FISCAL NOTE TO

SENATE, No. 613

STATE OF NEW JERSEY

DATED: OCTOBER 9, 1996

      Senate Bill No. 613 of 1996 raises the State supplementary payment for recipients of Supplemental Security Income (SSI) who reside in residential health care facilities (RHCFs) by $200 per month and also directs the Commissioner of Human Services to establish a new living arrangement classification for SSI purposes for persons who reside in Class C licensed boarding houses, subject to the approval of the federal government. This would increase the State supplement for single SSI recipients who reside in RHCF's from $150.05 to $350.05 per month and for married SSI recipients who reside in RHCF's from $510.36 to $710.36 per month. With respect to SSI recipients residing in Class C licensed boarding houses, once federal government approval to establish a new SSI living arrangement for such persons is received, the State supplement for single SSI recipients would increase from $31.25 to $231.25 per month and for married SSI recipients the State supplement would increase from $25.36 to $225.36 per month.

      Department Comments:

      The Department of Human Services (DHS) and the Office of Management and Budget (OMB) have estimated the cost of the legislation at $19,920,000, $20,208,000 and $20,496,000, respectively, in each of the next three fiscal years to assist between 7,000 and 7,200 SSI recipients residing in RHCSs and about 1,300 SSI recipients that reside in Class C boarding homes.

      DHS and OMB further note that the State is the legal guardian for certain SSI recipients who are developmentally disabled and receive residential services from DHS. In such situations, the State is the representative payee for any SSI benefits received by such developmentally disabled clients and the State will recover any benefits the client receives in excess of the cost of the residential services and the amount of funds the client is allowed to retain. OMB and DHS estimate recoveries of about $6.7 million annually, thus, reducing the net annual additional cost to approximately $13.2 million.

      Office of Legislative Services Comments:

      The estimates and comments of DHS and OMB appear reasonable.     It should be noted that the recently enacted federal welfare reform legislation, "The Personal Responsibility and Work Opportunity Reconciliation Act of 1996," will terminate SSI benefits to certain SSI recipients who are legal aliens. While this could reduce the cost of this legislation, such legal aliens might qualify for assistance under the General Assistance program. This could increase total costs as the State would have to pay the entire cost of assistance in a RHCF without any federal SSI benefits. The number of legal aliens who reside in a RHCF and who receive SSI is not known. Similarly, how many former SSI recipients might apply for General Assistance is not known.

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