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

SPONSOR Salazar

ORIGINAL DATE

LAST UPDATED

1-25-06

HB 129

SHORT TITLE Statewide Senior Citizen Program

SB

ANALYST Collard

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$10,010.5

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 251 and HB 490

SOURCES OF INFORMATION

LFC Files

Responses Received From

Aging and Long-Term Services Department (ALTSD)

SUMMARY

Synopsis of Bill

House Bill 129 appropriates $10 million from the general fund to ALTSD for the purpose of

funding the following projects: $8.4 million to six area agencies on aging for senior services,

including adults daycare, case management, congregate meals, home-delivered meals, in-home

services, transportation and senior center services; $631.5 thousand for volunteer services includ-

ing the Foster Grandparent (FGP), Senior Companion (SCP) and Retired and Senior Volunteer

(RSVP) Programs; $272 thousand for the senior employment program to create job opportunities

for senior citizens; $257.5 thousand for information and assistance, education and respite ser-

vices to individuals with Alzheimer’s disease or related disorders and their families or caregiv-

ers; $229.1 thousand for senior health promotion activities including senior Olympics; $110.9

thousand for statewide legal assistance for senior citizens; and $100 thousand for naturally oc-

curring retirement communities (NORC).

FISCAL IMPLICATIONS

The appropriation of $10,010,500 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to the gen-

eral fund.

House Bill 129 – Page

2

This funding is for direct services in local communities and will be distributed from ALTSD to

the local areas on aging to provide the services.

ALTSD notes the majority of the proposed appropriation ($5.6 million) is to maintain the current

level of services. The remaining $4.4 million is for expansion of services. The total request

went through a rigorous review process starting at the provider level submitted to and reviewed

by the Area Agency on Aging. These requests were forwarded to staff at the ALTSD for review

and were subsequently reviewed and approved by the Policy Advisory Committee. Services are

provided to maintain the highest quality of life for an older individual and allowing them the op-

portunity to remain independent and in their own homes.

SIGNIFICANT ISSUES

ALTSD indicates the “aging network” or the providers of these services have been facing an es-

calating demand for services by a rapidly increasing age 60 plus population. Increased opera-

tional costs have caused programs to direct all funding to maintain services due to costs associ-

ated with providing the same level of services has escalated over the past year. Services are

available primarily to older adults age 60 and over, with an emphasis on those who are unserved

or experiencing the greatest economic and social need, including low-income, minority, disabled

individuals and those residing in remote and rural areas of the state.

PERFORMANCE IMPLICATIONS

ALTSD notes the aging network is seeking funding to meet the growing demands of the current

older adult population. Critical services provided by this network prevent institutionalization

and provide a safety net to other state programs who serve the elderly and are undergoing regula-

tory changes in eligibility. In the coming years absent an increase in funding, the aging network

service providers will continue to develop waiting lists.

RELATIONSHIP

Senate Bill 251 and its duplicate, House Bill 490, propose an appropriation of $350 thousand for

NORC.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

ALTSD states the aging network providers will continue to be strained in their capacity to meet

an ever increasing demand for services. Increased demand will be placed upon family caregiv-

ers. Persons who might be able to remain in their homes and communities may be forced to en-

ter institutional care facilities for service.

KBC/nt