe Benefits $2,366,000 $2,366,000 $2,366,000 $0 0.0%
Indirect Costs $164,000 $164,000 $164,000 $0 0.0%
           
Insurance Department Acct - (SRO) $16,829,146 $16,829,146 $16,829,146 $0 0.0%
Personal Service $8,842,151 $8,842,151 $8,842,151 $0 0.0%
Regular $8,837,151 $8,837,151 $8,837,151 $0 0.0%
Holiday/overtime compensation $5,000 $5,000 $5,000 $0 0.0%
Nonpersonal Service $7,986,995 $7,986,995 $7,986,995 $0 0.0%
Supplies and materials $172,372 $172,372 $172,372 $0 0.0%
Travel $342,282 $342,282 $342,282 $0 0.0%
Contractual Services $658,709 $658,709 $658,709 $0 0.0%
Equipment $75,105 $75,105 $75,105 $0 0.0%
Fringe Benefits $6,332,485 $6,332,485 $6,332,485 $0 0.0%
Indirect Costs $406,042 $406,042 $406,042 $0 0.0%
           
State Transmitter of Money Insurance Fund Acct (SRO) $14,000,000 $14,000,000 $14,000,000 $0 0.0%
Nonpersonal Service $14,000,000 $14,000,000 $14,000,000 $0 0.0%
Contractual Services $14,000,000 $14,000,000 $14,000,000 $0 0.0%
           
Banking Dept Settlement - (SRO) $50,000 $50,000 $50,000 $0 0.0%
Nonpersonal Service $50,000 $50,000 $50,000 $0 0.0%
Contractual services $50,000 $50,000 $50,000 $0 0.0%
           
Siezed Assets Acct - (SRO) $50,000 $50,000 $50,000 $0 0.0%
Nonpersonal Service $50,000 $50,000 $50,000 $0 0.0%
Contractual services $25,000 $25,000 $25,000 $0 0.0%
Equipment $25,000 $25,000 $25,000 $0 0.0%
           
Banking Program (SRO) $84,545,000 $84,545,000 $84,545,000 $0 0.0%
Special Revenue-Other (SRO) $84,545,000 $84,545,000 $84,545,000 $0 0.0%
           
Banking Department Acct - (SRO)          
Services & Expenses Related to Consumer Protection Activities $4,820,000 $4,820,000 $4,820,000 $0 0.0%
Personal Service $3,056,000 $3,056,000 $3,056,000 $0 0.0%
Regular $3,049,000 $3,049,000 $3,049,000 $0 0.0%
Holiday/overtime compensation $7,000 $7,000 $7,000 $0 0.0%
Nonpersonal Service $1,764,000 $1,764,000 $1,764,000 $0 0.0%
Supplies and materials $3,000 $3,000 $3,000 $0 0.0%
Travel $100,000 $100,000 $100,000 $0 0.0%
Contractual Services $65,000 $65,000 $65,000 $0 0.0%
Fringe benefits $1,493,000 $1,493,000 $1,493,000 $0 0.0%
Indirect costs $103,000 $103,000 $103,000 $0 0.0%
           
Regulatory Activities of the Department of Financial Services $78,560,000 $78,560,000 $78,560,000 $0 0.0%
Personal Service $41,239,000 $41,239,000 $41,239,000 $0 0.0%
Regular $41,181,000 $41,181,000 $41,181,000 $0 0.0%
Holiday/overtime compensation $58,000 $58,000 $58,000 $0 0.0%
Nonpersonal Service $37,321,000 $37,321,000 $37,321,000 $0 0.0%
Supplies and materials $150,000 $150,000 $150,000 $0 0.0%
Travel $2,138,000 $2,138,000 $2,138,000 $0 0.0%
Contractual Services $12,000,000 $12,000,000 $12,000,000 $0 0.0%
Equipment $573,000 $573,000 $573,000 $0 0.0%
Fringe benefits $21,038,000 $21,038,000 $21,038,000 $0 0.0%
Indirect costs $1,422,000 $1,422,000 $1,422,000 $0 0.0%
           
