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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

1/25/06

HB 142

SHORT TITLE

FULLY FUND MEDICAID PROGRAM

SB

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$50,000.0

Recurring

Federal Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 74

Duplicates Appropriation in the General Appropriation Act

Relates to Appropriation in the General Appropriation Act

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

$130,000.0

$125,000.0 Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

SUMMARY

Synopsis of Bill

House Bill 142 appropriates $50 million from the general fund to the Human Services

Department for the purpose of funding the Medicaid program at the current level of benefits and

eligibility and to allow for growth in the projected number of recipients and the rising costs of

providing services to beneficiaries.

House Bill 142 – Page 2

FISCAL IMPLICATIONS

The appropriation of $50 million 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

general fund.

SIGNIFICANT ISSUES

The current version of the General Appropriations Act includes over $600 million from the

general fund for the Medicaid program. This level of appropriation is anticipated to fund the

current level of benefits and does not change eligibility. There are many variables in a program

of this size, approaching $3 billion in total expenditures, and it is difficult to project with

precision the cost of this program in FY07, over a year away. However, $50 million in addition

to the over $600 million from the general fund would seem excessive without benefit and

eligibility changes. The bill needs to clarify if this appropriation is in addition to the General

Appropriations Act funding or in place of. Also, the bill should include details of specific areas

in the Medicaid program the $50 million would supplement.

MW/nt