The Governor’s Budget Bill introduced on February 12, 2007 includes long awaited language concerning implementation of the Deficit Reduction Act of 2005.  For the most part, the Budget Bill tracks the DRA language, including the Federal effective dates (February 8, 2006) for the new transfer of asset rules.  Thus, for all asset transfers on or after February 8, 2006, the 60 month lookback will apply as well as the new start date provisions.  We anticipate that there will be additional administrative changes once these provisions (or other implementation provisions) are adopted by the Legislature.

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