LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5510

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 19, 2025

 

 

SUMMARY

 

Synopsis:

Requires appointment of State Dementia Services Coordinator; appropriates $150,000.

 

Type of Impact:

Annual increase in State expenditures and revenues.

Agencies Affected:

Department of Human Services.

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Thereafter 

 

State Expenditure Increase

Up to $150,000

Indeterminate

 

State Revenue Increase

Indeterminate

Indeterminate

 

 

·       The Office of Legislative Services (OLS) determines that State expenditures will increase by up to $150,000 in the first year following the bill’s enactment for the State Dementia Services Coordinator to implement the activities required under the bill.  Annual expenditures in future years will depend upon the annual appropriations process as well as public demand for State programs for individuals with Alzheimer’s disease or dementia and, therefore, cannot be anticipated.

·       To the extent that the coordinator is able to better synchronize the delivery of, or eliminate the duplicative provision of, services for individuals with Alzheimer’s disease or dementia, State expenditures may potentially be reduced.

·       If implementation of the master plan and the provision of coordinated services permits the identification of additional services for which Medicaid-eligible individuals, diagnosed with Alzheimer’s disease or dementia, may qualify, State revenues would potentially increase by an indeterminate amount in the form of federal reimbursements for State Medicaid expenditures under the federal Medicaid program.

 

BILL DESCRIPTION

 

      The bill requires the Commissioner of Human Services to appoint a State Dementia Services Coordinator, who will: 1) develop and coordinate implementation of a master plan to address the impact of Alzheimer’s disease or other forms of dementia; 2) coordinate with existing State programs and services for persons with Alzheimer's disease or dementia; 3) facilitate collaboration with and prevent service duplication by State departments and community-based organizations; 4) identify service gaps; and 5) increase awareness of, and facilitate access to, quality, coordinated treatment and dementia care.  The bill appropriates $150,000 from the General Fund to the Department of Human Services to effectuate the purposes of the bill.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that State expenditures will increase by as much as $150,000 in the first year following the bill’s enactment to appoint a State Dementia Services Coordinator.  Although the bill does not state that the appropriation is intended to pay for the coordinator’s salary and benefits, annual costs under the bill may also include the salary and benefits for this position.  State expenditures for the coordinator in future fiscal years will largely depend on the annual appropriations process, as well as the extent of the ongoing need for coordination of care and services delivered by State entities and community-based organizations for individuals with Alzheimer’s or dementia.

      To the extent that the development and implementation of a State master plan identifies and reduces the provision of duplicative services by various State offices and community-based organizations, State expenditures may potentially be somewhat reduced.  The OLS notes there could potentially be an increase in public demand for treatment and services provided by State offices, which may result from the coordinator’s work to increase awareness of, and access to, such services. 

      If the implementation of the master plan and the provision of coordinated service delivery facilitate the identification of additional services for which Medicaid-eligible individuals with Alzheimer’s disease or dementia may qualify, State Medicaid expenditures would increase by an indeterminate amount.  State revenues would also increase by an indeterminate amount, in the form of federal reimbursements for State Medicaid expenditures under the federal Medicaid program.

      Currently, the Division of Aging Services in the Department of Human Services ensures the delivery of multiple services for individuals with Alzheimer’s or dementia and their caregivers, including the Alzheimer’s adult day services program and the Statewide Respite Care Program.  The county-based Area Agencies on Aging and Aging and Disability Resource Connection offer information, assistance and screening to assess the needs of elderly and disabled residents, and provide vital services including congregate meals, home delivery of meals, in-home visitation and transportation services for vulnerable individuals.  Moreover, low-income individuals with Alzheimer’s disease or dementia may be eligible to access Medicaid community-based services via the Managed Long Term Supports and Services program or Medicaid-covered nursing home services through the Division of Medical Assistance and Health Services.  The Department of Health, however, is responsible for licensing and inspecting the quality of care provided by the State’s assisted living facilities, nursing homes, and dementia care homes. 

 

 

Section:

Human Services

Analyst:

Anne Cappabianca

Senior Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).