RD106 - Annual Report on Status of the Family Access to Medical Insurance Security (FAMIS) Plan Trust Fund


Executive Summary:
The Virginia Family Access to Medical Insurance Security (FAMIS) Plan Trust Fund was established in the state treasury as a special nonreverting fund in 1997 (though it was originally named the Virginia Children's Medical Security Insurance Plan Trust Fund). The State Corporation Commission annually calculates the tax revenue that is deposited into the trust fund. The Code of Virginia mandates that any moneys remaining in the Fund at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. From the beginning of the Fund until the middle of Fiscal Year 2002, the interest earned on the cash balances of the Fund was deposited into the Fund. However, language has been included in the Appropriation Act since 2003 that mandates that interest earned from the trust fund shall remain in the state General Fund.

Furthermore, in Chapter 951 of the 2005 Acts of the Assembly (§ 3-1.01 M.1 on Page 612 of Chapter 951) the language limits the deposits into the fund to $14,065,627 in each year of the biennium. If the amount to be deposited into the fund (based on the criteria set forth in the Code of Virginia) were to exceed the limit, the amount exceeding the limit is deposited in the General Fund.

The moneys in the Trust Fund are used, in lieu of state general funds, to drawdown federal funds to cover costs incurred in the Commonwealth's Title XXI program. Table I provides a history of deposits into and expenditures out of the Trust Fund for FY 1998 through FY 2006. Table 2 provides the appropriated amounts for the 2006-2008 biennium.