COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4398-01
Bill No.: SB 1111
Subject: Children and Minors: Department of Social Services
Type: #Corrected
Date: March 6, 2002
#Estimated Net Effect on State Funds
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | ($12,204,017) | ($12,753,198) | ($13,327,092) |
| Federal Reimbursement Allowance and Intergovernmental Transfers | ($8,673,500) | ($9,063,808) | ($9,471,679) |
| Health Initiatives | ($4,598,000) | ($4,804,910) | ($5,021,131) |
| Pharmacy Rebates | ($789,580) | ($825,111) | ($862,241) |
| Premium | ($1,045,000) | ($1,092,025) | ($1,141,166) |
| Intergovernmental Transfers | ($1,405,257) | ($1,468,494) | ($1,534,576) |
| #Total Estimated
Net Effect on All State Funds |
($28,715,354) | ($30,007,546) | ($31,357,885) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Federal | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
*Income and Costs of over $80,000,000 per year net to $0.
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials of the Department of Social Services - Division of Medical Services stated that the proposal would have no fiscal impact because it extends statutory authority for an existing program.
Officials of the Department of Health and Senior Services stated that the proposal would not affect their agency. They noted that if the proposal or a similar proposal is not enacted, the Department would incur costs of about $2,000,000 per year to cover children who would qualify for the Children with Special Health Care Needs Program if they were not already covered by the Children's Health Insurance Program (CHIP).
Oversight notes that the FY 2002 appropriation for the CHIP includes $13,678,485 from General Revenue, $76,227521 from Federal Funds, $8,300,000 from the Federal Reimbursement Allowance Fund and Intergovernmental Transfers, $4,400,000 from the Health Initiatives Fund, $755,579 from the Pharmacy Rebates Fund, $1,000,000 from the Premium Fund, and $1,344,744 from the Intergovernmental Transfer Fund. Oversight assumes costs would increase 4.5% per year.
| FISCAL IMPACT - State Government | FY 2003 | FY 2004 | FY 2005 |
| GENERAL REVENUE FUND | |||
| Cost Avoidance - Department of Health and Senior Services (DOH) | |||
| Children with Special Health Care Needs Program | $2,090,000 | $2,184,050 | $2,282,332 |
| Cost - Department of Social Services (DOS) | |||
| Children's Health Insurance Program (CHIP) | ($14,294,017) | ($14,937,248) | ($15,609,424) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND | ($12,204,017) | ($12,753,198) | ($13,327,092) |
| FEDERAL REIMBURSEMENT ALLOWANCE AND INTERGOVERNMENTAL TRANSFERS | |||
| Cost - Department of Social Services (DOS) | |||
| Children's Health Insurance Program (CHIP) | ($8,673,500) | ($9,063,808) | ($9,471,679) |
| ESTIMATED NET EFFECT ON FEDERAL REIMBURSEMENT ALLOWANCE AND INTERGOVERNMENTAL TRANSFERS | ($8,673,500) | ($9,063,808) | ($9,471,679) |
| HEALTH INITIATIVES FUND | |||
| Cost - Department of Social Services (DOS) | |||
| Children's Health Insurance Program (CHIP) | ($4,598,000) | ($4,804,910) | ($5,021,131) |
| ESTIMATED NET EFFECT ON HEALTH INITIATIVES FUND | ($4,598,000) | ($4,804,910) | ($5,021,131) |
| PHARMACY REBATES FUND | |||
| Cost - Department of Social Services (DOS) | |||
| Children's Health Insurance Program (CHIP) | ($789,580) | ($825,111) | ($862,241) |
| ESTIMATED NET EFFECT ON PHARMACY REBATES FUND | ($789,580) | ($825,111) | ($862,241) |
| PREMIUM FUND | |||
| Cost - Department of Social Services (DOS) | |||
| Children's Health Insurance Program (CHIP) | ($1,045,000) | ($1,092,025) | ($1,141,166) |
| ESTIMATED NET EFFECT ON PREMIUM FUND | ($1,045,000) | ($1,092,025) | ($1,141,166) |
| INTERGOVERNMENTAL TRANSFER FUND | |||
| Cost - Department of Social Services (DOS) | |||
| Children's Health Insurance Program (CHIP) | ($1,405,257) | ($1,468,494) | ($1,534,576) |
| ESTIMATED NET EFFECT ON INTERGOVERNMENTAL TRANSFER FUND | ($1,405,257) | ($1,468,494) | ($1,534,576) |
| FEDERAL FUNDS | |||
| Savings - Department of Social Services
(DOS) |
|||
| Children's Health Insurance Program (CHIP) | $79,657,759 | $83,424,359 | $86,988,265 |
| Loss - Department of Social Services
(DOS) |
|||
| Children's Health Insurance Program (CHIP) | ($79,657,759) | ($83,424,359) | ($86,988,265) |
| ESTIMATED NET EFFECT ON FEDERAL FUNDS | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2003 | FY 2004 | FY 2005 |
| LOCAL HEALTH AGENCIES | |||
| Income - State Funds | $0 to $7,315,000 | $0 to $7,644,175 | $0 to $7,988,163 |
| Costs - Direct Medical Services | ($0 to $7,315,000) | ($0 to $7,644,175) | ($0 to $7,988,163) |
| ESTIMATED NET EFFECT ON LOCAL HEALTH AGENCIES | $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 would extend the sunset date for the Children's Health Insurance Program from July 1, 2002, to July 1, 2007.
The proposal contains an emergency clause.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation would not affect Total State Revenue.
SOURCES OF INFORMATION
Department of Health and Senior Services
Department of Social Services
Mickey Wilson, CPA
Acting Director
March 6, 2002