Colorado Legislative Council Staff
STATE
REVISED FISCAL NOTE
(Replaces Fiscal Note dated January 2, 1998)
General Fund Expenditure Impact
Cash Fund Revenue and Expenditure Impact
Drafting Number: Prime Sponsor(s): |
LLS 98-433 Rep. Takis Sen. Coffman |
Date: Bill Status: Fiscal Analyst: |
January 12, 1998 House SVMA Steve Tammeus (866-2756) |
TITLE: CONCERNING A STATE VETERANS NURSING HOME ON THE SITE OF THE FORMER FITZSIMONS ARMY MEDICAL CENTER, AND MAKING AN APPROPRIATION THEREFOR.
Summary of Legislation
STATE FISCAL IMPACT SUMMARY |
FY 1998/99 |
FY 1999/00 |
FY 2000/01 |
FY 2001/02 |
FY 2002/03 |
State Revenues General Fund Federal Funds |
|
|
|
$19,679,842 |
$915,206 |
State Expenditures General Fund Capital Construction Federal Funds |
$5,661,419 5,661,419 |
$38,328 |
$29,528 |
5,661,419 5,661,419 19,679,842 |
$1,223,654 915,206 |
FTE Position Change |
0 |
0 |
0 |
0 |
12.1 |
Local Government Impact — This facility is estimated to create 239 new jobs in Aurora. |
The information provided in this fiscal note supersedes all information included on the Facility Program Plan and capital construction request previously submitted by the Department of Human Services for the Fitzsimons Veterans Nursing Home.
This bill authorizes the Department of Human Services, Division of State and Veterans Nursing Homes under the Division of Direct Services, to construct a state veterans nursing home on the site of the former Fitzsimons Army Medical Center. The bill requires the facility to provide skilled nursing as well as domiciliary beds. The bill authorizes the department’s executive director to accept any gifts inter vivos of property that may be donated to the state by any county, municipality, or special district for the purpose of nursing homes.
The bill appropriates $5,661,419 from the Capital Construction Fund to the Department of Human Services for FY 1998-99 to support the project. The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.
State Revenues
The Fitzsimons Veterans Nursing Home operating revenues identified in Table 1 are based upon the following assumptions:
• census development is predicated upon an average occupancy of 90 percent at 243 total residents; 162 nursing home residents and 81 domiciliary residents;
• revenue will be comprised of federal veterans payments, patient payments, Medicaid payments, private pay, and other sources;
• federal veterans payments represent approximately 28 percent of the total revenue;
• the nursing home is expected to be self-sustaining by FY 2004-05;
• the domiciliary serves indigent veterans ineligible for Medicaid reimbursement thus requiring annual General Fund appropriations to offset operating expenditures; and
• revenue projections are based upon current federal reimbursements and do not include any adjustments for potential changes in the rate setting methodology or eligibility at the federal level.
State Operating Expenditures
The Fitzsimons Veterans Nursing Home operating expenditures identified in Table 2 are based upon the following assumptions:
• the facility start-up period will commence mid-year FY 2002-03 and will last for 18 months. During this time the facility will employ essential staff, and purchase and install equipment prior to resident occupancy;
• the facility (nursing home and domiciliary) will open July 1, 2003;
• estimates are based on FY 1996-97 actual per patient daily expenses for the Rifle State Veterans Nursing Home and the Homelake Domiciliary;
• contract personal services are expected to be used for certain physician, dental, physical therapy, dietary, and pharmaceutical programs; and
• security services and ground maintenance are estimated at $38,328 for FY 1999-2000 and $29,528 for FY 2000-01.
Capital Construction Expenditures
The Fitzsimons Veterans Nursing Home capital construction expenditures identified in Table 3 are based upon the following assumptions;
•
the Department of Human Services has negotiated a memorandum of understanding (MOU) with the City of Aurora and the Fitzsimons Redevelopment Authority (FRA). The MOU stipulates the FRA will acquire the site consisting of approximately 15 acres for the project from the Army and transfer the property, at no cost, to the State. Conveyance is anticipated for June 1999. The MOU also specifies obligations for site and utility development;
• the facility will be constructed using a Veterans Administration (VA) construction grant whereby the VA provides 65 percent of the construction costs;
• the state is responsible for the remaining 35 percent of construction costs and agrees to operate the facility as a state veterans nursing home for a minimum of 20 years;
• 50 percent of the state’s 35 percent match must be available prior to design with no further state action required in order for the project to be listed as a Priority 1 project by the U.S. Department of Veterans Affairs. The Department of Human Services anticipates federal funding will be available in October, 2001;
• state funding will be available June, 1998 (upon signature of the Governor) to start architectural and engineering design, and construction documents;
• all construction bid documents are subject to VA final approval; and
• construction will commence in October, 2001 and be completed by April 15, 2003 with occupancy on July 1, 2003.
Expenditures Not Included
Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:
• leased space; and
• indirect costs.
Local Government Impact
The Fitzsimons State Veterans Nursing Home is anticipated to create 240 new jobs in the City of Aurora. The fiscal impact of these jobs cannot be estimated at this time.
Spending Authority
This fiscal note would imply the provisions of this bill will require a General Fund transfer of $5,661,419 to the Capital Construction Fund for appropriation to the Department of Human Services for FY 1998-99.
