An Act designating certain Pioneers' Home receipts as program receipts, appropriations of which are not made from the unrestricted general fund; and providing for an effective date.

Senate Bill 111 recognizes that Pioneers' Home receipts are collected from residents for rent and certain supplies used by the residents. This legislation changes the designation of these receipts from general fund to statutory designated program receipts.

In late 1995 the Pioneers' Homes Advisory Board recommended incremental increases in the rental rate schedule over seven years to recover the full cost of care by FY2003. The first rate increase went into effect July 1, 1996 and similar increases will occur annually until July 2002. Collections are based on the residents' ability to pay. Based on current projections, it is estimated that the fees will stabilize at approximately $13.0 million.

SB 111 recognizes the direct correlation of fees paid by the Pioneers' Home residents to the program expenses. I urge passage of this legislation.