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

SPONSOR SPAC

ORIGINAL DATE

LAST UPDATED

02/2/07

HB

SHORT TITLE Family, Infant & Toddler Programs

SB 92/SPACS

ANALYST Geisler

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$1,800.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

$2,777.1

$2,777.1 Recurring Federal Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

SUMMARY

Synopsis of Bill

The Senate Public Affairs Committee substitute for Senate Bill 92 would appropriate $1.8

million to the Family Infant Toddler (FIT) Program for Fiscal Year 2007 and subsequent fiscal

years. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not

revert to the general fund.

Senate Bill 92/SPACS – Page

2

FISCAL IMPLICATIONS

The $1.8 million proposed in this bill would be in addition to current base funding of

approximately $15.1 million in FY08. The executive budget recommendation for DOH proposes

a $1.25 million increase for the FIT program in FY08; the Legislative Finance Committee budget

recommendation proposes an increase of $1 million for FY08. DOH has been working on

Increasing FIT program revenue by increasing third-party billing for services. However, the

department is concerned that they may end up short in collecting $1.2 million in other revenues.

It is possible that the funding in this bill could cover an FY07 shortfall, or the department may

request budget adjustment request authority to transfer funds internally.

DOH notes that approximately 60% of children eligible for the FIT Program are Medicaid

eligible. The federal match for services provided under Medicaid is approximately 72%.

Therefore if $1,080,000 (i.e., 60% of $1.8 million) is matched with Medicaid, this would

generate an additional $2,777,142. The total amount would fund approximately 1,557 children at

the current cost per child.

SIGNIFICANT ISSUES

The FIT Program is the lead agency under the Individuals with Disabilities Education Act

(IDEA) Part C for the administration of a statewide system of early intervention services for

infants and toddlers (birth to age 3), who have or are at risk for developmental delays or

disabilities. The FIT Program is an entitlement program for children and families who are

eligible in accordance with the Education of the Handicapped Act (28-18 NMSA 1978) and the

Requirements for Family Infant Toddler Early Intervention Services Act (7.30.8 NMAC).

The FIT Program utilizes State General Funds to fund early intervention services on a fee-for-

service basis through a statewide network of private and public provider agencies. The FIT

Program also pays the state match for early intervention services provided to children who are

Medicaid eligible. Additionally, the FIT Program utilizes the annual Federal IDEA Part C grant

and payments made through private insurance under the Senate Bill 589 passed in the 2005

Legislative session.

The FIT Program served 9,602 total infants and toddlers (birth to 3) and their families in Fiscal

Year 2006 and has experienced a growth of 9% in the children served through an Individualized

Family Service Plan (IFSP) compared to the previous year. This growth is a result of ongoing

child find and public awareness efforts made to medical, childcare, home-visiting and social

service providers. Additionally, the FIT Program continues to experience significant growth in

referrals as a result of changes in the Child Abuse Protection and Treatment Act (CAPTA) that

now mandates the referral of children under age 3 from CYFD when abuse or neglect are

substantiated.

It is estimated that an additional 1,557 children could be funded through this appropriation with

the use of Medicaid Match. The average annual cost per child in the FIT Program is

approximately $2,938.

GG/mt:nt