LEGISLATIVE FISCAL ESTIMATE TO

 SENATE, No. 722

STATE OF NEW JERSEY

DATED: JULY 18, 1996

      Senate Bill No. 722 of 1996 provides that in determining eligibility for the "Pharmaceutical Assistance to the Aged and Disabled" (PAAD) program, P.L.1975, c.194 (C.30:4D-20 et seq.), annual income shall not include veterans' entitlements, such as veterans' disability payments and veterans' pensions which are provided by the federal Department of Veterans Affairs (DVA).

      The Department of Human Services and the Office of Management and Budget have not provided any fiscal information on the legislation.

      As of September 1995, 57,406 veterans in New Jersey were receiving disability compensation benefits and 5,643 veterans were receiving pension benefits from the DVA. Veterans receiving pension benefits are generally more than 65 years of age with low incomes; however, the exact number of veterans within these groups who would meet PAAD's age and income guidelines cannot be determined because such data are unknown. It is also difficult to estimate how many veterans receiving these benefits already qualify for PAAD or how many are currently eligible for drugs through the DVA, and thus would be ineligible for PAAD benefits.

      Although the number of individuals who would now be eligible for PAAD and the number of individuals who would not be terminated from the program cannot be accurately determined, the cost per recipient of PAAD benefits can be estimated. Based on revised FY 1996 data, approximately $750 per eligible recipient was appropriated for PAAD claims in both Casino Revenue Funds and General Funds. In addition, costs of approximately $225 per recipient household would be incurred for the Lifeline program, for which eligibility is tied to PAAD eligibility. Administrative costs, dependent on the number of new eligible recipients, would also be incurred. 

      The 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.