LRB-3763/1
DAK&RAC:kjf:rs
2005 - 2006 LEGISLATURE
October 20, 2005 - Introduced by Representatives Sherman, Cullen, Kreuser,
Pope-Roberts, Zepnick, Black, Sinicki, Nelson, Van Akkeren, Young,
Turner, Boyle, Sheridan, Seidel, Berceau, Grigsby, Hebl, Pocan, Travis,
Molepske, Kessler, Benedict, Staskunas, Steinbrink, Richards, Hubler,
Shilling, Schneider, Lehman, Parisi, Vruwink, Fields, Gronemus, Toles,
Colon
and Wasserman, cosponsored by Senators Jauch, Hansen, Robson,
Taylor, Miller, Lassa, Erpenbach, Wirch, A. Lasee, Decker
and Breske.
Referred to Joint Committee on Finance.
AB771,1,4 1An Act to amend 20.003 (4) (fm) and 20.003 (4) (fr) of the statutes; relating to:
2required general fund statutory balance, required general fund structural
3balance, increasing nursing home Medical Assistance reimbursement, and
4making appropriations.
Analysis by the Legislative Reference Bureau
Under current law, nursing homes that provide services to recipients of Medical
Assistance (MA) receive reimbursement, under a formula, from state general
purpose revenues, certain program revenues, the MA trust fund, and federal
Medicaid moneys. This bill increases the state general purpose revenue
appropriation by $5,141,700 for fiscal year 2005-06 and by $10,118,000 for fiscal
year 2006-07 to provide a 1.4 percent increase in each fiscal year to the nursing home
MA reimbursement rate. Under the bill, nursing homes that receive the additional
reimbursement must expend at least 50 percent of the amount received for increased
payment for direct care wages, fringe benefits, or hours for nursing home staff.
Current statutes contain a rule of proceeding governing legislative action on
certain bills. Generally, the rule provides that no bill directly or indirectly affecting
general purpose revenues may be adopted if the bill would cause the estimated
general fund balance on June 30 of any fiscal year to be less than a certain amount
of the total general purpose revenue appropriations for that fiscal year. For fiscal
years 2005-06 and 2006-07, the amount is $65,000,000. This bill reduces the
amount for the 2005-06 fiscal year to $60,000,000 and the amount for the 2006-07
fiscal year to $50,000,000.

Current statutes also contain a rule of proceeding that generally prohibits the
legislature from passing bills that would cause general fund expenditures in a given
fiscal year to exceed moneys deposited in the general fund in that year. This bill
provides that this rule does not apply to the actions of the legislature in enacting this
act for the 2006-07 fiscal year.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB771, s. 1 1Section 1. 20.003 (4) (fm) of the statutes, as affected by 2005 Wisconsin Act
225
, is amended to read:
AB771,2,33 20.003 (4) (fm) For fiscal year 2005-06, $65,000,000 $60,000,000.
AB771, s. 2 4Section 2. 20.003 (4) (fr) of the statutes, as created by 2005 Wisconsin Act 25,
5is amended to read:
AB771,2,66 20.003 (4) (fr) For fiscal year 2006-07, $65,000,000 $50,000,000.
AB771, s. 3 7Section 3. Nonstatutory provisions.
AB771,2,108 (1) Required general fund structural balance. Section 20.003 (4m) of the
9statutes shall not apply to the actions of the legislature in enacting this act for the
102006-07 fiscal year.
AB771,2,1511 (2) Facility reimbursement supplement; required expenditure. Each facility
12that receives increased reimbursement from the amounts appropriated under
13Section 4 (1) of 2005 Wisconsin Act .... (this act) shall expend, from the amount
14received, at least 50 percent for increased payment for direct care wages, fringe
15benefits, or hours for facility staff.
AB771, s. 4 16Section 4 . Appropriation changes.
AB771,3,517 (1) Nursing home Medical Assistance reimbursement rate. In the schedule
18under section 20.005 (3) of the statutes for the appropriation to the department of

1health and family services under section 20.435 (4) (b) of the statutes, as affected by
2the acts of 2005, the dollar amount is increased by $5,141,700 for fiscal year 2005-06
3and the dollar amount is increased by $10,118,000 for fiscal year 2006-07 to increase
4funding for Medical Assistance reimbursement to facilities under section 49.45 (6m)
5of the statutes.
AB771,3,66 (End)
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