LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 21, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2 by Otto (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Engrossed: a negative impact of ($280,128,031) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 21, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2 by Otto (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2 by Otto (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2 by Otto (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed
HB2 by Otto (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Engrossed: a negative impact of ($280,128,031) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Engrossed: a negative impact of ($280,128,031) through the biennium ending August 31, 2017.
Appropriations: Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofDept Ins Operating Acct36 Appropriation out ofFederal Funds555 2015 $284,828,031 $5,300,000 $213,064,844 2016 $0 $0 $0 2017 $0 $0 $0 General Revenue-Related Funds, Three-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2015 ($284,828,031) 2016 $0 2017 $0 General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2015 ($280,128,031) 2016 $0 2017 $0 2018 $0 2019 $0 All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Probable Savings/(Cost) fromDept Ins Operating Acct36 Probable Revenue Gain fromDept Ins Operating Acct36 2015 ($284,828,031) ($213,064,844) ($5,300,000) $5,300,000 2016 $0 $0 $0 $0 2017 $0 $0 $0 $0 2018 $0 $0 $0 $0 2019 $0 $0 $0 $0 Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2014 2015 $4,700,000 19.5 2016 $0 0.0 2017 $0 2018 $0 2019 $0 Fiscal Analysis * General Revenue-related Appropriation Reductions: Texas Public Finance Authority - Bond Debt Service Payments $ (21,000,000) Texas Education Agency - Foundation School Program, Account No. 193 $ (710,000,000) Water Development Board - Debt Service Savings $ (5,932,518) Texas Department of Transportation - Debt Service Savings relating to Proposition 12 Bonds $ (22,100,000) General Revenue-related Appropriation Increases: Facilities Commission - Emergency Maintenance at State Owned Buildings $ 9,538,658 Facilities Commission - Critical Operations and Health & Safety Maintenance (TSD) $ 10,952,024 State Preservation Board - Volunteer Firemen Monument $ 95,000 Family and Protective Services - Foster Care $ 17,729,316 Family and Protective Services - Title IV -E $ 800,000 Health and Human Services Commission - Medicaid $ 85,543,166 Health and Human Services Commission - Medicaid - Health Insurance Provider Fee and Federal Income Tax $ 79,685,024 Health and Human Services - CHIP Health Insurance Provider Fee and Federal Income Tax $ 4,516,607 Teacher Retirement System - TRS Care $ 768,100,754 Office of Court Administration - E-Filing System $ 6,400,000 Department of Criminal Justice - Correctional Managed Health Care (CMHC) $ 50,500,000 Parks and Wildlife Department - Contingency appropriation for the San Jacinto Lawsuit Settlement $ 10,000,000 * Net General Revenue-dedicated appropriations total an increase of $5,300,000 for fiscal year 2015 as follows: FY 2015 Department of Insurance Operating Acct No 036 - Healthy Texas Claims $ 5,300,000 * Net Federal Funds appropriations total an increase of $213,064,844 for fiscal year 2015 as follows: FY 2015 Federal Funds Appropriation Reductions: Health and Human Services - TANF Surplus in Cash Assistance Grants $ (35,083,683) Federal Funds Appropriation Increases: Family and Protective Services - Title IV -E $ 800,000 Health and Human Services Commission - Medicaid $ 118,373,797 Health and Human Services Commission - Medicaid - Health Insurance provider Fee and Federal Income Tax $ 113,570,204 Health and Human Services - CHIP Health Insurance Provider Fee and Federal Income Tax $ 15,404,526 * Appropriations Authority Changes Transfers within the Health and Human Services Commission (HHSC) to address the Medicaid shortfall: $101,900,000 in General Revenue from Integrated Eligibility and Enrollment for Medicaid $ 2,700,000 in General Revenue from the Office of the Inspector General $ 43,303 in General Revenue from TANF Cash Assistance Transfers from the Department of Aging and Disability to HHSC to address the Medicaid shortfall: $ 98,762,408 in General Revenue from Habilitation Services $ 43,527,524 in General Revenue from Long-term Care Services and