Appropriations- Week of February 8, 2010

STAFF CONTACT:  Theresa Kehoe

SF 2151 – Health & Human Services FY10 Supplemental

FLOOR  ACTION:

SF 2151 makes numerous changes to FY10 General Fund dollars. The changes are made so that dollars can be matched to draw additional federal dollars. The changes are required to make sure the State complies with all requirements of the American Recovery and Reinvestment Act of 2009 (ARRA), an economic stimulus package approved by the U.S. Congress.

SF 2151 appropriates $12.7 million in FY10, including:

• $10.2 million from the Emergency Temporary Assistance for Needy Families (TANF) to the Family Investment Program (FIP).
• $2.5 million to Broadlawns Medical Center from the IowaCare Account.

In addition, $1.8 million is transferred from the Mental Health Risk Pool to the Mental Health State Cases Program.

DIVISION I – HEALTH & HUMAN SERVICES FY10

SEC 1 – Medical Assistance, Hawk-I & Hawk-I Expansion Programs – Covering Children

• Increases the FY10 appropriation for Hawk-I and Hawk-I Expansion programs by $5,842,531.
• Incorporates amount reduced from the 10 percent across-the-board cut.
• $510,249 of the funds is allocated for supplemental dental services under Hawk-I.

SEC 2- Emergency Contingency Fund for Temporary Assistance for Needy Families

• Makes corrections to comply with ARRA funding requirements.
• ARAA funds are used to fully fund the Family Investment Program for FY10.
• ARRA funds are used only after other funds are exhausted.
• The Department of Human Services (DHS) is required to report quarterly to the Legislative Services Agency (LSA) and the Department of Management (DOM) regarding this expenditure.

SEC 3 – MEDICAID

• Reduces Medicaid by $91,490,744 to reflect the 10-percent across-the-board cut and transfers made by DOM.

SEC 4 – MEDICAID – Mental Health Institutes

• Appropriates ARRA funds, rather than General Funds for the state mental health institutes
  • Cherokee – $9,098,425
  • Clarinda – $1,977,305
  • Independence – $9,045,894
  • Mount Pleasant – $6,752,587

SEC 5 – MEDICAID

• Earmarks $6 million of Medicaid funds for rebasing of nursing facility reimbursements.
• Earmarks $237,173 for interpreter services related to the federal Children’s Health Insurance Program Reauthorization Act.

SEC 6 – CHILD AND FAMILY SERVICES

• Reduces appropriation to Child and Family Services by $6,568,145 to reflect the 10-percent across-the-board cut and DOM transfers.

SEC 7 – SHELTER CARE

• Increases the maximum available for shelter care to $8,186,460 (an increase of $500,000).

SEC 8 – MENTAL ILLNESS/MENTAL RETARDATION/ DEVELOPMENTAL DISABILITIES (MI/MR/DD) STATE CASES

• Decreases amount appropriated to state cases by $1,437,870 to reflect the 10-percent across-the-board cut.

SEC 9 – DHS FIELD OPEATIONS

• Decreases appropriation to DHS Field Operations by $5,622,687 to reflect the 10-percent across-the-board cut and transfers made by DOM.

SEC 10 – APPROPRIATIONS FROM IOWACARE ACCOUNT

• Appropriates $2.5 million in FY10 from the IowaCare account to DHS to distribute to Broadlawns.

SEC 11 – ARRA FUNDS MEDICAID

• Increases amount appropriated from federal ARRA Funds for Medicaid to $25,874,211 (an increase of $19,637,038). This is necessary to follow federal regulations.
• Strikes earmarks for rebasing of nursing facilities and interpreter services.
• Eliminates ARRA funds for HAWK-I. This is necessary to follow federal regulations.
• Eliminates ARRA funds for the Mental Health Property Tax Relief Fund. This is necessary to follow federal regulations.
• Increases the amount reduced from the state General Fund for Mental Health Property Tax Relief by an additional $363,546.
• Deletes ARRA funds ($680,596) to DHS Field Operations.
• Deletes ARRA funds ($2.5 million) for Child and Family Services.
• Appropriates $286,789 in ARRA funds to State Cases.

SEC 12 – RISK POOL

• Unobligated funds in the State Case Services Risk Pool are transferred to DHS for distribution to counties for state cases (approximately $1.8 million available).

SEC 13 EFFECTIVE UPON ENACTMENT

• This division is effective upon enactment. [2/4: 31-16]