LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 4414

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JUNE 25, 2026

 

 

SUMMARY

 

Synopsis:

Requires DCF to strengthen Statewide pediatric psychiatry and behavioral health care services for children and families.

Type of Impact:

Annual State expenditure increase.

Agencies Affected:

Department of Children and Families, Department of Banking and Insurance, Department of Health, and Department of Human Services.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1

Year 2 and Beyond

 

State Expenditure Increase

At least $380,000

At least $235,000

 

 

·         The Office of Legislative Services (OLS) concludes that the Department of Children and Families will incur an indeterminate annual cost increase as a result of overseeing and implementing the policies and procedures required under the bill. 

·         At a minimum, the OLS estimates that the department’s one-time expenditures will increase by approximately $145,000, while annual costs will increase by approximately $235,000 for salaries and benefits associated with the staffing needs of implementing the bill’s provisions.  Additional annual costs may include materials and supplies. 

·         The OLS notes that the department may incur additional expenses under the bill associated with supporting the expansion of the services provided by the New Jersey Pediatric Psychiatry Collaborative; however, it is assumed that any costs will be minimal as the collaborative largely fulfills the requirements of the bill under its current service offerings.

·         To the extent that these efforts include collaboration with the Department of Banking and Insurance, the Department of Health, and the Department of Human Services, those departments may also experience increases in expenditures under the bill. 

BILL DESCRIPTION

 

      This bill requires that the Department of Children and Families be responsible for overseeing and implementing policies and procedures to strengthen Statewide pediatric psychiatry and behavioral health care services for children and their families. 

      Specifically, in implementing the policies and procedures prescribed in the bill, the department is to: (1) expand the services provided by the New Jersey Pediatric Psychiatry Collaborative to better support pediatricians who are members of the collaborative regarding the delivery of behavioral health services; (2) analyze and recommend, in consultation with the Department of Banking and Insurance, the Department of Health, and the Department of Human Services, adjustments to payment structures and reimbursement rates for pediatric primary care physicians providing pediatric psychiatry and behavioral care health services; (3) increase transparency and accountability within PerformCare or other future contracted system administrators for the Department of Children and Families’ Division of Children’s System of Care; (4) establish a public awareness campaign to inform and educate the public about the services provided by the division’s Children’s System of Care and how to access such services through PerformCare; (5) require, in consultation with the Department of Health and the Department of Human Services, health care facilities, pediatric primary care physicians, and hospital emergency departments, and pediatric behavioral health care programs to report to the department, standardized data on hospitalization visits and admissions, discharge, and placement information concerning children seeking pediatric psychiatry or behavioral health care services; and (6) collect, compile, and analyze the standardized data reported by providers under the bill to guide service delivery planning, identify service gaps, prioritize capacity development, and support policy and funding decisions.

      The Department of Children and Families is to submit to the Governor and the Legislature a report on the materials prepared for the public awareness campaign and the standardized data collected pursuant to the provisions of the bill and to make the materials and the data available to the public on the department’s Internet website.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the Department of Children and Families will incur an indeterminate annual cost increase as a result of overseeing and implementing the policies and procedures required under the bill.  At a minimum, the OLS estimates that the department’s one-time expenditures will increase by approximately $145,000, while annual costs will increase by approximately $235,000 for salaries and benefits associated with the staffing needs of implementing the bill’s provisions.  Additional annual costs may include materials and supplies.  To the extent that these efforts include collaboration with the Department of Banking and Insurance, the Department of Health, and the Department of Human Services, those departments may also experience increases in expenditures under the bill. 

      The one-time salary and benefits cost increases estimated under this analysis assume two new temporary six month positions, each reflecting a $72,500 increase in Department of Children and Families expenditures: one full-time equivalent employee in a program specialist position who will lead the provisions of the bill regarding adjustments to payment structures and reimbursement rates for pediatric primary care physicians; and one full-time equivalent employee in a program specialist position who will implement the public awareness campaign required under the bill.  

      The annual salary and benefit cost increases estimated under this analysis assume two new permanent positions in the department: one 0.5 full-time equivalent employee in a contract administrator position, costing approximately $89,000 per year, who will implement the required changes to, and oversight of, the contract with PerformCare or other future contracted system administrators for the  Division of Children’s System of Care; and one full-time equivalent employee in a program specialist position, costing approximately $146,000 per year, who will collect, compile, and analyze the standardized data required to be submitted by various provider types under the bill.

      The OLS notes that the department may incur additional expenses under the bill associated with supporting the expansion of the services provided by the New Jersey Pediatric Psychiatry Collaborative; however, it is assumed that any costs will be minimal as the collaborative largely fulfills the requirements of the bill under its current service offerings.  For reference, the New Jersey Pediatric Psychiatry Collaborative is a Statewide, Department of Children and Families grant-funded program available for children, adolescents, and young adults up to the age of 21 who are under the care of their pediatric primary care provider. This program is available free of cost and allows participating pediatric primary care providers to consult with New Jersey Pediatric Psychiatry Collaborative mental health professionals. 

      Specifically, the bill requires the New Jersey Pediatric Psychiatry Collaborative to: increase access to telepsychiatry services; develop structured consultation, follow-up support, clinical guidance, and intake and referral services; and provide medical education via case-based learning collaboratives, in partnership with the New Jersey Chapter of the American Academy of Pediatrics.  Currently, the collaborative administers a telehealth project under which its members have access to telepsychiatry services facilitated by a regional hub, as well as to telehealth equipment, in order to allow patients and families to access consultations from a New Jersey Pediatric Psychiatry Collaborative child psychiatrist at a primary care provider’s office.  Additionally, participation in the collaborative includes such benefits as: timely access to psychiatry consultation for the patient, consultative support to assist the primary care provider with diagnostic clarification, medication management, and care coordination; and referrals for patients and families to appropriate community mental health treatment services.  Finally, the collaborative offers a variety of continued education opportunities, such as monthly learning opportunities featuring didactic and case-based presentations.  Some of these offerings are in partnership with the New Jersey Chapter of the American Academy of Pediatrics.  

 

Section:

Human Services

Analyst:

Sarah Schmidt

Principal Research 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.).