LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 1950
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 14, 2025
SUMMARY
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Synopsis: |
Expands scope of Office of State Long-Term Care Ombudsman. |
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Type of Impact: |
Annual State expenditure increase, potential annual State revenue increase. |
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Agencies Affected: |
Office of the State Long-term Care Ombudsman. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Year 1 |
Year 2 & Thereafter |
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State Cost Increase |
Between $425,000 and $1 million |
At a minimum between $425,000 and $1 million |
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Potential State Revenue Increase |
Indeterminate |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes that the Office of the State Long-Term Care Ombudsman (LTCO) will incur an expenditure increase of between $425,000 and $1 million in the first year of the bill’s implementation. Annual State costs thereafter are estimated to be at least at these levels and increase over time as more complaints are filed with the office due to the bill’s provisions, thereby requiring the LTCO to hire more staff to investigate and resolve those complaints.
· To the extent that Disability Rights NJ may collaborate with the LTCO to monitor the care, and investigate allegations of abuse and neglect, of long-term care residents under the age of 60, costs incurred by the LTCO under the bill would be reduced by an indeterminate amount. Disability Rights NJ is the State's designated Protection and Advocacy agency and has the authority, pursuant to federal law, to monitor any setting where a person with a disability is receiving a service, including nursing homes and other long-term care settings.
· The OLS estimates that annual State revenue may increase under the bill by an indeterminate amount to the extent that penalties are collected, as permitted under current law, from long-term care staff and facilities for non-compliance with the new reporting mandate under the bill regarding a resident, under the age of 60, who is being or has been abused or exploited.
BILL DESCRIPTION
The bill expands the current statutory responsibilities of the LTCO to include long-term care residents under 60 years of age. The LTCO is responsible for securing, preserving, and promoting the health, safety, and welfare of New Jersey's long-term care residents, primarily through investigations of abuse and exploitation.
The bill also requires a staff member employed at a long-term care facility to report to the ombudsman that a resident, under the age of 60, is being or has been abused or exploited. Under current law, staff are only mandated to report abuse or exploitation if the resident is 60 years of age or older.
FISCAL ANALYSIS
EXECUTIVE BRANCH
While the Executive has not submitted a formal fiscal note for this bill, the Office of the Long- Term Care Ombudsman estimated that the provisions of an identical bill from the previous legislative session would increase the number of complaints it receives by 300 to 400 complaints per year.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the LTCO will incur an expenditure increase of between $425,000 and $1 million in the first year of the bill’s implementation as a result of hiring additional staff to respond to growth in the number of annual complaints made by or on behalf of long-term care residents. The low range of the estimate reflects the LTCO hiring four full-time equivalent employees at a base salary of $65,000 plus fringe benefits, and the high end of the estimate reflects the LTCO hiring six employees at a salary of $100,000 plus fringe benefits.
Annual State costs thereafter are estimated to be at least at these levels and increase over time as more complaints are filed with the office due to the bill’s provisions. Complaints will increase under the bill due to the provisions that: 1) expand the scope of the ombudsman’s office to include services to long-term care residents under the age of 60; and 2) mandate staff members employed at long-term care facilities to report to the ombudsman that a resident, under the age of 60, is being or has been abused or exploited.
The OLS notes that since 2016, the LTCO has gradually been expanding its services, as staffing and volunteer resources permit, to address complaints involving residents under the age of 60; however, there has been little promotion of this policy change to residents and their families. In federal fiscal year 2024, the LTCO opened 549 cases regarding residents under 60, which accounted for 10.1 percent of all cases opened that were associated with residents of a specific age. By way of comparison, in federal fiscal year 2020, the LTCO opened 83 cases regarding residents under 60, or 2 percent of all cases opened that were associated with residents of a specific age.
Under the bill, the LTCO is required to prepare and distribute to each long-term care facility written notices providing information about the LTCO and how to file a complaint. The facility is then to distribute these notices to each resident, regardless of age, or the resident’s guardian. It is assumed that once the LTCO’s expanded scope is more widely known, the number of complaints filed will increase. Moreover, mandating long-term care staff and facilities to report abuse and exploitation for residents under 60 years of age will drive a caseload increase as well, particularly since non-compliance holds a financial penalty for the staff member and the facility. However, current law permits the LTCO not to investigate a complaint when it determines that the resources available are insufficient for an adequate investigation.
Absent the bill, the FY 2026 Governor’s Budget proposes a $4.6 million appropriation to support 46 State positions in the LTCO. The LTCO also anticipates an additional $2.3 million in federal appropriations to support eight federal positions in FY 2026. In FY 2026, the Executive projects that the LTCO will receive 21,000 complaints and make 14,750 site visits.
The OLS notes that some responsibilities given to the LTCO under the bill are currently being carried out by Disability Rights NJ, the State's designated Protection and Advocacy agency. Protection and Advocacy agencies are federally mandated to protect the rights and well-being of individuals with disabilities. Under The Developmental Disabilities Assistance and Bill of Rights Act of 2000, Disability Rights NJ has the authority to monitor any setting where a person with a disability is receiving a service, including nursing homes and other long-term care settings, and investigate allegations of abuse and neglect. According to Disability Rights NJ’s 2024 Annual Report, funding for the organization is predominantly from federal resources. To the extent that Disability Rights NJ may collaborate with the LTCO to monitor the care, and investigate allegations of abuse and neglect, of long-term care residents under the age of 60, costs incurred by the LTCO under the bill would be reduced by an indeterminate amount.
Finally, the OLS estimates that annual State revenue may increase under the bill by an indeterminate amount to the extent that penalties are collected, as permitted under current law, from long-term care staff and facilities for non-compliance with the new reporting mandate regarding a resident, under the age of 60, who is being or has been abused or exploited. Generally, it is assumed that this expanded mandate could increase the possibility of non-compliance; however, the number and nature of such infractions is unpredictable.
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Section: |
Human Services |
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Analyst: |
Principal Research Analyst |
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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.).