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

SPONSOR Trujillo

ORIGINAL DATE

LAST UPDATED

2/4/08

HB 587

SHORT TITLE Mentally Retarded Care Facility Operations

SB

ANALYST Haug

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$217.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

$530.0

$530.0 Recurring

Federal

Medicaid Match

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates HB 341

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

Department of Health (DOH)

SUMMARY

Synopsis of Bill

House Bill 587 appropriates $217.0 from the general fund to the Human Services Department for

operational expenses and to improve staff recruitment and retention at intermediate-care facilities

for the mentally retarded (ICF-MR).

House Bill 587 – Page

2

FISCAL IMPLICATIONS

The appropriation of $217.0 contained in this bill is a recurring expense to the general fund. Any

unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the

general fund.

This appropriation request is not in the Executives Budget request. An appropriation of $217,000

in State dollars would be matched with approximately $530,000 in Federal Medicaid funds. This

would enable the Department to increase ICF-MR rates by approximately three percent for one

year.

SIGNIFICANT ISSUES

The HSD states that fiscal year 2009 is a “rebasing year" for ICFs-MR, which means that their

rates will be adjusted according to their costs and other factors. These rates will be effective

September 1, 2008. The estimated increase for the rebasing is an average of approximately 12 -

13%. In addition, Medicaid providers received rate increases for fiscal years 2007 and 2008.

ICF-MR providers received increases in both of those years, although less than the three percent

proposed in HB587. Given budget exigencies for FY09, it is unlikely that the Department will

be able to increase rates for most providers.

DOH adds that the agency’s Los Lunas Community Programs operates a four bed ICF-MR at

full capacity. ICFs-MR serve individuals with mental retardation and other related conditions.

Most have other disabilities as well. Many of the individuals are non-ambulatory, have seizure

disorders, behavior problems, mental illness, visual or hearing impairments, or a combination of

the above. Costs are high due to the multiple complexities of staffing, medical, clinical,

transportation, residential and service coordination issues.

Additional funds would improve staff recruitment and staff retention, resulting in a more

qualified, stable workforce. For the well being of the individuals served, it is imperative that a

qualified, stable and consistent workforce be maintained. Quality, consistent staffing deescalates

and reduces behavioral, clinical psychological and medical issues with individuals. This provides

a better quality of life and transition to the community via employment and self worth. This

stability in the provision of care and services is critical to an individual’s ability to become as

independent as possible and live the highest quality of life attainable.

DUPLICATION

House Bill 587 duplicates House Bill 431.

GH/mt