Tax refund to elderly and disabled.

06LSO-0420.C1

FISCAL NOTE

This bill contains an appropriation of $7,500,000 from the GENERAL FUND.  This appropriation is effective immediately.

	FY 2007	FY 2008	FY 2009
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
GENERAL FUND	3,632,500	3,632,500	3,632,500

Source of Expenditure Increase:

The proposed legislation would increase the number of eligible clients and the size of the refund payments clients are eligible for.

Assumptions:

ü It is estimated clients would increase from about 3,000 to 6,300. 

ü It is assumed the average refund would increase from $347 to $647. 

ü Finally, no data is available as to how the increase in the asset test would impact the number of eligible clients.  For purposes of this estimate, $500,000 per year has been included as a placeholder for potential newly qualified clients, though there is no data upon which to base this portion of the assumption.

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill modifies the Department of Health's budget.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Department of Health

Prepared by:   Don Richards, LSO and Jeff Urry, Dept. of Health    Phone:  777-7881 and 777-6780