Relates to medicaid expenditure reporting; requires the governor to submit to the legislature within 30 days of the executive budget, a detailed medicaid expenditure report enumerating all medicaid expenditures, the provisions of law authorizing such expenditures and a 3-year financial projection of anticipated expenditures.

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S1077-2011 Actions

• Jan 4, 2012: REFERRED TO FINANCE
• Jan 5, 2011: REFERRED TO FINANCE

S1077-2011 Memo

BILL NUMBER:S1077

TITLE OF BILL:

An act
to amend the state finance law, in relation to medicaid expenditure
reporting

PURPOSE OR GENERAL IDEA OF THE BILL:

To provide legislators, the Governor, and the public with a five-year
review of prior Medicaid spending, and projections for the next three
years, and to establish a requirement for three-year Medicaid
budgeting.

SUMMARY OF PROVISIONS:

1. Annual Medicaid expenditure report: The bill adds a new article 3-A
to the State Finance Law, "Medicaid Expenditure Reporting," to
require that the Governor submit to the legislature within 30 days of
the budget submission a Medicaid expenditure report containing the
following:

A. Current and Preceding Five Year Report. The report is to include:
(a) an enumeration of all Medicaid expenditures; (b) the provisions
of law authorizing the expenditures, their effective dates, and if
applicable, the dates on which they expire or are reduced; (c)
estimates prepared by the appropriate state agency, in conjunction
with the director of the budget, of the cost of such expenditures for
the (i) current fiscal year and (ii) the five preceding fiscal years;
(d) any recommendations to the governor regarding continuing,
modifying, or repealing such Medicaid expenditures, and such other
information regarding expenditures as the governor deems appropriate;
(e) for proposed Medicaid budget changes recommended by the Governor,
an analysis of the number and types of persons and entities expected
to benefit from such expenditures, an estimate of the costs of such
expenditures for the coming fiscal year, and an explanation of the
reasons for the proposals; (f) any comment, if any, on the
effectiveness and efficiency of other expenditures.

B. Three Year Projection. This part of the report is to include a
three- year financial projection which shall show anticipated
medicaid expenditures for the ensuing fiscal year and for the two
years following the ensuing fiscal year by fund type and revenue
source. The projection must also include an explanation of any
proposed changes to the financial plans, and include explanations of
the economic, statutory and other assumptions used to estimate the
disbursements, expenditures, receipts and revenues which are presented

2. Medicaid expenditure budget bill. The bill also requires that the
budget bills submitted by the governor shall include an additional
budget bill which contains all Medicaid appropriations required for
the next three succeeding fiscal years. The bill is to consist of
three sections: (a) The first section contains all appropriations and
reappropriations required for Medicaid expenditures during the next
succeeding fiscal year. (b) The second section contains


appropriations and reappropriations required for Medicaid
expenditures during the second succeeding fiscal year. These
appropriations have as an effective date the first day of the second
succeeding fiscal year, and are otherwise treated as if they had been
passed by the legislature on the first day of that fiscal year. (c)
The third section contains prospective appropriations and prospective
reappropriations required for Medicaid during the third succeeding
fiscal year. Because the State constitution limits the life of an
appropriation to two years, these appropriations will have no
effective date, but will provide an accurate listing of
appropriations that will be required in the third fiscal year. (d)
The budget bill will also include, or the governor may submit an
additional
bill which includes, statutory changes required to implement
appropriations during each of the fiscal years covered in the
Medicaid expenditure appropriation bill.

JUSTIFICATION:

The intent of this bill is to provide more information to the
Legislature, the Governor, and the public concerning one of New
York's major expenditure areas, Medicaid. Too often judgments are
based on what mayor may not happen within the 12-month cycle of the
state fiscal year. By requiring the provision of information over a
longer time-span, and three-year budgeting, policy-makers will have
the opportunity to make long-range decisions.

