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

SPONSOR Salazar

ORIGINAL DATE

LAST UPDATED

01/23/07

HB 131

SHORT TITLE Senior Citizens Programs

SB

ANALYST Geisler

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$6,880.9

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Aging and Long-Term Services Department (ALTSD)

SUMMARY

Synopsis of Bill

House Bill 131 appropriates $6,880,926 from the general fund to ALTSD to maintain and/or

enhance services to senior citizens statewide for the following purposes:

1)

$5,318,651 to four area agencies on aging for senior services, including adult day care, case

management, congregate meals, home delivered meals, in-home services, transportation and

senior center services;

2)

$296,826 for volunteer programs including foster grandparents, senior companions and

retired senior volunteers;

3)

$286,036 for the senior employment program to create job opportunities for seniors;

4)

$513,200 for information, assistance, education and respite services for persons with

Alzheimer's Disease, other chronic illnesses and/or functional impairments and their

caregivers;

5)

$174,310 for senior health promotion activities, including senior Olympics;

House Bill 131 - Page

2

6)

$126,833 for statewide legal assistance for seniors; and,

7)

$165,070 for naturally occurring retirement communities.

FISCAL IMPLICATIONS

The $6.8 million appropriation contained in this bill would be in addition to $32.9 million in base

FY08 funding for aging network programs. In addition, both the executive and legislative

finance committee (LFC) are recommending expansion requests for aging network programs,

with the executive recommending $2.57 million and the LFC recommending $1.8 million.

AGLSTD notes that aging network providers, area agency's on aging and ALTSD went through

an extensive process of review and refining the request. Of the $6.8 million in the legislation,

$3.5 million is for maintenance of effort and the $3.3 million balance is for enhanced new

services.

SIGNIFICANT ISSUES

ALTSD notes that statewide, providers of aging network services have been facing an increased

demand for services brought about by a rapidly growing aging population, fueled by the aging of

New Mexico's population, as well as an influx of retirees to our state. As these seniors "age in

place", many develop chronic health conditions and functional limitations that further increase

their need for supportive services.

Aging network services are primarily targeted to persons age 60 and older, with an emphasis on

those with the greatest economic and social needs. Many programs are located in rural areas and

on tribal lands, where the aging network provider is the only service provider available to the

community's seniors. These programs have been impacted by the increased cost of gasoline, as

many of the services- transportation, home-delivered meals and in-home services, require the

extensive use of vehicles, particularly vans. The appropriation will be used to support increased

demands for services and increased operating costs for providing these services which enable

seniors to remain in their own homes and communities, statewide.

PERFORMANCE IMPLICATIONS

Aging Network providers include senior centers, congregate meal sites, adult day care programs,

volunteer programs, employment program host agencies, Senior Olympics, the NM Alzheimer’s

Association and others. Aging Network contract providers help families remain together, at

home, in their own communities and create a safety net for the vast majority of New Mexico’s

elders, those who don't qualify for Medicaid but whose resources are limited, those whose

families are stretched to capacity caring for loved ones at home. Employment and volunteer

opportunities enable older adults to re-main active, vital members of their communities.

Financial subsidies offered by the employment programs and by some of the volunteer programs

help seniors maintain their economic independence. The Aging Network is the only resource for

many New Mexicans. Without additional funding, these providers will be forced to develop

waiting lists, as they will be unable to meet the increasing demand for services.

GG/nt