NY State Senate Bill 2017-S1151

Senate Bill S1151

2017-2018 Legislative Session

Relates to a cost of living adjustment for designated human services for the purpose of establishing rates of payments

download bill text pdf

Archive: Last Bill Status - In Senate Committee Social Services Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to social services
Mar 02, 2017	reported and committed to finance
Feb 08, 2017	print number 1151a
Feb 08, 2017	amend and recommit to social services
Jan 06, 2017	referred to social services

Votes

- Mar 2, 2017 - Social Services Committee Vote
  S1151
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Social Services Committee Vote: Mar 2, 2017
      
      aye (6)
      
      Alcantara
      
      Amedore
      
      Helming
      
      Persaud
      
      Squadron
      
      Tedisco
      
      aye wr (1)
      
      LaValle

Bill Amendments

Original

A (Active)

2017-S1151 - Details

Current Committee:: Senate Social Services
Law Section:: Social Services
Laws Affected:: Amd Part C §§1 & 4, Chap 57 of 2006
Versions Introduced in 2015-2016 Legislative Session:: S7612

2017-S1151 - Summary

Relates to a cost of living adjustment for designated human services for the purpose of establishing rates of payments; extends certain provisions; excludes food and energy.

2017-S1151 - Sponsor Memo

                                 BILL NUMBER:  S1151

 TITLE OF BILL :

An act to amend part C of chapter 57 of the laws of 2006, relating to
establishing a cost of living adjustment for designated human services
programs, in relation to extending COLA provisions for the purpose of
establishing rates of payments and the effectiveness thereof

 PURPOSE OR GENERAL IDEA OF BILL :

This bill extends the current Human Services COLA for an additional
three years and revises the COLA formula in order to make the annual
COLA more predictable

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 of the bill would limit the current Human Services COLA
ending on March 31, 2017.

Section 2 of the bill would extend the Human Services COLA until March
31, 2023. The COLA would be based on the Annual CPI - Urban, excluding
food and energy as published by the United States Department of Labor

Section 3 is the effective date.

 JUSTIFICATION :

In 2006 the state created a three year Human Services COLA to provide
fiscal relief to providers of state funded services in order to
address inflationary cost increases. The Human Services COLA was
extended for a second 3 year period in 2009. Unfortunately, due to the
serious fiscal difficulties the State faced beginning in 2009, the
Human Services COLA was deferred each year until 2016, when it was
extended until March 31, 2019. The COLA has been based upon the
CPI-Urban (CPI-U) as published by the United State Department of
Labor. CPI-U has ranged from 5.6% to minus 2.1% over the last eight
years. Fluctuations in the CPI over these years have largely been
driven by changes in food and energy prices. Indeed this year's CPI-U
level of .2% is largely the result of a 14.8% reduction in energy
costs. Many economists focus on core inflation which is defined as
CPI-U excluding food and energy. This year CPI-U, excluding food and
energy grew by 1.8%. Using CPI-U, excluding food and energy provides a
more stable and predictable Human Services COLA. Over the past 10
years CPI-U, excluding food and energy has increased by 1.9% on an
averaged annual basis.

 PRIOR LEGISLATIVE HISTORY :

S. 7612/A.10518; Reported and Committed to Finance

 FISCAL IMPLICATIONS :

The current fiscal plan includes an estimated 2.5% Human Services COLA
in FY18. This bill has the potential to provide a savings to the
fiscal plan over the near term

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S1151 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1151
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Social Services
 
 AN ACT to amend part C of chapter 57 of the laws of  2006,  relating  to
   establishing a cost of living adjustment for designated human services
   programs,  in relation to extending COLA provisions for the purpose of
   establishing rates of payments and the effectiveness thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3-c of section 1 of part C of chapter 57 of the
 laws  of  2006  relating to establishing a cost of living adjustment for
 designated human services programs, as amended by section 1 of part I of
 chapter 60 of the laws of 2014, is amended to read as follows:
   3-c. Notwithstanding any  inconsistent  provision  of  law,  beginning
 April  1, 2016 and ending March 31, [2019] 2017, the commissioners shall
 develop the COLA under this section using the actual U.S. consumer price
 index for all urban consumers (CPI-U) published  by  the  United  States
 department  of  labor,  bureau  of labor statistics for the twelve month
 period ending in July of the budget year  prior  to  such  state  fiscal
 year,  for  the  purpose of establishing rates of payments, contracts or
 any other form of reimbursement.
   § 2. Section 1 of part C of chapter 57 of the laws of  2006,  relating
 to  establishing  a  cost  of  living  adjustment  for  designated human
 services programs, is amended by adding a new subdivision 3-e to read as
 follows:
   3-E. NOTWITHSTANDING ANY  INCONSISTENT  PROVISION  OF  LAW,  BEGINNING
 APRIL 1, 2017 AND ENDING MARCH 31, 2023, THE COMMISSIONERS SHALL DEVELOP
 THE  COLA  UNDER THIS SECTION USING THE ACTUAL U.S. CONSUMER PRICE INDEX
 FOR ALL URBAN CONSUMERS (CPI-U), EXCLUDING ENERGY AND FOOD, PUBLISHED BY
 THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF  LABOR  STATISTICS  FOR
 THE  TWELVE MONTH PERIOD ENDING IN JULY OF THE BUDGET YEAR PRIOR TO SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04626-02-7

