SB 0555 - Fiscal Note

Fiscal Note - SB 0555 - Division of Aging to Begin Pilot Projects to Aid Elderly

L.R. NO.  2320-01
BILL NO.  SB 555
SUBJECT:  Pilot Projects for Elderly
TYPE:     Original
DATE:     January 12, 1996



                              FISCAL SUMMARY


                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

General Revenue*            ($17,686)       ($42,676)      ($43,856)


Partial Estimated
Net Effect on All
State Funds                 ($17,686)       ($42,676)      ($43,856)

            *Unknown pilot project costs not included.

                  ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999


Total Estimated
Net Effect on All
Federal Funds                      $0              $0             $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

Local Government                   $0              $0             $0



                              FISCAL ANALYSIS

ASSUMPTION

The Department of Social Services (DOS), Division of Medical Services (DMS)
assumes an unknown savings.  One purpose of the proposal is to reduce
Medicaid spending to below two-thirds the current spending level for the
elderly.  The savings associated with this reduction cannot be calculated
since the number of Medicaid recipients who would participate and the amount
of savings per recipient cannot be ascertained.

The Division of Aging (DA) estimated costs for two pilot projects and
additional staff for the division.  DA assumes that each project site would
need an executive director, a volunteer recruitment specialist, a training
specialist and a project support person.  In addition to these staffing
requirements, DA estimated expense and equipment (i.e., rent, automation
equipment, travel, recruitment and training, liability insurance, court
filing fees, legal representation, and recipient goods/services) costs.
Total estimated annual cost per project would be $189,074, with a 3%
inflationary factor included for FY99.  It was assumed that the projects
would not become operational until FY98.  DA also indicated costs for an
Aging Program Specialist II and a Clerk Typist II.  The program specialist
would be responsible for initiating the projects; providing technical support
to the sites; conducting required research; seeking grant opportunities; and
promulgating rules and regulations.  Total costs (i.e., for the projects and
staff) would be $30,111 in FY97; $439,429 in FY98; and $452,365 in FY99.
FY97 costs would be for three months of DA staffing costs.  All costs were
shown as 100% General Revenue (GR).

Oversight assumes that since the allocation of funds for the projects is
subject to appropriations that the amount would be unknown.  Furthermore, it
was assumed that staffing for the projects would not need to be as extensive
if existing organizations with similar objectives, such as Area Agencies on
Aging, were utilized to accomplish the goals of this proposal.  Oversight
concurs that DA would need a program specialist to coordinate the activities
of the projects from a central location, but that clerical support could be
absorbed with existing resources.  Adjusted staffing costs would be $17,686
in FY97; $42,767 in FY98; and $43,856 in FY99.  Expense and equipment costs
were adjusted to reflect the Office of Administration (OA) guidelines and
rent costs were eliminated since it was assumed that additional space would
not be acquired.


FISCAL IMPACT  - Local Government    FY 1997     FY 1998     FY 1999
                                    (10 Mo.)
GENERAL REVENUE

Savings-Department of Social Services
Division of Medical Services (DMS)
Reduction in Medicaid Spending
for Elderly                          Unknown     Unknown     Unknown

Costs-Division of Aging (DA)
  Personal Service (1 FTE)          ($7,226)   ($29,628)   ($30,368)
  Fringe Benefits                   ($2,221)    ($9,108)    ($9,335)
  Expense and Equipment             ($8,239)    ($4,031)    ($4,152)
Total Costs-DA                     ($17,686)   ($42,767)   ($43,856)

Costs-Division of Aging (DA)
Pilot Projects for Elderly         (Unknown)   (Unknown)   (Unknown)
                                     - SUBJECT TO APPROPRIATIONS -

PARTIAL ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND               ($17,686)   ($42,767)   ($43,856)

FISCAL IMPACT  - Local Government    FY 1997     FY 1998     FY 1999
                                    (10 Mo.)

                                          $0          $0          $0

DESCRIPTION

The proposal known as the "Elders Volunteer for Elders Project (EVE) Act",
would allow the Department of Social Services (DOS), Division of Aging (DA)
to establish a three year pilot project in St. Louis City and Kansas City for
the purpose of preventing the premature or unnecessary institutionalization
of Missouri's elderly citizens.  DA would be required to conduct research to
determine the relationship between volunteer programs and the amount of
voluntary institutionalization; make recommendations to the General Assembly
concerning the continuation or modification of the projects; make application
for federal grants; and promulgate rules and regulations necessary for
implementation.



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