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

SPONSOR Trujillo

ORIGINAL DATE

LAST UPDATED

2/6/06

HB 434/aHCPAC

SHORT TITLE

ELDERLY, DISABLED & LOW-INCOME

SERVICES

SB

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$100.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

Aging and Long Term Services Department (ALTSD)

SUMMARY

Synopsis of HCPAC amendment

The House Consumer and Public Affairs Committee amendment changes the appropriation from

the Human Services Department to the Aging and Long Term Services Department.

Synopsis of Original Bill

House Bill 434 appropriates $100 thousand from the general fund to the Human Services

Department for the purpose of contracting with a nonprofit organization that provides adult

daycare services and community outreach services for elderly, disabled and low-income

individuals in Santa Fe, Taos and Torrance counties. The funds are designated for program

management and operational support for financial education and case management services,

adult daycare services, home visiting services, health care education and advocacy programs and

home safety assessments and installations.

FISCAL IMPLICATIONS

The appropriation of $100 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to

the general.

House Bill 434/aHCPAC – Page 2

SIGNIFICANT ISSUES

HSD notes that the bill does not specify any relationship of the contracted services to Medicaid

eligibility. There would be no revenue for the Medicaid federal match for these services.

The language of the HB 434 specifies the target clientele as, “elderly, disabled and low-income

individuals.” Therefore, low-income individuals that are neither elderly nor disabled may also

receive these services.

Some of the services mentioned are available through Medicaid for eligible individuals enrolled

in the Disabled and Elderly waiver. Those services include case management, adult day care and

environmental modification, the latter of which includes home safety assessments and home

modifications. During FY05 there was approximately 245 individuals served in the Medicaid

Disabled and Elderly waiver for the combined counties of Santa Fe, Taos and Torrance.

The contract and services contemplated by this legislation are currently provided by programs

funded by the Aging and Long Term Services Department. ALTSD, through an exhaustive

process with full participation by advocates, providers and the Area Agency on Aging with

responsibility for the enumerated counties, develops a budget recommendation that is designed

to fund the services and programs identified in this legislation. Funding the program at HSD is

likely to result in a duplication of effort and programming instead of providing additional

programs and services. The types of services contemplated are unlikely to be eligible for federal

Medicaid match.

TECHNICAL ISSUES

Since Aging and Long Term Services currently provides services of this nature not matched with

federal Medicaid funds, consideration should be given to appropriating the funds to ALTSD to

achieve efficiency.

MW/yr