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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.
pg_0002
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