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

SPONSOR Beam

DATE TYPED 03/15/05 HB HM 51

SHORT TITLE Native American Counseling Programs

SB

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Human Services Department (HSD)

Aging and Long Term Care Department (ALTCD)

SUMMARY

Synopsis of HM 51

House Memorial 51 (HM 51) would require the Human Services Department; the Department of

Health, Long Term Services Division and the Aging and Long Term Services Department to do a

study on how the five year federal demonstration initiative entitled “Money Follows the Person –

Rebalancing Initiative” could impact the current services for individuals with disabilities in New

Mexico. The initiative would allow persons who are institutionalized in a nursing home or an

intermediate care facility for the mentally retarded to have a choice to live in the community and

have the money being expended on their institutional care follow them to provide for their com-

munity based care. Although no money is attached to HM 51, there is a potential to receive fed-

eral funding from the federal demonstration grant in future years if the findings indicate that our

long term care system could accommodate an initiative of this sort. The study findings would

need to be reported to the interim legislative health and human services committee no later than

November 1, 2005.

House Memorial 51 -- Page 2

Significant Issues

The Department of Health indicates the issues addressed by carrying out the study mandated in

this memorial are two-fold. The first issue is how does the state most appropriately provide ser-

vices and support for individuals with disabilities, as mandated by Olmstead v. Zimring, and how

does the state continue to be involved in best practices in working with individuals with disabili-

ties. The second issue is how does the state best attract and utilize federal funding such that New

Mexico is able to fund individuals to live in the community, assuming that is the individual’s

choice, rather than funding institutional care. The findings may affect the overall vision of how

to provide community based serivces and self-directed services in the future. As planning for

self-directed services is currently underway at the Department of Health, results from this study

will provide information to make important policy decisions.

DOH continues that they are working with both the Human Services Division and the Aging and

Long Term Services Department on drafting a concept paper to develop a plan to utilize a self-

directed waiver to provide care to individuals with disabilities. The “Money Follows the Person

Initiative” is philosophically related to the Self-Directed Service Model. Although the Aging

and Long-Term Services Department has received some funding from this grouping of federal

initiatives, House Memorial 51 would enable all three departments (Human Services, Depart-

ment of Health, Aging and Long-Term Services) to work together to identify a common lan-

guage and a common understanding of the money following the person

.

FISCAL IMPLICATIONS

HSD notes no additional funding would be required for one year since states can be fully reim-

bursed by the federal government for 1 year. However, the federal demonstration project is for

five years. It is not clear if 100% federal reimbursement is available for beyond the first year.

MW/yr