Senate Bill 2654

AN ACT TO DIRECT ALL STATE AGENCIES, DEPARTMENTS AND INSTITUTIONS SUBMITTING BUDGET REQUESTS FOR FISCAL YEARS 2007, 2008 AND 2009 TO DEVELOP THOSE BUDGET REQUESTS ACCORDING TO ZERO-BASED BUDGETING PRINCIPLES; TO DIRECT THE JOINT LEGISLATIVE BUDGET COMMITTEE AND THE GOVERNOR'S OFFICE TO DEVELOP BUDGET RECOMMENDATIONS ACCORDING TO THE 2006 FISCAL YEAR ZERO-BASED BUDGET; TO REQUIRE THAT EACH APPROPRIATION BILL ENACTED BY THE LEGISLATURE IN FISCAL YEARS 2007, 2008 AND 2009 TO BE NO MORE THAN THE FISCAL YEAR 2006 ZERO BASE; TO CREATE A SPECIAL FUND IN THE STATE TREASURY FOR THE DEPOSIT OF FEDERAL FUNDS ALLOCATED TO MISSISSIPPI UNDER THE DEFICIT REDUCTION ACT OF 2005 (S. 1932) FOR THE PURPOSE OF REPLACING THE STATE'S SHARE UNDER THE MEDICAID PROGRAM DUE TO THE HURRICANE KATRINA DISASTER; TO PROVIDE THAT THESE FUNDS SHALL BE APPROPRIATED BY THE LEGISLATURE FOR THE PURPOSE OF PROVIDING THE STATE MATCH REQUIREMENTS FOR KATRINA DISASTER RELIEF PROGRAMS PROVIDED BY FEMA UNDER THE STAFFORD ACT; TO REQUIRE ANY LAPSE IN GENERAL OR SPECIAL FUNDS IN FISCAL YEARS 2007, 2008 AND 2009 TO BE TRANSFERRED FOR THE SAME DISASTER RELIEF PROGRAM; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. For fiscal years 2007, 2008 and 2009, each state agency, department or institution that is required to submit a recurring budget request shall develop the request according to zero-based budgeting principles. Those principles shall require the agency, department or institution to do the following for each budgetary unit:

(a) Identify the component programs of the budgetary unit, describe the activities conducted by each program, and specify the legal basis for each program to conduct each activity described;

(b) Itemize in detail by object of expenditure the budgetary requirements for conducting the activities of each program of the budgetary unit with the actual expenditures for the prior fiscal year, the estimated expenditures for the current fiscal year, and the projected expenditures for the next budget fiscal year, by starting with a base of zero dollars and adding dollar amounts for activities conducted in the prior fiscal year that are deemed appropriate in the current fiscal year and requested for the budget fiscal year; and

(c) Develop a narrative for each program of the budgetary unit justifying each line item of the itemized budgetary requirements for conducting the activities of the program with the actual expenditures for the prior fiscal year, and justifying each line item of the itemized changes in the budgetary requirements for conducting the activities of the program between the actual expenditures for the prior fiscal year and the estimated expenditures for the current fiscal year, and between the estimated expenditures for the 2006 fiscal year and the projected expenditures for the next budget fiscal year.

SECTION 2. The Joint Legislative Budget Committee and the Governor's Office shall review and evaluate only those budget requests that are developed as prescribed in Section 1 of this act, and shall develop budget recommendations to the Legislature in fiscal years 2007, 2008 and 2009 based upon the 2006 fiscal year base of zero dollars for each program in each budgetary unit and adding no dollars, and reducing dollars as necessary for estimated changes in expenditures approved for the current fiscal year, and reducing dollars as necessary for recommended changes in the expenditures deemed appropriate for the budget fiscal year.

SECTION 3. The Legislature shall determine the amount of each appropriation for each state agency, department or institution for fiscal years 2007, 2008 and 2009 based upon the 2006 fiscal year base for each program in each budgetary unit and adding zero dollars, and reducing dollars as necessary for estimated changes in expenditures approved for the current fiscal year, and reducing dollars as necessary for changes in expenditures deemed appropriate for the next budget fiscal year. Any funds needed to provide state matching requirements for the State of Mississippi for services provided by FEMA to fund Stafford Act activities directly related to the Hurricane Katrina Disaster in Mississippi, as required by federal law, shall be excused from the zero-based growth requirement of this section.

SECTION 4. (1) There is hereby created in the State Treasury a special fund to be designated the Hurricane Katrina Federal Medicaid State Share Replacement Fund. The State Treasurer shall deposit the following funds into said fund: All federal funds allocated to the State of Mississippi for the fiscal relief of the state's Medicaid program under The Deficit Reduction Act of 2005 (S. 1932) for the following allowable expenses:

(a) For the state share of Medicaid services from August 24, 2005, through June 30, 2006, for evacuees from other states and for individuals that resided in one (1) of the lower forty-seven (47) counties of Mississippi receiving benefits under an approved multistate 1115 demonstration project (Katrina Waiver);

(b) For the total uncompensated care costs incurred for medically necessary services from August 24, 2005, through January 31, 2006, for evacuees from other states and for individuals that resided in one (1) of the lower forty-seven (47) counties of Mississippi who do not have other coverage for such assistance through insurance, including, but not limited to, private insurance, Medicaid or SCHIP, or state-funded health insurance programs;

(c) For the state share until June 30, 2006, of services for individuals that reside in one (1) of the lower forty-seven (47) counties of Mississippi who are eligible for benefits under the regular Medicaid or SCHIP program; and

(d) For costs associated with restoring access to health care in the impacted Hurricane Katrina disaster counties as per the approval of the Secretary of the United States Department of Health and Human Services.

(2) The Executive Director of the Mississippi Department of Finance and Administration, pursuant to specific appropriation therefor by the Legislature, is hereby directed to transfer any funds in the Hurricane Katrina Federal Medicaid State Share Replacement Fund to the Mississippi Emergency Management Agency (MEMA) or other appropriate fund for the purpose of providing state matching requirements for the State of Mississippi in fiscal years 2007, 2008 and 2009 for services provided by FEMA to fund Stafford Act activities directly related to the Hurricane Katrina disaster in Mississippi as required by federal law. These activities include, but are not limited to, debris removal, rebuilding highways, rebuilding schools and rebuilding other public buildings.

(3) Any funds remaining in the Hurricane Katrina Federal Medicaid State Share Replacement Fund at the end of any fiscal year shall not lapse into the State General Fund but shall remain in said special fund. Any interest earned on the Hurricane Katrina Federal Medicaid State Share Replacement Fund shall be applied to and shall remain in said special fund.

(4) In addition to the federal funds specified in subsection (1), any fund balance in any State General or Special Fund existing at the close of the 2007, 2008 or 2009 fiscal years shall not lapse into the State General Fund, but shall be transferred by the Executive Director of the Department of Finance and Administration to MEMA or other appropriate fund for the purpose of providing state matching requirements for the State of Mississippi for services provided by FEMA to fund Stafford Act activities directly related to the Hurricane Katrina disaster in Mississippi as required by federal law. These activities include, but are not limited to, debris removal, rebuilding highways, rebuilding schools and rebuilding other public buildings.

SECTION 4. This act shall take effect and be in force from and after its passage.