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F I S C A L I M P A C T R E P O R T
SPONSOR Barela
ORIGINAL DATE
LAST UPDATED
1/30/07
HB 514
SHORT TITLE
Los Lunas Substance Abuse Facility
SB
ANALYST Weber
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$2,000.0
Recurring
General Fudn
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Human Services Department (HSD)
Department of Corrections (CD)
SUMMARY
Synopsis of Bill
House Bill 514 appropriates $2 million from the general fund to the Human Services Department
for the purpose of operating a state-of-the-art substance abuse treatment and training facility in
Los Lunas in Valencia county.
FISCAL IMPLICATIONS
The appropriation of $2 million contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of Fiscal Year 2008 shall revert
to the general fund.
HSD indicates it is not likely that these operational and training costs could be matched with fed-
eral Medicaid dollars. A cost allocation plan would have to be incorporated and approved by the
various federal agencies that may contribute federal financial participation.
pg_0002
House Bill 514 – Page
2
SIGNIFICANT ISSUES
HSD continues that the facility will provide a community-based, outpatient component focused
on methamphetamine, heroin and other substance abuse issues in New Mexico. The facility will
also provide significant telehealth capacity to support communities throughout the state and will
use evidence-based practices to train employees and community providers.
The Medical Assistance Division (MAD) of HSD will not be directly affected by this appropria-
tion. However, as a member of the Interagency Behavioral Health Purchasing Collaborative,
MAD supports this bill.
MW/sb