OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

HB-6704

AN ACT CONCERNING EXPENDITURES AND REVENUE FOR THE BIENNIUM ENDING JUNE 30, 2015.

AMENDMENT

LCO No.: 8609

House Calendar No.: 678

Senate Calendar No.: 692


OFA Fiscal Note

State Impact: See Below

Municipal Impact: None

Explanation

The amendment eliminates Sections 67, 68, and 69 of the bill, which may impact the spending cap calculation for the budget.

Without the inclusion of Sections 67 through 69 of the bill, the impact on the spending cap is unclear as it is uncertain whether or not any proposed changes in appropriations need to be adjusted in the base year for which the cap is calculated. 

There appear to be three scenarios that could result depending upon the manner of current year base adjustments for purposes of the calculation:

1) No base adjustments are required at all.  Under this scenario, the cap is calculated strictly based on the total level of appropriations contained in the budget bill compared with the total appropriations for FY 13.  Assuming this interpretation, the bill would be under the cap by $2,277.2 million in FY 14 and $162.1 million in FY 15.

2) Base adjustment for all of Medicaid.  Under this scenario, all of the FY 13 appropriations for Medicaid would be adjusted for the net appropriation policy changes in FY 14.  Assuming this interpretation, the bill would be over the spending cap by approximately $154.9 million in FY 14 and under the spending cap by approximately $3.5 million in FY 15.

3) Base adjustment for part of Medicaid.  Under this scenario, all of the FY 13 appropriations for Medicaid except for those related to the Low Income Adult program (the federal reimbursement level of which would increase from 50% to 100% on January 1, 2014) would be rebased.  Assuming this interpretation, the bill would be under the spending cap by approximately $12 million in FY 14 and $162.1 million in FY 15.  Sections 67 through 69 of the bill relate to the elimination and corresponding budgetary treatment of the Medicaid program for low-income adults (LIA) as of January 1, 2014, and the establishment of a new, federally-funded Medicaid Coverage for the Lowest Income Populations (MCLIP) program as of January 1, 2014.  For spending cap purposes, this results in the elimination of the need to adjust the FY 14 calculation base for any Medicaid expenditures occurring under the LIA program after December 31, 2014.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.