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 Feldman

DATE TYPED 1/27/05

HB

SHORT TITLE Medicaid Program Funding

SB 21

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 HB 171

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

Senate Bill 21 -- Page 2

SUMMARY

Synopsis of Bill

Senate Bill 21 appropriates $92 million from the GENERAL FUND to The Human Services

Department for the purpose continuing the current level of benefits and eligibility in the

Medicaid 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 SB 21.

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

related to the program it may be valuable to define which will be used to adjust the

reimbursements and subsequently the appropriation requirement.

MW/lg:sb