Question-and-Answer Session
Operator
(Operator's instruction) Your first question comes from the line of Charles Strauzer - CJS Securities.
Charles Strauzer - CJS Securities
A couple of quick questions for you, Rich. When you look at the SCHIP reauthorization and you talked about the jump in the eligibility to 300%, if you look at California, what is the current eligibility cap there?
David N. Walker
Bruce Caswell is with us today. Bruce, why don’t you just take that up?
Bruce Caswell
Yes, in California, the current federal poverty level eligibility limit is 250% so that would be a 50% increase for them.
Charles Strauzer - CJS Securities
Got it. So that would potentially increase your enrolment work there. And remind us again that kind of a contract you are paid on volume of enrollees is that correct?
Bruce Caswell
I think as a generality, the amount of work that we do is tied linearly to the number of enrollees and the exact paid point will vary from contract to contract but I think that contract is per member per month but that is clearly a reflection of the number of enrollees.
Charles Strauzer - CJS Securities
Well, if you look at the overall revenue for MAXIMUS, roughly what percentage is tied to or correlated to enrolment growth, one way or the other?
Bruce Caswell
I think the way that I would look at that, Charlie, is to say what is our book of businesses as it relates to enrolment program, what is our book of businesses as it relates to SCHIP, and in order of magnitude I think, our SCHIP revenue run rate is about $113 million a year and I think with about a couple of hundred million a year enrolment program. I mean, those are the two largest service lines that we have.
Charles Strauzer - CJS Securities
Excellent, fair enough. And then the New York City contract for the special ed, how much of that is going to require new training and new expertise to bring on board in terms of new cost versus taking from your core competencies and being able to translate that to this new opportunity?
Bruce Caswell
I think the majority is by far the latter component. This is not custom build. This is implementing our existing Tienet software which has an installed base across the country. It is the same software that we have implemented in the Chicago public school systems and naturally, we will have to interface it with the systems in New York City and we will have to train the users in New York City on how to use it but it should not be viewed as a custom-build situation.
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