2013 Session

Budget Amendments - HB1500 (Committee Approved)

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Reflect One-Time Revenue from Arbitration Settlement

Item 307 #10h

Item 307 #10h

First Year - FY2013 Second Year - FY2014
Health And Human Resources
Medical Assistance Services, Department of FY2013 ($21,680,000) FY2014 $0 GF
FY2013 $21,680,000 FY2014 $0 NGF

Page 264, line 16, strike "$423,940,204" and insert "$445,620,204".
Page 280, after line 14, insert:
"JJJJ. Contingent upon the Commonwealth not receiving the expected revenue in fiscal year 2013 from the arbitration settlement with tobacco companies as part of the Master Settlement Agreement, the Director, Department of Planning and Budget, is authorized to appropriate from the unappropriated general fund balance in this act, and, if necessary, transfer general fund appropriation from the second year to the first year to backfill the shortage of up to $21,680,000 in general fund for the Medicaid program."

(This amendment reflects the increased revenue in fiscal year 2013 from the Master Settlement Agreement (MSA) with tobacco manufacturers as a result of a recent tentative agreement. Many states have been involved in arbitration for some time over a dispute with tobacco companies regarding non-participating manufacturer adjustments. In December 2012, 17 states entered into a preliminary settlement with tobacco companies. If approved by the arbitration panel in late January 2013, Virginia will receive a one-time increase in revenue as a result of previously withheld payments being released from escrow. The Office of the Attorney General projects Virginia's MSA payment will be $172 million for fiscal year 2013, which is $52.2 million higher than currently projected. Of this amount 41.5 percent will be deposited to the Health Care Fund, which is used as state match for Medicaid. Therefore, $21.7 million of general fund will be offset in fiscal year 2013 with Health Care Fund revenue.)