Bill Text: NJ A3166 | 2024-2025 | Regular Session | Introduced
Bill Title: Makes supplemental appropriation of $8 million to DHS to increase reimbursement for funeral, burial, and crematory services provided to certain beneficiaries of Work First New Jersey and Supplemental Security Income programs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Aging and Human Services Committee [A3166 Detail]
Download: New_Jersey-2024-A3166-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman CLEOPATRA G. TUCKER
District 28 (Essex and Union)
SYNOPSIS
Makes supplemental appropriation of $8 million to DHS to increase reimbursement for funeral, burial, and crematory services provided to certain beneficiaries of Work First New Jersey and Supplemental Security Income programs.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
A Supplement to the annual appropriations act for the fiscal year ending June 30, 2022, P.L.2021, c.133.
Be It Enacted by the Senate and the General Assembly of the State of New Jersey:
1. In addition to the amounts appropriated under P.L.2021, c.133, the annual appropriations act for the fiscal year ending June 30, 2022, there is appropriated from the General Fund the following amount for the purpose specified:
54 DEPARTMENT OF HUMAN SERVICES
50 Economic Planning, Development, and Security
53 Economic Assistance and Security
7550 Division of Family Development
STATE AID
15-7550 Income Maintenance Management ..............$8,000,000
Total State Aid Appropriation,
Division of Family Development ...............$8,000,000
State Aid:
15 Work First New Jersey and Supplemental
Security Income Burial Benefits
Supplement ...........................($8,000,000)
Notwithstanding the maximum allowance for funeral, burial, and crematory services set forth in N.J.A.C.10:90-8.5 or any other law, rule, or regulation to the contrary, the amount appropriated for Work First New Jersey and Supplemental Security Income Burial Benefits Supplement shall be allocated to county and municipal agencies for the purposes of increasing the reimbursement level paid for funeral, burial, and crematory services provided to eligible persons pursuant to N.J.A.C.10:90-8.2 by $1,000 for each eligible person. Such appropriated funds shall not supplant other amounts allocated for the reimbursement of funeral, burial, and crematory services provided to eligible persons pursuant to N.J.A.C.10:90-8.2 that are included in appropriations under P.L.2021, c.133.
2. This act shall take effect immediately.
STATEMENT
This bill makes a FY 2022 supplemental appropriation of $8 million to the Division of Family Development in the Department of Human Services to increase reimbursements issued to funeral homes and cemeteries for funeral, burial, and crematory services provided to eligible persons in the Work First New Jersey and Supplemental Security Income programs, as outlined under N.J.A.C.10:90-8.2, by $1,000 for each eligible person.
Currently, pursuant to section 3 of P.L.1985, c.282 (C.44:1-157.1.), the total allowable payment for funeral, burial, and crematory services, including contributions by others, is to be at least 75 percent of the average cost for a proper funeral and burial charged by funeral directors in the locality in which the public assistance recipient is buried or cremated. Under N.J.A.C.10:90-8.5, however, the maximum allowance for adult funeral and cemetery services is $2,770. In addition, family and friends can contribute up to $1,570 without affecting the benefit amount. Therefore, current regulation establishes the total allowable payment for funeral, burial, and crematory services, including contributions by others, at $4,340.
Based upon data provided by the New Jersey State Funeral Directors Association, $4,340 is only approximately 28 percent of the average cost of funeral and cemetery charges in 2021, or $15,268. As such, the current funding policy leaves a funding gap of over $7,000 per funeral and burial provided under the WFNJ and SSI programs, according to the statutory provision that the allowable payment for services is to be at least 75 percent of the average cost for a proper funeral and burial, which in 2021 would be $11,452. This supplemental appropriation of $8 million, therefore, begins to close this gap and increase the financial support provided to the industry to provide these services.
This bill provides that the supplemental funds will be used to increase the reimbursement level paid for funeral, burial, and crematory services by $1,000 for each eligible person, rather than by a method determined by the Director of the Division of Family Development, in which the funds are allocated in such a manner that all eligible reimbursements are increased equally in proportion to the total cost of the service provided.
The bill provides that the appropriated funds are not to be used to supplant other amounts allocated for the reimbursement of funeral, burial, and crematory services that are included in the Fiscal Year (FY) 2022 Appropriations Act. According to FY 2022 Budget documents, the department anticipates the division will expend $15.8 million for such expenses in that fiscal year. This supplement, therefore, will increase total expenditures for such services to $23.8 million in FY 2022.
