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F I S C A L I M P A C T R E P O R T

SPONSOR Garcia

DATE TYPED 01/24/05 HB 72

SHORT TITLE South Valley Multipurpose Family Services Center SB

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

$60.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Aging and Long-Term Services Department (ALTSD)

SUMMARY

Synopsis of Bill

House Bill 72 appropriates sixty thousand dollars ($60,000) from the general fund to the Aging

and Long Term Services Department (ALTSD) to fund a site manager and operating costs to

prepare the South Valley Multipurpose Family Services Center site in Bernalillo County for

daily senior activities, once operational.

Significant Issues

The South Valley Multipurpose Family Services Center would include space for adult daycare, a

senior meal site, childcare/Headstart and for educational programs such as adult education, a stu-

dio workshop, charter school and traditional Hispano cultural programs along with recreational

programs such as a mini-gymnasium, therapeutic pool and outdoor recreation space.

PERFORMANCE IMPLICATIONS

The South Valley Multipurpose Family Services Center plans to consolidate senior meal sites

from various smaller centers located within a 5 mile radius of the proposed facility. The Center

is currently in the process of being renovated and the consolidation and related services could not

begin until completed.

House Bill 72 -- Page 2

FISCAL IMPLICATIONS

Capital Projects are currently being used to renovate the multipurpose center to serve as an adult

daycare and senior meal site. The appropriation of $60,000 contained in this bill was not con-

tained in the proposed Aging Network Package under House Bill 167 and is a recurring expense

to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal

year 2006 shall revert to the general fund.

The proposed Aging Network Package under House Bill 167 requests an appropriation of

$7,824,797 from the general fund to the ALTSD’s six area agencies for senior services, includ-

ing adult daycare, case management, congregate meals, home delivered meals, in-home services,

transportation and senior center services for fiscal year 2006. The appropriation requested in

House Bill 72 will be used for start up operating costs for the daily senior activities portion once

site is operational.

Continuing Appropriations

If enacted, House Bill 72 funds the fiscal year 2006 operation of the Bernalillo County South

Valley Multipurpose Family Services Center’s daily senior activities. Though not directly stated,

it seems likely additional appropriations to the General Fund would occur due to the recurring

administrative, maintenance, and operating costs associated with the senior activities at the cen-

ter.

ADMINISTRATIVE IMPLICATIONS

The 2004 New Mexico legislative session elevated the Aging and Long Term Services Depart-

ment (ALTSD) to a cabinet level department. This legislation expanded the department substan-

tially by moving long term care and other related services from the Department of Health and

Human Services Departments. According to the Legislative Finance Committee (LFC), ALTSD

recent budget request was an increase of 45% due to the statutory expansion. Without the expan-

sion, the department requested less than a one percent increase.

OTHER SUBSTANTIVE ISSUES

The Aging and Long Term Services department is conducting financial and quality care audits

on all 81 nursing homes over the next 2 years because of quality of care concerns expressed on

behalf of the elderly and other dependent adults voiced during the 2004 legislative session. Ac-

tivity centers serving seniors living independently may help to address the isolation and loneli-

ness often associated with aging. These centers typically focus on wellness and successful aging

by enhancing the independence, talents and interests of its population and may prolong entry into

long term care facilities.

ALTERNATIVES

According to ALTSD, the program would have to seek local resources.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

According to ALTSD, there may not be sufficient funds to prepare the daily senior activity site

House Bill 72 -- Page 3

for operation.

POSSIBLE QUESTIONS

How will the smaller sites be affected once the consolidation of the senior meal program occurs

at the South Valley Multipurpose Center.

How many seniors will be served by this new facility. Will transportation to facility be pro-

vided.

What is the expected date facility will be operational.

AH/lg