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

SPONSOR Picraux

DATE TYPED 2/28/05

HB 365

SHORT TITLE Services For Certain Elderly People

SB

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$167.0

Recurring General Fund

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$489.552 Federal DHHS

Demonstration Project

Recurring

General Fund

SOURCES OF INFORMATION

LFC Files

Responses Received From

Aging and Long-Term Services (ALTSD)

NM Mortgage Finance Authority (MFA)

SUMMARY

Synopsis of Bill

House Bill 365 appropriates $167 thousand from the general fund to ALTSD in FY06 for a fed-

eral demonstration project known as Naturally Occurring Retirement Communities (NORC), and

to contract with community providers to provide supportive services that help keep elderly indi-

viduals in their homes.

House Bill 365 -- Page 2

Significant Issues

The DOH reports:

The purpose of the grant is to develop and assess an innovative service delivery model to enable

senior citizens to avoid premature institutionalization through supportive in-home services.

NORD attempts to address the aging in place phenomenon in a community of single-family

homes. Services will be provided such as chore service, informational and referral assistance,

case management, public health nursing and chronic care management, health screenings and

health education, social and recreational activities, and adult day programs targeted to popula-

tions living in naturally occurring retirement communities.

Services are currently provided by the Jewish Family Service of New Mexico (JFS) in Albu-

querque. The model is a “grassroots” work with local strategic community partners involved to

develop services and supports tailored to each community’s needs. In Dec 2004 JFS received

$500 thousand federal funds contained in the FY05 Omnibus Spending Bill, and in FY04 $300

thousand federal funds from the Consolidated Appropriations Bill for NORC projects. Even

though JFS is a faith-based organization, they claim to provide services regardless of religious

affiliation.

The target communities represented are HUD-funded senior housing complexes and suburban

neighborhoods of single-family homes. Strategic community partners in the project include the

City of Albuquerque Department of Senior Affairs, the UNM School of Nursing, Catholic Chari-

ties and Health South Rehabilitation Hospital.

The model was initiated in an urban setting (Albuquerque, Bernalillo County), expanded to a

suburban area (Rio Rancho, Sandoval County), and in the SFY 06 proposes to expand to Ft.

Sumner, De Baca County.

PERFORMANCE IMPLICATIONS

HB 365 is aligned with ALTSD’s desire to administer programs that allow older individuals to

remain independent and involved in their communities.

FISCAL IMPLICATIONS

The appropriation of $167,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

The ALTSD reports the funding request will increase the recurring budget of the ALTSD by

$167,000. The $167,000 appropriation will be used as match for a federal award of $489,552 for

FY06.

ADMINISTRATIVE IMPLICATIONS

ALTSD will implement the program with existing staff and resources.

House Bill 365 -- Page 3

TECHNICAL ISSUES

Faith-based non-profit agencies receiving state appropriations should advertise that services pro-

vided are for all persons regardless of religious affiliations or lack thereof.

OTHER SUBSTANTIVE ISSUES

ALTSD believes it is important to look at options to providing supportive services for older

adults, especially in rural areas where services and living options are limited.

MFA is cognizant of the need for supportive services by elderly persons who are either forced or

choose to live independently. Supportive services, they believe, are the “safety net” for elderly

persons living alone.

Communities are faced with increasingly difficult decisions about how to plan for change, and

increase and improve the quality of life for adults with disabilities as well as elders who may de-

velop disabilities as they grow older. People are living longer lives today than ever before and

the population of people aged 65 and older is growing rapidly. By 2030, one in five people in the

United States will be over the age of 65. Currently, more than 4.7 million Americans aged 65

years or older have a sensory disability involving sight or hearing, and more than 6.7 million

have difficulty going outside the home. As the population of elders grows, it is likely that the

number of people aged 65 and older with disabilities also will grow, particularly among those 75

years of age and older.

ALTERNATIVES

None indicated.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

There may be limited options available to New Mexicans as they age.

AHO/njw:yr