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

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