Suballocation to Office of Inspector General  $227,000 $227,000 $227,000 $0 0.0%
Nonpersonal Service $227,000 $227,000 $227,000 $0 0.0%
Supplies and materials $55,000 $55,000 $55,000 $0 0.0%
Contractual Services $55,000 $55,000 $55,000 $0 0.0%
Travel $55,000 $55,000 $55,000 $0 0.0%
Equipment $62,000 $62,000 $62,000 $0 0.0%
           
Services & Expenses Related to Crime Proceeds Task Force $938,000 $938,000 $938,000 $0 0.0%
Personal Service $400,000 $400,000 $400,000 $0 0.0%
Regular $400,000 $400,000 $400,000 $0 0.0%
Nonpersonal Service $538,000 $538,000 $538,000 $0 0.0%
Contractual Services $340,000 $340,000 $340,000 $0 0.0%
Fringe benefits $182,000 $182,000 $182,000 $0 0.0%
Indirect costs $16,000 $16,000 $16,000 $0 0.0%
           
Insurance Program $206,388,677 $203,588,677 $203,588,677 ($2,800,000) -1.4%
Special Revenue-Other (SRO) $206,388,677 $203,588,677 $203,588,677 ($2,800,000) -1.4%
           
Insurance Department Acct - (SRO) $206,388,677 $203,588,677 $203,588,677 ($2,800,000) -1.4%
Services & Expenses Related to Consumer Services Activities $15,020,607 $15,020,607 $15,020,607 $0 0.0%
Personal Service $9,509,287 $9,509,287 $9,509,287 $0 0.0%
Regular $9,484,287 $9,484,287 $9,484,287 $0 0.0%
Holiday/overtime compensation $25,000 $25,000 $25,000 $0 0.0%
Nonpersonal Service $5,511,320 $5,511,320 $5,511,320 $0 0.0%
Supplies and materials $35,000 $35,000 $35,000 $0 0.0%
Travel $110,000 $110,000 $110,000 $0 0.0%
Contractual Services $405,000 $405,000 $405,000 $0 0.0%
Equipment $26,000 $26,000 $26,000 $0 0.0%
Fringe benefits $4,645,287 $4,645,287 $4,645,287 $0 0.0%
Indirect costs $290,033 $290,033 $290,033 $0 0.0%
           
Regulatory Activities of the Department of Financial Services $111,744,107 $111,744,107 $111,744,107 $0 0.0%
Personal Service $55,985,605 $55,985,605 $55,985,605 $0 0.0%
Regular $55,822,605 $55,822,605 $55,822,605 $0 0.0%
Temporary Service $18,000 $18,000 $18,000 $0 0.0%
Holiday/overtime compensation $145,000 $145,000 $145,000 $0 0.0%
Nonpersonal Service $55,758,502 $55,758,502 $55,758,502 $0 0.0%
Supplies and materials $780,000 $780,000 $780,000 $0 0.0%
Travel $2,690,000 $2,690,000 $2,690,000 $0 0.0%
Contractual Services $21,819,530 $21,819,530 $21,819,530 $0 0.0%
Equipment $600,000 $600,000 $600,000 $0 0.0%
Fringe benefits $28,071,717 $28,071,717 $28,071,717 $0 0.0%
Indirect costs $1,797,255 $1,797,255 $1,797,255 $0 0.0%
           
Enforcement, Development & Maintenance of State Building Code $7,787,513 $7,787,513 $7,787,513 $0 0.0%
Personal Service $4,422,222 $4,422,222 $4,422,222 $0 0.0%
Regular $4,422,222 $4,422,222 $4,422,222 $0 0.0%
Nonpersonal Service $3,365,291 $3,365,291 $3,365,291 $0 0.0%
Supplies and materials $571,000 $571,000 $571,000 $0 0.0%
Travel $300,000 $300,000 $300,000 $0 0.0%
Contractual Services $326,000 $326,000 $326,000 $0 0.0%
Equipment $201,000 $201,000 $201,000 $0 0.0%
Fringe benefits $1,813,291 $1,813,291 $1,813,291 $0 0.0%
Indirect costs $154,000 $154,000 $154,000 $0 0.0%
           
