NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in The General Appropriation Act of $4,834.8

Relates to SB20, SB254, SB163, HB353 and HB2

SOURCES OF INFORMATION

Department of Health (DOH)

SUMMARY

Synopsis of Bill

Senate Bill 253 appropriates $25,000.0 from the general fund to the Department of Health to provide developmental disabilities services to individuals not being served due to lack of available appropriations. Included in this appropriation is $5 million for provider reimbursement rate increases.

Significant Issues

DOH indicates the appropriation contained in the bill could not be utilized within a one-year time period. Attempting to add 1250 individuals to the system, which is what the appropriation would support, would strain the Medicaid eligibility process, case management and provider system.

FISCAL IMPLICATIONS

The appropriation of $25 million contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.

House Bill 2 contains $1,092.9 in the base to increase DD provider rates, and $3,741.9 in base expansion to address the DD waiting list. HB2 also contains language stipulating:

Unexpended or unencumbered balances remaining at the end of fiscal year 2002 in the medicaid waivers activity of the long-term care program of the department of health shall be expended to increase provider rates in the developmental disabilities Medicaid waiver program and developmental disabilities general fund program as allowed by the federal Health Care Financing Administration.

DOH indicates the $25 million appropriation for DD services contained in the bill, if leveraged with federal Medicaid funds, would provide an additional $68.7 million. This represents a 71% increase in total funding for developmental disabilities services in one year.

ADMINISTRATIVE IMPLICATIONS

DOH indicates it, and the Human Services Department, would require additional staff to implement the provisions of the bill.

TECHNICAL ISSUES

DOH indicates the bill's wording is not clear regarding if funding is only intended for individuals on the central registry who have no other services, or if it is for anyone on the central registry.

RAE/ar