S2152

A Supplement to "An Act making appropriations for the support of the State Government and the several public purposes for the fiscal year ending June 30, 1997 and regulating the disbursement thereof," approved June 28, 1996 (P.L.1996, c.42).

1. In addition to the amounts appropriated under P.L.1996, c.42, there are appropriated out of the General Fund the following sums for the purposes specified:

DIRECT STATE SERVICES 26 DEPARTMENT OF CORRECTIONS 10 Public Safety and Criminal Justice 16 Detention and Rehabilitation 7025 System-Wide Program Support
13-7025 Institutional Program Support ...........................................		$35,757,000
Total Appropriation, System-Wide Program Support ............		$35,757,000
Special Purpose:
Increased Operating Costs .................................	($35,757,000)	0

From the amount appropriated hereinabove for Increased Operating Costs, such sums as shall be determined by the Commissioner of Corrections shall be transferred to other accounts within the Department of Corrections.

66 DEPARTMENT OF LAW AND PUBLIC SAFETY 10 Public Safety and Criminal Justice 12 Law Enforcement
99-1200 Management and Administrative Services .........................		$1,254,000
Total Appropriation, Law Enforcement .................................		$1,254,000
Special Purpose:
Increased Operating Costs .................................	($254,000)
STFA Grievance Settlement ..............................	(1,000,000)	0

10 Public Safety and Criminal Justice 18 Juvenile Services 1500 Division of Juvenile Services
99-1500 Management and Administrative Services .........................		$771,000
Total Appropriation, Division of Juvenile Services .................		$771,000
Special Purpose:
Increased Operating Costs .................................	($771,000)	0

From the amounts appropriated hereinabove for Increased Operating Costs, such sums as shall be determined by the Attorney General shall be transferred to other accounts within the Department of Law and Public Safety.

GRANTS-IN-AID 26 DEPARTMENT OF CORRECTIONS 10 Public Safety and Criminal Justice 16 Detention and Rehabilitation 7025 System-Wide Program Support--Grants-In-Aid
13-7025 Institutional Program Support ................................................		$4,462,000
Total Appropriation, System-Wide Program Support .................		$4,462,000
Grants:
Purchase of Services for Inmates Incarcerated In County Penal Facilities ................................	($4,462,000)	00

54 DEPARTMENT OF HUMAN SERVICES 20 Physical and Mental Health 24 Special Health Services 7540 Division of Medical Assistance and Health Services--Grants-In-Aid
22-7540 General Medical Services ........................................................		$80,000,000
Total Appropriation, Division o f Medical Assistance and Health Services .........................................................................		$80,000,000
Grants:
Payments for Medical Assistance Recipients-- Outpatient Hospital ...........................................	($53,000,000)
Payments for Medical Assistance Recipients-- Physician ...........................................................	($15,067,000)
Community Care Programs for the Elderly and Disabled ......................................................	($11,933,000)	0

2. Upon certification by the Director of the Division of Budget and Accounting in the Department of the Treasury that federal funds to support the expenditures listed below are available, the following sums are appropriated:

FEDERAL FUNDS 54 DEPARTMENT OF HUMAN SERVICES 20 Physical and Mental Health 24 Special Health Services 7540 Division of Medical Assistance and Health Services
22-7540 General Medical Services ........................................................		$76,550,000
Total Appropriation, Division o f Medical Assistance and Health Services .........................................................................		$76,550,000
Grants:
Payments for Medical Assistance Recipients-- Outpatient Hospital ...........................................	($50,314,000)
Payments for Medical Assistance Recipients-- Physician ...........................................................	($14,303,000)
Community Care Programs for the Elderly and Disabled ......................................................	($11,933,000)	0

66 DEPARTMENT OF LAW AND PUBLIC SAFETY 10 Public Safety and Criminal Justice 12 Law Enforcement 1200 Division of State Police
24-1200 Marine Police Operations ......................................................		$267,000
Total Appropriation, Division of State Police ............................		$267,000
Grants:
Recreational Boating Safety Financial Assistance .........................................	($267,000)	0

This bill makes fiscal year 1997 General Fund supplemental appropriations of $40,219,000 for the Department of Corrections, $2,025,000 for the Department of Law and Public Safety, $80,000,000 for the Department of Human Services and $76,817,000 in federal funds for the Department of Human Services and the Department of Law and Public Safety.

