COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1111-01

Bill No.: SB 510

Subject: Federal - State Relations; Health Care; health, Public; Hospitals; Medicaid; Social Services Department

Type: Original

Date: March 17, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Federal Reimbursement Allowance* $0 $0 $0
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0

*Revenues and expenditures of approximately $545 million annually would net to $0.

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Federal*
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0

*Revenues and expenditures of approximately $870 million would net to $0.

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Mental Health assume this proposal would not fiscally impact their agency.



Officials from the Department of Social Services - Division of Medical Services (DMS) assume this proposal would not fiscally impact the DMS. The DMS states if the federal reimbursement allowance (FRA) program is not extended, additional funding would be needed to maintain the current level of services.



















FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
FEDERAL REIMBURSEMENT ALLOWANCE FUND
Income - Department of Social Services
Assessment of hospitals $0 $409,332,650 $545,776,867
Costs - Department of Social Services
Program specific expenditures $0 ($409,332,650) ($545,776,867)
ESTIMATED NET EFFECT ON FEDERAL REIMBURSEMENT ALLOWANCE FUND





$0




$0




$0
FEDERAL FUNDS
Income - Department of Social Services
Medicaid match $0 $653,041,215 $870,721,620
Costs - Department of Social Services
Program specific expenditures $0 ($653,041,215) ($870,721,620)
ESTIMATED NET EFFECT ON FEDERAL FUNDS

$0


$0


$0


FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.











DESCRIPTION



This proposal extends the sunset date for the federal reimbursement allowance for hospitals from September 30, 2004, to September 30, 2006.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.



SOURCES OF INFORMATION



Department of Social Services

Department of Health and Senior Services

Department of Mental Health









Mickey Wilson, CPA

Director

March 17, 2003