Supports Transfers from State Health Services to HHSC to address the Medicaid shortfall: $ 5,900,000 in General Revenue from Community Primary Care Services Veterans Commission - Increase of 19.5 Full-Time-Equivalent Positions (FTEs) for FY 2015. Health and Human Services Commission -- Requirements that the agency report to the Legislative Budget Board certain information regarding capitation payments prior to making those payments to managed care organizations. This is associated with the appropriations made for both the Medicaid and CHIP Health Insurance Providers Fee and Federal income Tax payments. Midland College - Grant Agreement with Permian Basin Petroleum Museum Department of Public Safety - Limitation of Transfer Authority Department of Public Safety - Use of Funds for Recruit Schools Department of Transportation - Unexpended Balance Authority for Road Repairs to Energy Sectors Department of Transportation - Unexpended Balances for County Transportation Infrastructure Grants*Impact on Balances and RevenueGeneral Revenue Fund 001The bill would reduce General Revenue balances (Fund 001) in FY 2015 by $5,300,000 to be deposited to the credit of the Department of Insurance Operating Account No. 036. In addition, amounts estimated to be $10,000,000 would be deposited to the General Revenue Fund (Fund 001) from proceeds recovered from the final judgment in the Harris County v. Waste Management of Texas, Inc. The net impact to General Revenue Fund 001 would be a net gain of $4,700,000.Texas Department of Insurance (TDI) Operating Account No. 036The bill would increase receipts to the TDI Operating Account by $5,300,000 in amounts deposited from the General Revenue Fund. Methodology The amounts identified above represent changes to previously authorized amounts and purposes for the state fiscal year ending August 31, 2015. Technology The bill would provide funding to the Department of Family and Protective Services for the Title IV-E waiver pilot in Harris County ($0.8 million in General Revenue and $0.8 million in Federal Funds) and to the Office of Court Administration for the E-Filing System ($6.4 million in General Revenue). Local Government Impact The reduction in Foundation School Program (FSP) appropriations in fiscal year 2015 will have no local fiscal impact. School districts and charter schools generate FSP entitlement independent of the appropriations process; FSP appropriations are estimates of the amount necessary to fund entitlement in the coming biennium. 2014-15 appropriations are now estimated to be $710 million in General Revenue Funds more than the amount necessary to fund 2014-15 entitlement, primarily due to larger than projected settle-up savings and updated budget drivers, including district property values and student counts.The Parks and Wildlife Department would be appropriated up to $10 million from proceeds recovered from the final judgment in the Harris County v. Waste Management of Texas, Inc., for a two-year period beginning in fiscal year 2015 to transfer to Harris County to mitigate the effects of environmental contamination as specified in the bill. Source Agencies: LBB Staff: UP, KK, MS
Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofDept Ins Operating Acct36 Appropriation out ofFederal Funds555 2015 $284,828,031 $5,300,000 $213,064,844 2016 $0 $0 $0 2017 $0 $0 $0
2015 $284,828,031 $5,300,000 $213,064,844
2016 $0 $0 $0
2017 $0 $0 $0
General Revenue-Related Funds, Three-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2015 ($284,828,031) 2016 $0 2017 $0
2015 ($284,828,031)
2016 $0
2017 $0
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2015 ($280,128,031) 2016 $0 2017 $0 2018 $0 2019 $0
2015 ($280,128,031)
2016 $0
2017 $0
2018 $0
2019 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Probable Savings/(Cost) fromDept Ins Operating Acct36 Probable Revenue Gain fromDept Ins Operating Acct36 2015 ($284,828,031) ($213,064,844) ($5,300,000) $5,300,000 2016 $0 $0 $0 $0 2017 $0 $0 $0 $0 2018 $0 $0 $0 $0 2019 $0 $0 $0 $0 Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2014 2015 $4,700,000 19.5 2016 $0 0.0 2017 $0 2018 $0 2019 $0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Probable Savings/(Cost) fromDept Ins Operating Acct36 Probable Revenue Gain fromDept Ins Operating Acct36 2015 ($284,828,031) ($213,064,844) ($5,300,000) $5,300,000 2016 $0 $0 $0 $0 2017 $0 $0 $0 $0 2018 $0 $0 $0 $0 2019 $0 $0 $0 $0
