LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE, No. 1129

STATE OF NEW JERSEY

DATED: MARCH 12, 1997

      Bill Summary:

      Senate Bill No. 1129 (1R) of 1996 extends the benefits of the "Pharmaceutical Assistance to the Aged and Disabled" (PAAD) program to persons who receive disability benefits under certain federal programs other than Social Security such as the "Railroad Retirement Act of 1974," the federal civil service retirement program and any federal law administered by the Department of Veterans Affairs where the individual's disability is rated 60% of higher.

      Agency Comments:

      The Department of Health and Senior Services (DHSS) and the Office of Management and Budget have not provided any fiscal information on the legislation.

      Office of Legislative Services Comments:

      The Office of Legislative Services is not able to estimate the cost of the legislation as the number of persons receiving disability benefits under the federal programs enumerated in the legislation and whose incomes meet the current PAAD income limits of $17,550 for individuals and $21,519 for married couples is not known.

      However, for every 1,000 additional disabled persons who become eligible for the program, costs would increase as follows:

∙    PAAD costs would increase by about $1.9 million, based on current expenditure patterns of the PAAD disabled population.

∙    Lifeline costs would increase by a maximum of $225,000.

∙    Administrative costs, based on 10% of total costs, would be about $200,000.

      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.