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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

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

SPONSOR Feldman

ORIGINAL DATE

LAST UPDATED

1/23/06

HB

SHORT TITLE

FULLY FUND MEDICAID PROGRAM

SB 74

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$50,000.0

Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates Appropriation in the General Appropriation Act

Relates to Appropriation in the General Appropriation Act

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

$130,000.0

Recurring Federal Funds

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Senate Bill 74 appropriates $50 million from the general fund to the Human Services Department

for the purpose of funding the Medicaid program at the current level of benefits and eligibility

and to allow for growth in the projected number of recipients and the rising costs of providing

services to beneficiaries.

FISCAL IMPLICATIONS

The appropriation of $50 million 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

Senate Bill 74 – Page 2

general fund. The state appropriation would generate an estimated $130 million in federal

matching funds.

SIGNIFICANT ISSUES

The current version of the General Appropriations Act includes over $600 million from the

general fund for the Medicaid program. This level of appropriation is anticipated to fund the

current level of benefits and does not change eligibility. There are many variables in a program

of this size, approaching $3 billion in total expenditures, and it is difficult to project with

precision the cost of this program in FY07, over a year away. However, $50 million in addition

to the over $600 million from the general fund would seem excessive without benefit and

eligibility changes. The bill needs to clarify if this appropriation is in addition to the General

Appropriations Act funding or in place of. Also, the bill should include details of specific areas

in the Medicaid program the $50 million would supplement.

MW/nt