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





SPONSOR: McSorley DATE TYPED: 02/15/99 HB
SHORT TITLE: DD Service Providers Cost-Of-_Living Increase SB 436
ANALYST: Burkhart


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 0.0



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



Department of Health



SUMMARY



Synopsis of Bill



Senate Bill 436 requires the Department of Health to include in it's annual budget request an increase in the cost-of-living portion of the rate it pays for physical therapists who work with the developmentally disabled population and who are under contract to the department. If monies are not appropriated to the department, they must implement a reduction in service plan.



Significant Issues



The passage of this legislation would serve to guarantee a cost-of-living increase for physical therapist service providers. Other service providers would not benefit from this legislation and would be placed at a disadvantage with regard to salary increases.





FISCAL IMPLICATIONS



Placing a requirement to implement a salary increase for physical therapists working with the developmentally disabled population would limit the discretion the department has to manage it's budget.



ADMINISTRATIVE IMPLICATIONS



Administration of the monies contemplated by this legislation is within the budgeted capacity of this department.



OTHER SUBSTANTIVE ISSUES



Physical therapists are presently among the highest paid health care providers under contract to the Department of Health.



POSSIBLE QUESTIONS



1. Why was this category of health care provider selected to receive a cost-of-living increase?



2. Has there been an estimate made of the cost of implementing such an increase for these health providers?



MB/njw