Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Lujan
LAST UPDATED
ORIGINAL DATE 02/18/25
SHORT TITLE
Mi Via Waiver PGM. Provider Gross
Receipts
BILL
NUMBER House Bill 357
ANALYST Graeser
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
GRT $13,100.0 $13,600.0 $14,000.0 $14,500.0 Recurring General Fund
GRT $12,600.0 $13,000. 0 $13,500.0 $14,000.0 Recurring Local Funds
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
System
Changes
$0.0 $15.6 $0.0 $15.6 Nonrecurring General Fund
System
Changes
$0.0 $46.9 $0.0 $46.9 Nonrecurring Federal Funds
DDSD Program
Budget
$0.0 $7,267.8 $7, 524.8 $14,792.6 Recurring General Fund
DDSD Program
Budget
$0.0 $18,386.2 $19, 027.1 $37,460.2 Recurring Federal Funds
Total $25,716.5 $26,551.9 $52,268.4 Recurring
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Healthcare Authority (HCA) Agency Analysis was Solicited but Not Received From
Taxation & Revenue Department (TRD)
SUMMARY House Bill 357 – Page 2
Synopsis of House Bill 357
House Bill 357 (HB357) requires the Health Care Authority (HCA) to publish rules to exclude
the gross receipts taxes from the Mi Via Waiver recipient’s individual budgetary allotment and
requires the providers to bill the GRT for their services as a separate line item.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns, or June 20, 2025, if enacted. Because the provisions of this bill affect Gross
receipts tax, a July 1, 2025, or January 1, 2026, effective date should be specified.
FISCAL IMPLICATIONS
HCA reports on the fiscal implications of the provisions of this bill.
Based on the FY 2026 budget request for the Mi Via program, to exclude the gross
receipts tax from individual budgets in the Mi Via Waiver will add $25.6 thousand in
FY 2026 with a federal financial participation (FFP) of $18.4 thousand and
general fund (GF) need of $7,267.8. With an assumption of 3.5 percent growth from
FY 2026 to FY 2027, the additional cost for FY 2027 is $26.6 thousand with an FFP
of $19 thousand and GF need of $7,524.8. This program budget is maintained
through the HCA Developmental Disabilities Supports Division (DDSD).
This bill does not include any appropriations to DDSD or MAD for the program
budget increase or potential system changes that will be needed to implement the
requirements of this bill.
HB 357 Fiscal Impact on FY 2026 Mi Via Budget Request
(in thousands)
Description FY 2026 FY 2027 Total
Mi Via Budget Request 359,299.3 371,8 74.8 731,174.1
Weighted Average GRT 7.14% 7.14%
Fiscal Impact 25,654.0 26,55 1.9 52,205.8
Blended FMAP 71.67% 71.66%
Federal Financial Participation 18,386.2 19,02 7.1 37,413.3
State Fund Need 7, 267.8 7,524.8 14,792.6
The basic requirement of this bill is that providers will add the GRT to their bills, asking for
reimbursement from HCA. The total reimbursement, including the GRT, will be paid by HCA.
However, the increased amount to be rendered by HCA will be split 71.6 percent from federal
medical assistance percentage and 28.4 percent from the general fund. full amount of the bill,
less the GRT reimbursement, will be reported by the providers to TRD. TRD will calculate the
portion of the reported GRT to be paid to local governments and the portion to be paid to the
general fund (shown in the revenue table).
HCA reports small amounts for system modifications to implement the provisions of this bill at a
cost of $62.5 thousand.
SIGNIFICANT ISSUES House Bill 357 – Page 3
The Mi Via Waiver Program is a New Mexico Medicaid program that helps people with
intellectual and developmental disabilities (IDD) manage their own services. The program is
designed to give participants more control over their supports and services within a set budget
allotment.
A recent LFC program evaluation unit report, Developmental Disabilities and Mi Via Waivers,
noted that the state is serving significantly more individuals through the Mi Via waiver program
than in prior years and that, as a result, the state is facing a significant shortage of service
providers. The report also noted that the average Mi Via waiver client exceeded their individual
budgetary allotment by roughly $1,300 in FY24, leading to an additional $42 million in spending
program-wide.
PERFORMANCE IMPLICATIONS
The LFC tax policy of accountability is not met because this is not a tax expenditure program.
The additional GRT remitted pursuant to the provisions of this bill will not be separately
reported. TRD will not be able to extract information from tax returns on the effectiveness of the
provisions of this bill in generating net additional revenue for the state and local governments.
HCA will be able to extract this information but is not required in the bill to report annually to an
interim legislative committee regarding the data compiled from the reports from taxpayers.
LG/hj