LEGISLATIVE HISTORY:

2008: S.206 Passed Senate 62-0

FISCAL IMPLICATIONS:

Although no expenditure of state monies would be incurred, this bill
would provide for an improved accounting of state medicaid dollars,
thereby permitting the Legislature and Public with the ability to
attack waste fraud and unnecessary expenditures.

EFFECTIVE DATE:

This act shall take effect immediately.

S1077-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1077

                         2011-2012 Regular Sessions

                              I N  SENATE

                               January 5, 2011
                                 ___________

  Introduced  by  Sens.  GOLDEN, LARKIN -- read twice and ordered printed,
    and when printed to be committed to the Committee on Finance

  AN ACT to amend the state finance law, in relation to medicaid  expendi-
    ture reporting

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. The state finance law is amended by adding  a  new  article
  3-A to read as follows:

                                 ARTICLE 3-A
                       MEDICAID EXPENDITURE REPORTING
  SECTION 30. MEDICAID EXPENDITURE REPORTING; DEFINITIONS.
          31. ANNUAL MEDICAID EXPENDITURE REPORT.
          32. CONFIDENTIALITY PROVISIONS.
          33. MEDICAID EXPENDITURE BUDGET BILL.
    S  30.  MEDICAID  EXPENDITURE  REPORTING; DEFINITIONS. AS USED IN THIS
  ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:

    1. "MEDICAID EXPENDITURES" MEANS ANY ITEM OF EXPENDITURE FROM ANY FUND
  OF THE STATE WHICH IS SPENT PURSUANT TO THE MEDICAL ASSISTANCE  FOR  THE
  NEEDY PROGRAM.
    2.  "COST  OF  MEDICAID EXPENDITURE" MEANS THE ESTIMATED AMOUNT OF ANY
  ITEM OF EXPENDITURE FROM ANY FUND OF THE STATE  IN  FURTHERANCE  OF  ANY
  PROGRAM FUNDED IN ANY MEASURE PURSUANT TO THE MEDICAL ASSISTANCE FOR THE
  NEEDY PROGRAM.
    3.  "ITEM  OF  EXPENDITURE"  MEANS  ANY  MEDICAID  EXPENDITURE FOR ANY
  PURPOSE TO ANY CLASS OR GROUPING OF VENDORS THAT INCLUDES MORE THAN  ONE
  VENDOR.
    S 31. ANNUAL MEDICAID EXPENDITURE REPORT. 1. IN ADDITION TO THE INFOR-
  MATION  REQUIRED  BY  ARTICLE  SEVEN  OF THE CONSTITUTION AND BY SECTION
  TWENTY-TWO OF THIS CHAPTER, THE GOVERNOR SHALL SUBMIT  TO  THE  LEGISLA-
  TURE,  AS  EARLY AS PRACTICABLE, BUT NO LATER THAN THIRTY DAYS FOLLOWING
  THE SUBMISSION OF THE EXECUTIVE BUDGET, A  MEDICAID  EXPENDITURE  REPORT

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD06103-01-1

 S. 1077                             2

  CONTAINING THE FOLLOWING INFORMATION AND STATEMENTS RELATING TO MEDICAID
  EXPENDITURES:

