NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Saavedra

 

DATE TYPED:

02/25/03

 

HB

390/aHLC

 

SHORT TITLE:

Benefits for Senior Citizen Program Providers

 

SB

 

 

 

ANALYST:

Hayes

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$1,053.3

 

 

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

State Agency on Aging

 

SUMMARY

 

     Synopsis of HLC Amendments

 

The two House Labor and Human Resources Committee amendments clarify that the funding being requested in this bill is for salaries, along with basic employee health and retirement benefits for employees of senior citizen programs, not for service providers statewide throughout the six area agencies on aging.

 

     Synopsis of Original Bill

 

House Bill 390 appropriates $1,053.0 from the general fund to the State Agency on Aging for the purpose of funding basic employee health and retirement benefits for employees of senior citizen programs and service providers throughout the six area agencies on aging in New Mexico.

 

     Significant Issues

 

  1. This bill will provide employee benefits, health coverage and retirement benefits to individuals who are not state employees.  It is unclear whether the bill is suggesting these employees will be provided coverage and retirement benefits through the State’s programs or through private entities.

 

  1. For clarification, “employees of senior citizen programs and service providers” are the contractors, sub-contractors, non-profit organizations, villages and municipalities engaged by the Agency on Aging to provide a wide-range of services to seniors.

 

  1. Many contractors of area agencies on aging have employees who are in minimum wage positions and whose employers offer high cost, limited or no employee benefits.  The request of $1,053.0 would assist these providers to offer basic health and leave benefits to employees not currently covered.

 

  1. The Agency on Aging says that part of the $1,053.3 is also for a pay rate equalization/cost-of-living adjustment.  The exact portion meant for the rate equalization is not known.  HB 390 should clarify whether the bill includes a pay rate equalization and the amount being designated for the increases.  Also, when asking the Agency on Aging how many people would be affected by HB 390, the number was unknown.  However, the Agency on Aging provided the LFC with the following table which shows the cost per area: 

 

 

New Mexico State Agency on Aging:

 

 

 

 

Aging Network Benefits for HB 390

 

 

 

 

 

 

 

 

 

 

 AAA

 

Distribution

 

City of Albuquerque Development District

PSA 1

 

       $ 75,000

 

North Central NM Area Agency on Aging

PSA 2

 

      173,000

 

Eastern NM Area Agency on Aging, Inc.

PSA 3

 

      501,000

 

North Central NM Area Agency on Aging

PSA 4

 

       87,000

 

Navajo Nation Area Agency on Aging

PSA 5

 

       75,000

 

Indian Area Agency on Aging

PSA 6

 

              -  

 

Senior Volunteer Programs - FGP, SCP, RSVP

 

      142,000

 

 

 

 

   $1,053,000

 

 

 

 

 

 

 

FISCAL IMPLICATIONS

 

The appropriation of $1,053.0 contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund.

 

ADMINISTRATIVE ISSUES

 

According to the Agency on Aging, the availability of a lower benefits package would increase support staff retention, and costs associated with training and retention efforts would be minimized.

 

CMH/njw:yr