Development of Inpatient Hospital Rate for Insurance Payments $365,000 $365,000 $365,000 $0 0.0%
Personal Service $191,601 $191,601 $191,601 $0 0.0%
Regular $191,601 $191,601 $191,601 $0 0.0%
Nonpersonal Service $173,399 $173,399 $173,399 $0 0.0%
Supplies and materials $19,160 $19,160 $19,160 $0 0.0%
Travel $19,160 $19,160 $19,160 $0 0.0%
Contractual Services $19,160 $19,160 $19,160 $0 0.0%
Equipment $19,160 $19,160 $19,160 $0 0.0%
Fringe benefits $88,136 $88,136 $88,136 $0 0.0%
Indirect costs $8,623 $8,623 $8,623 $0 0.0%
           
Certification of Managed Care Programs $300,000 $300,000 $300,000 $0 0.0%
Personal Service $150,000 $150,000 $150,000 $0 0.0%
Regular $150,000 $150,000 $150,000 $0 0.0%
Nonpersonal Service $150,000 $150,000 $150,000 $0 0.0%
Supplies and materials $20,000 $20,000 $20,000 $0 0.0%
Travel $10,000 $10,000 $10,000 $0 0.0%
Contractual Services $35,000 $35,000 $35,000 $0 0.0%
Equipment $10,000 $10,000 $10,000 $0 0.0%
Fringe benefits $69,000 $69,000 $69,000 $0 0.0%
Indirect costs $6,000 $6,000 $6,000 $0 0.0%
           
Approval of Managed Care Implementation Programs $300,000 $300,000 $300,000 $0 0.0%
Personal Service $150,000 $150,000 $150,000 $0 0.0%
Regular $150,000 $150,000 $150,000 $0 0.0%
Nonpersonal Service $150,000 $150,000 $150,000 $0 0.0%
Supplies and materials $20,000 $20,000 $20,000 $0 0.0%
Travel $10,000 $10,000 $10,000 $0 0.0%
Contractual Services $35,000 $35,000 $35,000 $0 0.0%
Equipment $10,000 $10,000 $10,000 $0 0.0%
Fringe benefits $69,000 $69,000 $69,000 $0 0.0%
Indirect costs $6,000 $6,000 $6,000 $0 0.0%
           
Urban Search and Rescue Programs $597,301 $497,301 $497,301 ($100,000) -16.7%
Personal Service $161,596 $161,596 $161,596 $0 0.0%
Regular $161,596 $161,596 $161,596 $0 0.0%
Nonpersonal Service $435,705 $335,705 $335,705 ($100,000) -23.0%
Supplies and materials $125,000 $75,000 $75,000 ($50,000) -40.0%
Travel $100,000 $50,000 $50,000 ($50,000) -50.0%
Contractual Services $100,000 $100,000 $100,000 $0 0.0%
Equipment $61,000 $61,000 $61,000 $0 0.0%
Fringe benefits $45,705 $45,705 $45,705 $0 0.0%
Indirect costs $4,000 $4,000 $4,000 $0 0.0%
           
Fire Prevention, Control Program, State Fire Reporting System $15,241,739 $15,241,739 $15,241,739 $0 0.0%
Personal Service $8,385,274 $8,385,274 $8,385,274 $0 0.0%
Regular $8,385,274 $8,385,274 $8,385,274 $0 0.0%
Nonpersonal Service $6,856,465 $6,856,465 $6,856,465 $0 0.0%
Supplies and materials $1,000,000 $1,000,000 $1,000,000 $0 0.0%
Travel $1,250,000 $1,250,000 $1,250,000 $0 0.0%
Contractual Services $1,034,000 $1,034,000 $1,034,000 $0 0.0%
Equipment $626,000 $626,000 $626,000 $0 0.0%
Fringe benefits $2,715,465 $2,715,465 $2,715,465 $0 0.0%
Indirect costs $231,000 $231,000 $231,000 $0 0.0%
           