 S. 1151                             2
 
 STATE FISCAL YEAR, FOR THE PURPOSE OF ESTABLISHING  RATES  OF  PAYMENTS,
 CONTRACTS OR ANY OTHER FORM OF REIMBURSEMENT.
   §  3.  Section 4 of part C of chapter 57 of the laws of 2006, relating
 to establishing  a  cost  of  living  adjustment  for  designated  human
 services  programs,  as  amended by section 1 of part I of chapter 60 of
 the laws of 2014, is amended to read as follows:
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have  been in full force and effect on and after April 1, 2006; provided
 section one of this act shall expire and be  deemed  repealed  April  1,
 [2019]  2023; provided, further, that sections two and three of this act
 shall expire and be deemed repealed December 31, 2009.
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017; provided,
 however, that the amendments to section 1 of part C of chapter 57 of the
 laws  of  2006, relating to establishing a cost of living adjustment for
 designated human services programs made by sections one and two of  this
 act  shall  not  affect  the  repeal of such section and shall be deemed
 repealed therewith.

2017-S1151A (ACTIVE) - Details

Current Committee:: Senate Social Services
Law Section:: Social Services
Laws Affected:: Amd Part C §§1 & 4, Chap 57 of 2006
Versions Introduced in 2015-2016 Legislative Session:: S7612

2017-S1151A (ACTIVE) - Summary

Relates to a cost of living adjustment for designated human services for the purpose of establishing rates of payments; extends certain provisions; excludes food and energy.

2017-S1151A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1151A

 TITLE OF BILL :  An act to amend part C of chapter 57 of the laws of
2006, relating to establishing a cost of living adjustment for
designated human services programs, in relation to extending COLA
provisions for the purpose of establishing rates of payments and the
effectiveness thereof

 PURPOSE OR GENERAL IDEA OF BILL :

This bill extends the current Human Services COLA for an additional
three years and revises the COLA formula in order to make the annual
COLA more predictable

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 of the bill would limit the current Human Services COLA
ending on March 31, 2017.

Section 2 of the bill would extend the Human Services COLA until March
31, 2023. The COLA would be based on the Annual CPI - Urban, excluding
food and energy as published by the United States Department of Labor.
However for human services programs funded with federal funds the COLA
would use the actual U.S. consumer price index for medical care
services.

Section 3 is the effective date.

 JUSTIFICATION :

In 2006 the state created a three year Human Services COLA to provide
fiscal relief to providers of state funded services in order to
address inflationary cost increases. The Human Services COLA was
extended for a second 3 year period in 2009. Unfortunately, due to the
serious fiscal difficulties the State faced beginning in 2009, the
Human Services COLA was deferred each year until 2016, when it was
extended until March 31, 2019. The COLA has been based upon the
CPI-Urban (CPI-U) as published by the United State Department of
Labor. CPI-U has ranged from 5.6% to minus 2.1% over the last eight
years. Fluctuations in the CPI over these years have largely been
driven by changes in food and energy prices.  Indeed 2016's CPI-U
level of .2% is largely the result of a 14.8% reduction in energy
costs. Many economists focus on core inflation which is defined as
CPI-U excluding food and energy. This year CPI-U, exclud- ing food and
energy grew by 1.8%. Using CPI-U, excluding food and energy provides a
more stable and predictable Human Services COLA. Over the past 10
years CPI-U, excluding food and energy has increased by 1.9% on an
averaged annual basis. Further this bill would see that human services
programs funded with federal funds the COLA would use the actual U.S.
consumer price index for medical care services. This is an appropriate
metric to use as these programs are directly tied to the Medicaid
global cap, so making these changes in the COLA would ensure that
those providing Medicaid services receive an appropriate COLA based
solely on the Medicaid metric.

