Report Title:

Emergency Appropriation; DOH

 

Description:

Appropriates $4,980,523 in general fund revenues and $4,111,237 from the Developmental Disabilities Interdepartmental Transfer Fund as an emergency appropriation to enable the Developmental Disabilities Division (DDD) to meet state-approved target numbers under the current Medicaid home and community based service and ensure the receipt of federal Medicaid reimbursements.  (HB1371 HD2)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1371

TWENTY-FOURTH LEGISLATURE, 2007

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

MAKING AN EMERGENCY APPROPRIATION FOR THE DEVELOPMENTAL DISABILITIES DIVISION OF THE DEPARTMENT OF HEALTH.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

     SECTION 2.  The purpose of this Act is to appropriate additional funds to the department of health for the State's medicaid title XIX programs, which include the developmental disabilities or mentally retarded home and community-based services and the medicaid state plan intermediate care facilities for the mentally retarded in the community program, to meet a critical funding emergency.  The additional funds are necessary to support current clients and to reasonably admit individuals into the program to fulfill the developmental disabilities division's obligations under the settlement agreement in HDRC v. State, United States District Court, Civil No. 03-00524 HG-KSC, and comply with the United States Supreme Court's decision in Olmstead v. Zimring, 527 U.S. 581, 119 S. Ct. 2176 (1999), and the requirements of chapter 333F, Hawaii Revised Statutes, to support people to live in the community.

     The developmental disabilities interdepartmental transfer fund or U-fund ceiling constitutes a limit on the department of health's ability to receive federal medicaid reimbursements transferred from the department of human services back to the department of health.  These funds are in turn reallocated for expenditures to make further claims for federal reimbursement.  Once the department of health has exceeded the statutory limitation of the U-fund, the ability to expend the resources that it receives is impaired.  Therefore, the increase in the U-fund ceiling is now critically necessary to ensure timely expenditure of the general fund emergency appropriation contained in this measure.

     SECTION 3.  In accordance with section 9 of article VII of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the general fund expenditure ceiling for fiscal year 2006-2007 has already been exceeded by $90,137,694 or 1.68 per cent.  The appropriations contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2006-2007 to be exceeded by an additional $4,980,523, or an additional 0.093 per cent.  The calculation contained in the foregoing sentence relates only to the amount of general funds appropriated in this Act for fiscal year 2006-2007.  The reasons for exceeding the general fund expenditure ceiling are that the appropriations made in this Act are necessary to serve the public interest and to meet the needs provided for by this Act.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $4,980,523 or so much thereof as may be necessary for fiscal year 2006-2007 to carry out the purposes of this Act.

     SECTION 5.  There is appropriated out of the developmental disabilities interdepartmental transfer fund the sum of $4,111,237 or so much thereof as may be necessary for fiscal year 2006-2007 to carry out the purposes of this Act.

     SECTION 6.  The sums appropriated in sections 4 and 5 shall be expended by the department of health.

     SECTION 7.  This Act shall take effect upon its approval.