Suballocation to Office of Inspector General  $250,000 $250,000 $250,000 $0 0.0%
Nonpersonal Service $250,000 $250,000 $250,000 $0 0.0%
Supplies and materials $60,000 $60,000 $60,000 $0 0.0%
Travel $60,000 $60,000 $60,000 $0 0.0%
Contractual Services $60,000 $60,000 $60,000 $0 0.0%
Equipment $70,000 $70,000 $70,000 $0 0.0%
           
Developing and Promulgating Fire Safety Standards for Cigarettes  $1,094,781 $1,019,781 $1,019,781 ($75,000) -6.9%
Personal Service $301,647 $301,647 $301,647 $0 0.0%
Regular $301,647 $301,647 $301,647 $0 0.0%
Nonpersonal Service $793,134 $718,134 $718,134 ($75,000) -9.5%
Supplies and materials $232,658 $232,658 $232,658 $0 0.0%
Travel $232,658 $157,658 $157,658 ($75,000) -32.2%
Contractual Services $139,595 $139,595 $139,595 $0 0.0%
Equipment $62,818 $62,818 $62,818 $0 0.0%
Fringe benefits $105,405 $105,405 $105,405 $0 0.0%
Indirect costs $20,000 $20,000 $20,000 $0 0.0%
           
Rehabilitation of the State Fire Training Academy $500,000 $500,000 $500,000 $0 0.0%
Nonpersonal Service $500,000 $500,000 $500,000 $0 0.0%
Supplies and materials $61,095 $0 $0 ($61,095) -100.0%
Travel $61,095 $0 $0 ($61,095) -100.0%
Contractual Services $305,474 $500,000 $500,000 $194,526 63.7%
Equipment $72,336 $0 $0 ($72,336) -100.0%
           
Fire Inspections & Fire Safety Training Programs at Private Colleges/Universities $1,244,765 $1,169,765 $1,169,765 ($75,000) -6.0%
Personal Service $541,939 $541,939 $541,939 $0 0.0%
Regular $541,939 $541,939 $541,939 $0 0.0%
Nonpersonal Service $702,826 $627,826 $627,826 ($75,000) -10.7%
Supplies and materials $126,000 $126,000 $126,000 $0 0.0%
Travel $100,000 $25,000 $25,000 ($75,000) -75.0%
Contractual Services $100,000 $100,000 $100,000 $0 0.0%
Equipment $179,000 $179,000 $179,000 $0 0.0%
Fringe benefits $181,826 $181,826 $181,826 $0 0.0%
Indirect costs $16,000 $16,000 $16,000 $0 0.0%
           
No Fault Auto Insurance Fraud $5,253,413 $5,253,413 $5,253,413 $0 0.0%
Personal Service $2,599,396 $2,599,396 $2,599,396 $0 0.0%
Regular $2,599,396 $2,599,396 $2,599,396 $0 0.0%
Nonpersonal Service $2,654,017 $2,654,017 $2,654,017 $0 0.0%
Supplies and materials $324,705 $324,705 $324,705 $0 0.0%
Travel $324,705 $324,705 $324,705 $0 0.0%
Contractual Services $324,705 $324,705 $324,705 $0 0.0%
Equipment $360,426 $360,426 $360,426 $0 0.0%
Fringe benefits $1,194,476 $1,194,476 $1,194,476 $0 0.0%
Indirect costs $125,000 $125,000 $125,000 $0 0.0%
           