The Department of Corrections appropriations consist of $35,757,000 in Direct State Services funding and $4,462,000 in Grants-in-Aid funding. The Direct State Services appropriations are composed of $11,940,000 in unbudgeted costs related to the recent settlement of the Police Benevolent Association (PBA) union contract and an operating deficit of $23,800,000 that is primarily due to custody overtime costs in excess of the amount budgeted.

The Direct State Services appropriation for the Department of Law and Public Safety is related to the fiscal year 1996 and fiscal year 1997 costs of the recently settled contract negotiations with the PBA union and a recent grievance settlement with the State Trooper's Fraternal Association (STFA). The Juvenile Services appropriation of $771,000 reflects the contract costs for corrections officers at the two juvenile correctional facilities. An additional $254,000 is needed to fund the contract costs for the Weights and Measures inspectors, Alcoholic Beverage Control inspectors, and Capital Police and Marine Police. The STFA and the State have reached a tentative settlement on a grievance filed on behalf of enlisted personnel who were required to maintain certain physical fitness standards as part of a practice instituted by State Police over ten years ago. The estimated costs for this settlement is $1,000,000 and will be paid out to the approximately 1,700 enlisted personnel prior to the close of the fiscal year.

The Department of Corrections Grants-In-Aid appropriation is required due to inmate population increases that have been higher than anticipated. The fiscal year 1997 budget for the county reimbursement account was based on a net monthly increase of 175 inmates. In the fall of 1996 revised data indicated that a net monthly increase of 100 inmates per month was more realistic which would produce a surplus of $2 million which was utilized to reduce the Direct State Services deficit. However, the February actual increase was 200 inmates over budget which will cause a significant increase in county reimbursement costs. Also, the High Point satellite unit will close and the State will lose approximately 250 bedspaces; this will result in additional costs.

The supplemental appropriation of $80,000,000 in the General Fund for the Department of Human Services is to support the continued provisions of medical and health services to eligible populations. The need for this supplemental appropriation has been realized for months, and was anticipated when the Governor's Budget Message for fiscal year 1998 was presented.

Expenditures for Outpatient Hospital, Community Care Programs, and several smaller accounts are coming in higher than originally projected. Current projections for the Outpatient Hospital account suggest that an additional $53,000,000 will be needed. Part of the underestimate was technical and results from the effect that certain retrospective financial transactions had on forecasting models. Also, certain kinds of clinic expenditures are being routed through outpatient hospital departments to gain larger reimbursements. The Division of Medical Assistance and Health Services is working on revised regulations that will clarify when free-standing clinics may and may not be considered as hospital-associated.

The $11,933,000 needed for Community Care programs are the result of program growth, especially for Personal Care services and expenditure levels that are higher than originally projected.

The remaining $15,067,000 represents the net need in the Physician account and several other smaller accounts. It represents the net need after offsetting small projected surpluses in some accounts against projected deficits in other accounts. The reason is that expenditures have been somewhat higher than were originally projected.

The additional federal funds appropriation of $76,550,000 for the Department of Human Services is needed to match the State funding for fiscal year 1997: $50,314,000 for Outpatient Hospital, $14,303,000 for Physician Services, and $11,933,000 for Community Care programs administered by the Division of Medical Assistance and Health Services.

In fiscal year 1997 the Division of State Police Marine Police Operations Bureau has been awarded an additional $517,000 in federal funds from the United States Coast Guard as part of the Recreational Boating Safety Financial Assistance program. The amount previously appropriated for this purpose in fiscal year 1997 is $1 million. According to a language provision in the fiscal year 1997 Appropriations Act, agencies are permitted to receive unanticipated increases in federal funds up to 25 percent of the current appropriation. In this case the Bureau has already been appropriated by Directory Letter from the Director of the Division of Budget and Accounting $250,000 (25 percent of $1.0 million per the language provision) of the $517,000. This supplemental appropriation of $267,000 is necessary to make available the balance of additional funding for which the Bureau is eligible.

Makes fiscal year 1997 General Fund supplemental appropriations of $122,244,000 in State funds and $76,817,000 in federal funds.