[Corrected Copy]

LEGISLATIVE FISCAL ESTIMATE TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 1590

STATE OF NEW JERSEY

DATED: JUNE 7, 1996

      The Assembly Committee Substitute for Assembly Bill No. 1590 of 1996 clarifies that the purpose of the Health Access New Jersey subsidized insurance program, established pursuant to P.L.1992, c.160 (C.26:2H-18.51 et seq.), is to provide health insurance coverage for low-income, uninsured children as well as working people and those temporarily unemployed. The bill funds the program at $10 million in 1996 and $25 million in 1997 from General Fund revenues appropriated to the Health Access New Jersey subsidy account in the Health Care Subsidy Fund.

      The bill also provides funding for community-based drug abuse treatment programs in the amount of up to $10 million in 1996 and $20 million in 1997 and each succeeding year. These revenues will be generated from third party liability recoveries by the State.

      The Office of Legislative Services (OLS) notes that the General Fund contribution of $10 million indicated for the Health Access New Jersey subsidy account during calendar year 1996 is not included in the Governor's FY 1997 Budget Recommendation. Depending on programmatic needs, enactment of this legislation could imply the need for an appropriation of approximately $22.5 million in FY 1997 ($10 million applicable to calendar year 1996 and one-half of the $25 million applicable to calendar year 1997). However, this is not clear at the present time; the second installment may be deferred until FY 1998. Moreover, the OLS notes that funding for charity care and the Hospital Health Care Subsidy account (now pending before the Legislature as the First Reprint of the Assembly Committee Substitute for Assembly Bill No. 1532 of 1996) would also authorize the appropriation of General Fund revenues for the Health Care Subsidy Fund over the next two years. Thus, if both funding bills are enacted, the total amount of General Fund dollars authorized for health care subsidies (charity care and insurance) over the two years would be $91 million.

      Finally, the OLS notes that the bill also authorizes the use of revenues recovered from third party liabilities to fund community-based residential and inpatient drug abuse treatment services. While not a direct charge against the General Fund, the dedication of these cost recoveries represents a potential loss of revenue to the State, since these monies would otherwise be deposited in the General Fund.

      This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.