Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Madalena
DATE TYPED 1/26/05
HB 171
SHORT TITLE Medicaid Program Funding
SB
ANALYST Weber
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$92,000
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates SB 21
Duplicates Appropriation in the General Appropriation Act
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
$237,631
Recurring
Federal Funds
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Human Services Department
SUMMARY
Synopsis of Bill
House Bill 171 appropriates $92 million from the GENERAL FUND to The Human Services
pg_0002
House Bill 171 -- Page 2
Department for the purpose continuing the current level of benefits and eligibility in the Medi-
caid program and to allow for growth in the projected number of recipients and the rising costs
of providing services to beneficiaries.
Significant Issues
A significant increase is included in the LFC and DFA recommendation making the requirement
for Medicaid funding considerable less than the $92 million included in HB 171.
FISCAL IMPLICATIONS
The appropriation of $92 million contained in this bill 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.
OTHER SUBSTANTIVE ISSUES
It is uncertain what is meant by the rising costs of services. If this refers to inflation factors re-
lated to the program it may be valuable to define which will be used to adjust the reimburse-
ments and subsequently the appropriation requirement.
MW/lg