House of Representatives

HB 2359

disproportionate hospital share funding

Sponsors: Representative Flake, Senator Brown: Representative Anderson, et al.

DP	Committee on Counties & Municipalities
X	Committee on Appropriations
	Caucus and COW
	As Passed the House

Amends Laws 2000, Chapter 351 to update fiscal years and change the set fiscal year [FY] used in the prescribed base limit calculation.

History

Each year legislation is passed which requires the Economic Estimates Commission [EEC] within the Department of Revenue to adjust the county expenditure limit for disproportionate share state and federal funding. The annual session law requires the EEC to decrease a county’s expenditure base limit by the state and federal disproportionate share payments received in a fiscal year, then recalculate the county’s expenditure limit using the adjusted base limit for that fiscal year. Currently, only Maricopa and Pima counties have an adjustment to their expenditure limitations for disproportionate share payments.

The Arizona Constitution requires the EEC to determine each year the expenditure limit for the following fiscal year for each county, community college district, city, and town. The Constitution requires that the limitation be calculated based upon the actual payments of local revenues of FY 1979-1980, referred to as the base limit. Each year, the base limits for local jurisdictions are adjusted for population and inflation to reach the expenditure limit. The inflation index used by the EEC is the Gross Domestic Product [GDP] price deflator, which is based on FY 1979-1980 as set forth in the Arizona Constitution.

Provisions

· Makes the transfer of funding for disproportionate share health services extend through FY 2002-2003 [Amends Laws 2000 by changing FY 2000-2001 to 2002-2003].

· Requires the EEC to decrease the base limit of each county in which a county receives disproportionate share payments using a prescribed formula [Reflects Laws 2000].

· Within the prescribed formula, the GDP price deflator is based on the same fiscal year used to calculate expenditure limitations for FY 2001-2002 and 2002-2003, respectively [Amends Laws 2000 from the specific language of FY 1991-1992 to the same FY used to calculate expenditure limitations for FY 2001-2002 and 2002-2003 respectively].

· Requires the EEC to adjust the county expenditure limitations for FY 2001-2002 and 2002-2003 [Reflects Laws 2000 with exception of FY 1991-1992 to the same FY used to calculate expenditure limitation for FY 2001-2002 and 2002-2003].

· Provides the calculations for FY 2001-2002 and 2002-2003 use the same prescribed base limit for Maricopa and Pima counties, respectively, for purposes of determining the adjustment [Reflects Laws 2000 with exception of year change].

HB 2359 passed the Counties & Municipalities Committee unamended.

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45th Legislature

First Regular Session 2 March 7, 2001

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