Departments Contacted
Legislative Council Staff Human Services
Table 1 - Fitzsimons State Veterans Nursing Home, Annual Operating Revenue
|
FY 1998-99 |
FY 1999-00 |
FY 2000-01 |
FY 2001-02 |
FY 2002-03 |
FY 2003-04 |
FY 2004-05 |
FY 2005-06 |
Nursing Home |
|
|
|
|
|
|
|
|
Federal |
$0 |
$0 |
$0 |
$0 |
$686,405 |
$1,298,454 |
$2,849,058 |
$3,018,099 |
Patient |
0 |
0 |
0 |
0 |
0 |
1,569,301 |
3,443,349 |
3,647,651 |
Medicaid |
0 |
0 |
0 |
0 |
0 |
1,279,565 |
2,807,613 |
2,974,195 |
Private Pay |
0 |
0 |
0 |
0 |
0 |
332,481 |
729,527 |
772,812 |
Other |
0 |
0 |
0 |
0 |
0 |
39,650 |
87,000 |
92,162 |
Subtotal |
$0 |
$0 |
$0 |
$0 |
$686,405 |
$4,519,451 |
$9,916,547 |
$10,504,919 |
Domiciliary |
|
|
|
|
|
|
|
|
Federal |
$0 |
$0 |
$0 |
$0 |
$228,801 |
$218,432 |
$391,626 |
$413,557 |
Patient |
0 |
0 |
0 |
0 |
0 |
481,799 |
863,816 |
912,190 |
Medicaid |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Private Pay |
0 |
0 |
0 |
0 |
0 |
167,718 |
300,701 |
317,540 |
Other |
0 |
0 |
0 |
0 |
0 |
19,779 |
35,461 |
37,447 |
Subtotal |
$0 |
$0 |
$0 |
$0 |
$228,801 |
$887,728 |
$1,591,604 |
$1,680,734 |
Total |
$0 |
$0 |
$0 |
$0 |
$915,206 |
$5,407,179 |
$11,508,151 |
$12,185,653 |
Table 2 - Fitzsimons Veterans Nursing Home, Annual Operating Expenditures
|
FY 1998-99 |
FY 1999-00 |
FY 2000-01 |
FY 2001-02 |
FY 2002-03 |
FY 2003-04 |
FY 2004-05 |
FY 2005-06 |
Nursing Home |
|
|
|
|
|
|
|
|
FTE |
0 |
0 |
0 |
0 |
8.8 |
113.6 |
197.6 |
197.6 |
Personal Services |
$0 |
$0 |
$0 |
$0 |
$376,376 |
$4,000,032 |
$6,846,508 |
$7,016,256 |
Contract Services |
0 |
38,328 |
29,528 |
0 |
12,650 |
164,020 |
168,190 |
193,419 |
Operating |
0 |
0 |
0 |
0 |
146,000 |
715,399 |
1,569,724 |
1,662,859 |
Equipment |
0 |
0 |
0 |
0 |
1,056,007 |
0 |
0 |
0 |
Utilities |
0 |
0 |
0 |
0 |
30,000 |
82,931 |
181,966 |
192,763 |
Subtotal |
$0 |
$38,328 |
$29,528 |
$0 |
$1,621,033 |
$4,962,382 |
$8,766,388 |
$9,065,297 |
Domiciliary |
|
|
|
|
|
|
|
|
FTE |
0 |
0 |
0 |
0 |
3.3 |
28.9 |
41.4 |
41.4 |
Personal Services |
$0 |
$0 |
$0 |
$0 |
$138,825 |
$1,073,936 |
$1,357,409 |
$1,391,063 |
Contract Services |
0 |
0 |
0 |
0 |
0 |
41,300 |
42,350 |
43,400 |
Operating |
0 |
0 |
0 |
0 |
26,000 |
221,423 |
396,989 |
419,220 |
Equipment |
0 |
0 |
0 |
0 |
352,002 |
0 |
0 |
0 |
Utilities |
0 |
0 |
0 |
0 |
1,000 |
84,915 |
152,244 |
160,769 |
Subtotal |
$0 |
$0 |
$0 |
$0 |
$517,827 |
$1,421,574 |
$1,948,992 |
$2,014,452 |
Total |
$0 |
$38,328 |
$29,528 |
$0 |
$2,138,860 |
$6,383,956 |
$10,715,380 |
$11,079,749 |
Table 3 - Fitzsimons Veterans Nursing Home, Construction Costs
|
FY 1998-99 |
FY 1999-00 |
FY 2000-01 |
FY 2001-02 |
Total |
Demolition and Development |
$631,000 |
$0 |
$0 |
$681,209 |
$1,312,209 |
Professional Services |
2,791,861 |
0 |
0 |
0 |
2,791,861 |
Construction |
0 |
0 |
0 |
23,334,983 |
23,334,983 |
Equipment |
0 |
0 |
0 |
2,093,000 |
2,093,000 |
Miscellaneous |
2,238,558 |
0 |
0 |
(767,931) * |
1,470,627 |
Total |
$5,661,419 |
$0 |
$0 |
$25,341,261 |
$31,002,680 |
CCFE |
$5,661,419 |
$0 |
$0 |
$5,661,419 |
$11,322,838 |
FF |
$0 |
$0 |
$0 |
$19,679,842 |
$19,679,842 |
* This amount is due to a credit for the state share reserve for the federal program eligibility balance.