Center for Community Health Program $14,600,000 $14,000,000 $14,000,000 ($600,000) -4.1%
Personal Service $6,000,000 $6,000,000 $6,000,000 $0 0.0%
Regular $6,000,000 $6,000,000 $6,000,000 $0 0.0%
Nonpersonal Service $8,600,000 $8,000,000 $8,000,000 ($600,000) -7.0%
Supplies and materials $1,250,000 $1,250,000 $1,250,000 $0 0.0%
Travel $1,500,000 $1,500,000 $1,500,000 $0 0.0%
Contractual Services $1,500,000 $900,000 $900,000 ($600,000) -40.0%
Equipment $1,386,000 $1,386,000 $1,386,000 $0 0.0%
Fringe benefits $2,733,000 $2,733,000 $2,733,000 $0 0.0%
Indirect costs $231,000 $231,000 $231,000 $0 0.0%
           
Investigating Broker/Insurer Practices in Insurance Industry $1,789,451 $1,789,451 $1,789,451 $0 0.0%
Personal Service $585,938 $585,938 $585,938 $0 0.0%
Regular $585,938 $585,938 $585,938 $0 0.0%
Nonpersonal Service $1,203,513 $1,203,513 $1,203,513 $0 0.0%
Supplies and materials $178,419 $178,419 $178,419 $0 0.0%
Travel $327,102 $327,102 $327,102 $0 0.0%
Contractual Services $178,419 $178,419 $178,419 $0 0.0%
Equipment $211,131 $211,131 $211,131 $0 0.0%
Fringe benefits $269,442 $269,442 $269,442 $0 0.0%
Indirect costs $39,000 $39,000 $39,000 $0 0.0%
           
TraCS Project $2,000,000 $1,950,000 $1,950,000 ($50,000) -2.5%
Nonpersonal Service $2,000,000 $1,950,000 $1,950,000 ($50,000) -2.5%
Supplies and materials $100,000 $100,000 $100,000 $0 0.0%
Travel $100,000 $100,000 $100,000 $0 0.0%
Contractual Services $100,000 $100,000 $100,000 $0 0.0%
Equipment $1,700,000 $1,650,000 $1,650,000 ($50,000) -2.9%
           
Forge-Proof Pharmaceutical Prescription Program $16,400,000 $14,500,000 $14,500,000 ($1,900,000) -11.6%
Personal Service $2,288,372 $2,288,372 $2,288,372 $0 0.0%
Regular $2,288,372 $2,288,372 $2,288,372 $0 0.0%
Nonpersonal Service $14,111,628 $12,211,628 $12,211,628 ($1,900,000) -13.5%
Supplies and materials $375,293 $375,293 $375,293 $0 0.0%
Travel $209,767 $209,767 $209,767 $0 0.0%
Contractual Services $12,204,651 $10,304,651 $10,304,651 ($1,900,000) -15.6%
Equipment $190,698 $190,698 $190,698 $0 0.0%
Fringe benefits $1,042,735 $1,042,735 $1,042,735 $0 0.0%
Indirect costs $88,484 $88,484 $88,484 $0 0.0%
           
Enhanced Newborn Screening Program $11,900,000 $11,900,000 $11,900,000 $0 0.0%
Personal Service $4,341,000 $4,341,000 $4,341,000 $0 0.0%
Regular $4,326,000 $4,326,000 $4,326,000 $0 0.0%
Holiday/overtime compensation $15,000 $15,000 $15,000 $0 0.0%
Nonpersonal Service $7,559,000 $7,559,000 $7,559,000 $0 0.0%
Supplies and materials $3,691,000 $3,691,000 $3,691,000 $0 0.0%
Travel $22,000 $22,000 $22,000 $0 0.0%
Contractual Services $899,000 $899,000 $899,000 $0 0.0%
Equipment $803,000 $803,000 $803,000 $0 0.0%
Fringe benefits $1,977,000 $1,977,000 $1,977,000 $0 0.0%
Indirect costs $167,000 $167,000 $167,000 $0 0.0%