    (A) AN ENUMERATION OF ALL MEDICAID EXPENDITURES;
    (B)  THE PROVISIONS OF LAW AUTHORIZING SUCH EXPENDITURES, THEIR EFFEC-
  TIVE DATES, AND IF APPLICABLE, THE  DATES  ON  WHICH  SUCH  EXPENDITURES
  EXPIRE OR ARE REDUCED;
    (C) IF RELIABLE DATA IS AVAILABLE, ESTIMATES PREPARED BY THE APPROPRI-
  ATE  COMMISSIONER  OR  DIRECTOR  OF  ANY  STATE  AGENCY, AS SUCH TERM IS
  DEFINED IN SECTION TWO-A OF THIS CHAPTER, IN CONJUNCTION WITH THE DIREC-
  TOR OF THE BUDGET, OF THE COST OF SUCH EXPENDITURES FOR THE (I)  CURRENT
  FISCAL YEAR AND (II) THE FIVE PRECEDING FISCAL YEARS;
    (D)  ANY RECOMMENDATIONS TO THE GOVERNOR REGARDING CONTINUING, MODIFY-
  ING, OR REPEALING SUCH MEDICAID EXPENDITURES, AND SUCH OTHER INFORMATION
  REGARDING EXPENDITURES AS THE GOVERNOR DEEMS APPROPRIATE;
    (E) IF THE EXECUTIVE BUDGET INCLUDES  PROPOSALS  FOR  THE  EXPIRATION,
  MODIFICATION,  OR  REPEAL OF SUCH MEDICAID EXPENDITURES OR FOR THE ADDI-
  TION OF MEDICAID EXPENDITURES IN OR TO SUCH ARTICLES OR  SUCH  LAW,  THE
  MEDICAID  EXPENDITURE  REPORT SHALL ALSO CONTAIN, TO THE EXTENT RELIABLE
  DATA IS AVAILABLE, AN ANALYSIS OF THE NUMBER AND TYPES  OF  PERSONS  AND
  ENTITIES  BENEFITING  OR  EXPECTED TO BENEFIT FROM SUCH EXPENDITURES, AN
  ESTIMATE OF THE COSTS OF SUCH EXPENDITURES FOR THE COMING  FISCAL  YEAR,
  AND AN EXPLANATION OF THE REASONS FOR THE PROPOSALS;
    (F)  COMMENT,  IF  ANY,  ON  THE EFFECTIVENESS AND EFFICIENCY OF OTHER
  EXPENDITURES; AND
    (G) GENERAL CAUTIONARY AND ADVISORY NOTES  CONCERNING  LIMITATIONS  OF
  DATA,  ESTIMATION PROCEDURES, SAMPLING ERRORS AND IMPUTED VALUES, PROMI-
  NENTLY DISPLAYED.
    2. THE MEDICAID EXPENDITURE REPORT SHALL INCLUDE A  THREE-YEAR  FINAN-
  CIAL  PROJECTION  WHICH SHALL SHOW ANTICIPATED MEDICAID EXPENDITURES FOR
  THE ENSUING FISCAL YEAR AND FOR THE  TWO  YEARS  FOLLOWING  THE  ENSUING
  FISCAL  YEAR.  FOR THE PURPOSES OF THIS THREE-YEAR FINANCIAL PROJECTION,
  EXPENDITURES  SHALL  BE  PRESENTED  BY  THE  FOLLOWING  PURPOSES:  STATE
  PURPOSES;  LOCAL ASSISTANCE; CAPITAL PROJECTS; DEBT SERVICE; AND GENERAL
  STATE CHARGES; AND RECEIPTS AND REVENUES SHALL  BE  PRESENTED,  FOR  THE
  ENSUING  AND  NEXT  SUCCESSIVE  FISCAL  YEAR BY EACH REVENUE SOURCE. THE
  THREE-YEAR FINANCIAL PROJECTION SHALL  INCLUDE  AN  EXPLANATION  OF  ANY
  CHANGES  TO THE FINANCIAL PLANS SUBMITTED IN ACCORDANCE WITH SUBDIVISION
  ONE OF SECTION TWENTY-TWO OF THIS CHAPTER, AND INCLUDE  EXPLANATIONS  OF
  THE  ECONOMIC,  STATUTORY  AND  OTHER  ASSUMPTIONS  USED TO ESTIMATE THE
  DISBURSEMENTS, EXPENDITURES, RECEIPTS AND REVENUES WHICH ARE PRESENTED.
    S 32. CONFIDENTIALITY PROVISIONS. ANY INFORMATION RELATING TO MEDICAID
  EXPENDITURES FURNISHED BY ANY COMMISSIONER OR DIRECTOR OF A STATE AGENCY
  SHALL BE FURNISHED IN ACCORDANCE WITH ANY APPLICABLE PROVISIONS  OF  LAW
  RELATING TO THE CONFIDENTIALITY OF SUCH INFORMATION.
    S  33.  MEDICAID EXPENDITURE BUDGET BILL. 1. NOTWITHSTANDING ANY OTHER
  CONTRARY PROVISION OF LAW, INCLUDING ANY PROVISION OF SECTION  FORTY  OF
  THIS  CHAPTER,  THE BUDGET BILLS SUBMITTED BY THE GOVERNOR SHALL INCLUDE
  AN ADDITIONAL BUDGET BILL WHICH SHALL CONTAIN ALL  APPROPRIATIONS  WHICH
  THE GOVERNOR FINDS WILL BE REQUIRED FOR MEDICAID EXPENDITURES DURING THE
  NEXT  THREE  SUCCEEDING  FISCAL YEARS. SUCH BUDGET BILL SHALL CONSIST OF
  THREE SECTIONS, AS FOLLOWS:

    (A) THE FIRST SECTION SHALL CONTAIN ALL APPROPRIATIONS AND REAPPROPRI-
  ATIONS WHICH IN THE OPINION OF THE GOVERNOR WILL BE REQUIRED  FOR  MEDI-
  CAID EXPENDITURES DURING THE NEXT SUCCEEDING FISCAL YEAR.  NOTWITHSTAND-
  ING  THE  FOREGOING  PROVISIONS OF THIS SUBDIVISION, SUCH APPROPRIATIONS

 S. 1077                             3

  SHALL BE SUBJECT  TO  THE  LIMITATIONS  ESTABLISHED  BY  LAW,  INCLUDING
  SECTION FORTY OF THIS CHAPTER.
    (B)  THE  SECOND  SECTION SHALL CONTAIN APPROPRIATIONS AND REAPPROPRI-
  ATIONS WHICH IN THE OPINION OF THE GOVERNOR WILL BE REQUIRED  FOR  MEDI-
  CAID  EXPENDITURES DURING THE SECOND SUCCEEDING FISCAL YEAR. SUCH APPRO-
  PRIATIONS SHALL HAVE AS AN EFFECTIVE DATE THE FIRST DAY OF  SUCH  SECOND
  SUCCEEDING FISCAL YEAR, AND SHALL WHEN EFFECTIVE BE SUBJECT TO THE LIMI-
  TATIONS  ESTABLISHED BY LAW, INCLUDING SECTION FORTY OF THIS CHAPTER, AS
  IF SUCH APPROPRIATIONS HAD BEEN PASSED BY THE LEGISLATURE ON  THE  FIRST
  DAY OF SUCH FISCAL YEAR.
    (C)  THE  THIRD  SECTION  SHALL CONTAIN PROSPECTIVE APPROPRIATIONS AND
  PROSPECTIVE REAPPROPRIATIONS WHICH IN THE OPINION OF THE  GOVERNOR  WILL
  BE REQUIRED FOR MEDICAID EXPENDITURES DURING THE THIRD SUCCEEDING FISCAL
  YEAR.  SUBJECT  TO  THE  LIMITATIONS IMPOSED BY SECTION SEVEN OF ARTICLE
  SEVEN OF THE CONSTITUTION, SUCH APPROPRIATIONS MAY CONTAIN NO  EFFECTIVE
  DATE,  BUT SHALL PROVIDE AN ACCURATE LISTING OF APPROPRIATIONS THAT WILL
  BE REQUIRED IN SUCH FISCAL YEAR.
    2. SUCH BUDGET BILL SHALL INCLUDE, OR THE GOVERNOR MAY SUBMIT AN ADDI-
  TIONAL BILL WHICH INCLUDES,  STATUTORY  CHANGES  REQUIRED  TO  IMPLEMENT
  APPROPRIATIONS  DURING  EACH OF THE FISCAL YEARS COVERED IN THE MEDICAID
  EXPENDITURE APPROPRIATION BILL.
    S 2. This act shall take effect immediately.