2020 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Bulova
Restore Community Services Boards Funding

Item 322 #5h

Item 322 #5h

First Year - FY2021 Second Year - FY2022
Health and Human Resources
Grants to Localities FY2021 $9,250,000 FY2022 $9,250,000 GF

Page 335, line 45, strike "$534,717,960" and insert "$543,967,960".
Page 335, line 45, strike "$551,190,641" and insert "$560,440,641".


(This amendment restores $9.3 million each year from the general fund to the base budget for Community Services Boards (CSBs) that had been reduced as a result of Medicaid expansion. The restored funding is needed due to the following: (i) in fiscal year fiscal year 2020, CSBs face roughly double the reduction in general fund dollars that they incurred in fiscal year 2019; (ii) while CSBs are able to bill for services provided to some of the individuals they had been serving without reimbursement, there are still individuals that CSBs serve that do not qualify for Medicaid expansion (in the Northern Virginia area this number is particularly high) and CSBs continue to serve these individuals with no payer source from a now-reduced state general fund allocation; and (iii) the Medicaid rate for most services does not cover the cost to actually deliver the service (state general fund dollars help to reduce the negative impact of this and allow CSBs to continue to serve priority populations). As required in previous budget language, the CSBs have been reporting on revenue collections for the population of uninsured individuals who were CSB clients prior to expansion and for whom the CSBs were able to bill Medicaid after expansion was implemented. In fiscal year 2020, data from those reports indicate that CSBs were able to collect $4,376,188 in the first quarter. Extrapolating that number to three additional quarters yields $17,504,752. Taking into account that a reasonable rate of collection is 90 percent and multiplying the extrapolated number accordingly, the CSBs would anticipate collecting $15,754,277 in fiscal year 2020. The projections for Medicaid expansion anticipated that the CSBs would be able to collect $25.0 million in Medicaid revenues for that population and the CSBs received a state general fund reduction. This request for $9.3 million would cover the difference between the $25.0 million general fund reduction and collections as informed by the current reporting. Because CSBs anticipate this trend in collections to continue for this population, the request is to restore the $9.3 million to the base budget as opposed to a one-time restoration or "backfilling" of funds in fiscal year 2020.)