 PRIOR LEGISLATIVE HISTORY :

S. 7612/A.10518; Reported and Committed to Finance

 FISCAL IMPLICATIONS :

The current fiscal plan includes an estimated 2.5% Human Services COLA
in FY18. This bill has the potential to provide a savings to the
fiscal plan over the near term

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S1151A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1151--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Social Services -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted to said committee
 
 AN  ACT  to  amend part C of chapter 57 of the laws of 2006, relating to
   establishing a cost of living adjustment for designated human services
   programs, in relation to extending COLA provisions for the purpose  of
   establishing rates of payments and the effectiveness thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3-c of section 1 of part C of chapter 57 of the
 laws of 2006, relating to establishing a cost of living  adjustment  for
 designated human services programs, as amended by section 1 of part I of
 chapter 60 of the laws of 2014, is amended to read as follows:
   3-c.  Notwithstanding  any  inconsistent  provision  of law, beginning
 April 1, 2016 and ending March 31, [2019] 2017, the commissioners  shall
 develop the COLA under this section using the actual U.S. consumer price
 index  for  all  urban  consumers (CPI-U) published by the United States
 department of labor, bureau of labor statistics  for  the  twelve  month
 period  ending  in  July  of  the budget year prior to such state fiscal
 year, for the purpose of establishing rates of  payments,  contracts  or
 any other form of reimbursement.
   §  2.  Section 1 of part C of chapter 57 of the laws of 2006, relating
 to establishing  a  cost  of  living  adjustment  for  designated  human
 services programs, is amended by adding a new subdivision 3-e to read as
 follows:
   3-E.  NOTWITHSTANDING  ANY  INCONSISTENT  PROVISION  OF LAW, BEGINNING
 APRIL 1, 2017 AND ENDING MARCH 31, 2023, FOR HUMAN SERVICES PROGRAMS NOT
 FUNDED WITH FEDERAL MEDICAID FUNDS, THE COMMISSIONERS SHALL DEVELOP  THE
 COLA  UNDER  THIS SECTION USING THE ACTUAL U.S. CONSUMER PRICE INDEX FOR
 ALL URBAN CONSUMERS (CPI-U), EXCLUDING ENERGY AND FOOD, PUBLISHED BY THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04626-03-7

 S. 1151--A                          2
 
 UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR  STATISTICS  FOR  THE
 TWELVE  MONTH  PERIOD  ENDING  IN  JULY OF THE BUDGET YEAR PRIOR TO SUCH
 STATE FISCAL YEAR, FOR THE PURPOSE OF ESTABLISHING  RATES  OF  PAYMENTS,
 CONTRACTS  OR  ANY  OTHER  FORM  OF REIMBURSEMENT AND FOR HUMAN SERVICES
 PROGRAMS FUNDED WITH FEDERAL MEDICAID  FUNDS,  THE  COMMISSIONERS  SHALL
 DEVELOP THE COLA UNDER THIS SECTION USING THE ACTUAL U.S. CONSUMER PRICE
 INDEX  FOR MEDICAL CARE SERVICES, PUBLISHED BY THE UNITED STATES DEPART-
 MENT OF LABOR, BUREAU OF LABOR STATISTICS FOR THE  TWELVE  MONTH  PERIOD
 ENDING  IN  JULY OF THE BUDGET YEAR PRIOR TO SUCH STATE FISCAL YEAR, FOR
 THE PURPOSE OF ESTABLISHING RATES OF PAYMENTS, CONTRACTS  OR  ANY  OTHER
 FORM OF REIMBURSEMENT.
   §  3.  Section 4 of part C of chapter 57 of the laws of 2006, relating
 to establishing  a  cost  of  living  adjustment  for  designated  human
 services  programs,  as  amended by section 1 of part I of chapter 60 of
 the laws of 2014, is amended to read as follows:
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have  been in full force and effect on and after April 1, 2006; provided
 section one of this act shall expire and be  deemed  repealed  April  1,
 [2019]  2023; provided, further, that sections two and three of this act
 shall expire and be deemed repealed December 31, 2009.
   § 4. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017; provided,
 however, that the amendments to section 1 of part C of chapter 57 of the
 laws  of  2006, relating to establishing a cost of living adjustment for
 designated human services programs made by sections one and two of  this
 act  shall  not  affect  the  repeal of such section and shall be deemed
 repealed therewith.

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