HB1740 (2006) Detail

Making an appropriation to increase the hourly rate of pay for care providers for persons with developmental and acquired disabilities.


HB 1740-FN-A – AS INTRODUCED

2006 SESSION

06-2758

01/04

HOUSE BILL 1740-FN-A

AN ACT making an appropriation to increase the hourly rate of pay for care providers for persons with developmental and acquired disabilities.

SPONSORS: Rep. Wendelboe, Belk 1; Rep. Emerton, Hills 7

COMMITTEE: Finance

ANALYSIS

This bill makes an appropriation to the department of health and human services for the purposes of increasing the hourly rate of pay for care providers for persons with developmental and acquired disabilities. The appropriation made in this bill is to be reduced by the amount of federal matching funds received for the purposes of the bill.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2758

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT making an appropriation to increase the hourly rate of pay for care providers for persons with developmental and acquired disabilities.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Appropriation. There is hereby appropriated the sum of $2,000,000, for the biennium ending June 30, 2007, to the department of health and human services for the purpose of increasing the hourly pay of direct care providers for persons with developmental and acquired disabilities. This state appropriation shall be reduced by the amount of matching federal funds received by the department. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

2 Effective Date. This act shall take effect upon its passage.

LBAO

06-2758

12/13/05

HB 1740-FN-A - FISCAL NOTE

AN ACT making an appropriation to increase the hourly rate of pay for care providers for persons with developmental and acquired disabilities.

FISCAL IMPACT:

      The Department of Health and Human Services states this bill will increase state expenditures by $1,000,260 and state restricted revenue by $500,130 in both FY 2006 and FY 2007. There will be no fiscal impact on county and local revenue or expenditures.

      This bill appropriates $2,000,000 from the general fund to the Department of Health and Human Services for the biennium ending June 30, 2007 for the purposes of this act.

METHODOLOGY:

    The Department indicated federal matching funds are available through the Medicaid Developmentally Disabled Waiver at the rate of 50%. This bill provides that the state appropriation shall be reduced by federal matching funds available to the Department. The Department assumes an appropriation of approximately $1,000,000 in general funds would be sufficient to provide the $2,000,000 total appropriation anticipated in this bill, and that $1,000,000 will be spent in each year of the biennium. The Department estimates there are 1,893 part and full-time direct service workers in the area agency system equivalent to 1,474 full-time employees. The Department assumes 31.13% of the appropriation would pay for payroll taxes and benefits and a full-time position is 2,080 hour per year. Based on the assumptions the average hourly pay raise would be $0.2488.

    Hourly Increase $0.2488

    Multiplied x 2,080 hours per year x 2,080

    Average annual Increase per employee $ 517.50

    Times full-time equivalent employees 1,474

                      $ 762,800

    Average payroll taxes & benefits @ 31.13% 237,460

    Annual Cost of Pay Raise $1,000,260

                      LBAO

                      06-2758

                      12/13/05

    The Department made no assumptions concerning future years since this bill appropriates funds for the current biennium only.