Health care provider loan repayments.

06LSO-0258.C2

FISCAL NOTE

This bill contains an appropriation of $10,000,000 from the BUDGET RESERVE ACCOUNT.

This bill contains an appropriation of $93,000 from the GENERAL FUND.

The expenditure increase is an explanation of the use of the appropriated funds, not in addition to them.

	FY 2007	FY 2008	FY 2009
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
BUDGET RESERVE ACCOUNT	850,000	1,975,000	3,333,333

Source of expenditure increase: 

$6,000,000 for loan repayment to physicians and dentists pursuant to W.S. 9-2-118

$4,000,000 for loan repayment to allied health professionals pursuant to W.S. 9-2-119

Background Facts:

1. This program was established by legislation in the 2004 session with a one-time allocation of $990,000.  The Office of Rural Health (ORH) has overseen one complete round of funding and will complete a second round of funding in December 2005.  Award payments will begin in January 2006.

2. Physicians and dentists may receive a total maximum award of $90,000 distributed over a 3-year period.  Allied health care professionals may receive a maximum award of $30,000 distributed over a 3-year period. 

3. The 2004 legislation required a local community contribution of 25% of the total award per recipient for each provider category.  This proposed legislation eliminates the 25% contribution requirement for allied health care providers. 

Assumptions:

1. The number of awardees per year is estimated based on ORH’s experience to date.

2. Each awarded will be funded up to the maximum amount allowable.

3. The full allocation of the proposed $10 million will be awarded over a 3-year period (FY 2007 – FY 2009).

4. Administrative expenses are computed for this allocation only and could change if funding is reallocated at a later date.

5. The exact timing of the contracts is variable within each fiscal year.  Some administrative costs will continue through Fiscal Year 2011 and possibly in 2012 in order to pay out awards obligated in previous years. 

6. Expenditure estimate for FY 2010 is $2,483,333 and for FY 2011 is $1,358,333.

7. ORH will have administrative costs for management of the application and award process and for on-going award distribution and monitoring. Budget authority would be necessary to carry over and expend unspent funds remaining after FY 2008.

Prepared by:   Scott Hayes, Dept. of Health Phone:  777-7293

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

In addition, 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           Phone:  777-7881