2015 ($284,828,031) ($213,064,844) ($5,300,000) $5,300,000
2016 $0 $0 $0 $0
2017 $0 $0 $0 $0
2018 $0 $0 $0 $0
2019 $0 $0 $0 $0
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2014 2015 $4,700,000 19.5 2016 $0 0.0 2017 $0 2018 $0 2019 $0
2015 $4,700,000 19.5
2016 $0 0.0
2017 $0
2018 $0
2019 $0
Fiscal Analysis
* General Revenue-related Appropriation Reductions: Texas Public Finance Authority - Bond Debt Service Payments $ (21,000,000) Texas Education Agency - Foundation School Program, Account No. 193 $ (710,000,000) Water Development Board - Debt Service Savings $ (5,932,518) Texas Department of Transportation - Debt Service Savings relating to Proposition 12 Bonds $ (22,100,000) General Revenue-related Appropriation Increases: Facilities Commission - Emergency Maintenance at State Owned Buildings $ 9,538,658 Facilities Commission - Critical Operations and Health & Safety Maintenance (TSD) $ 10,952,024 State Preservation Board - Volunteer Firemen Monument $ 95,000 Family and Protective Services - Foster Care $ 17,729,316 Family and Protective Services - Title IV -E $ 800,000 Health and Human Services Commission - Medicaid $ 85,543,166 Health and Human Services Commission - Medicaid - Health Insurance Provider Fee and Federal Income Tax $ 79,685,024 Health and Human Services - CHIP Health Insurance Provider Fee and Federal Income Tax $ 4,516,607 Teacher Retirement System - TRS Care $ 768,100,754 Office of Court Administration - E-Filing System $ 6,400,000 Department of Criminal Justice - Correctional Managed Health Care (CMHC) $ 50,500,000 Parks and Wildlife Department - Contingency appropriation for the San Jacinto Lawsuit Settlement $ 10,000,000 * Net General Revenue-dedicated appropriations total an increase of $5,300,000 for fiscal year 2015 as follows: FY 2015 Department of Insurance Operating Acct No 036 - Healthy Texas Claims $ 5,300,000 * Net Federal Funds appropriations total an increase of $213,064,844 for fiscal year 2015 as follows: FY 2015 Federal Funds Appropriation Reductions: Health and Human Services - TANF Surplus in Cash Assistance Grants $ (35,083,683) Federal Funds Appropriation Increases: Family and Protective Services - Title IV -E $ 800,000 Health and Human Services Commission - Medicaid $ 118,373,797 Health and Human Services Commission - Medicaid - Health Insurance provider Fee and Federal Income Tax $ 113,570,204 Health and Human Services - CHIP Health Insurance Provider Fee and Federal Income Tax $ 15,404,526 * Appropriations Authority Changes Transfers within the Health and Human Services Commission (HHSC) to address the Medicaid shortfall: $101,900,000 in General Revenue from Integrated Eligibility and Enrollment for Medicaid $ 2,700,000 in General Revenue from the Office of the Inspector General $ 43,303 in General Revenue from TANF Cash Assistance Transfers from the Department of Aging and Disability to HHSC to address the Medicaid shortfall: $ 98,762,408 in General Revenue from Habilitation Services $ 43,527,524 in General Revenue from Long-term Care Services and Supports Transfers from State Health Services to HHSC to address the Medicaid shortfall: $ 5,900,000 in General Revenue from Community Primary Care Services Veterans Commission - Increase of 19.5 Full-Time-Equivalent Positions (FTEs) for FY 2015. Health and Human Services Commission -- Requirements that the agency report to the Legislative Budget Board certain information regarding capitation payments prior to making those payments to managed care organizations. This is associated with the appropriations made for both the Medicaid and CHIP Health Insurance Providers Fee and Federal income Tax payments. Midland College - Grant Agreement with Permian Basin Petroleum Museum Department of Public Safety - Limitation of Transfer Authority Department of Public Safety - Use of Funds for Recruit Schools Department of Transportation - Unexpended Balance Authority for Road Repairs to Energy Sectors Department of Transportation - Unexpended Balances for County Transportation Infrastructure Grants*Impact on Balances and RevenueGeneral Revenue Fund 001The bill would reduce General Revenue balances (Fund 001) in FY 2015 by $5,300,000 to be deposited to the credit of the Department of Insurance Operating Account No. 036. In addition, amounts estimated to be $10,000,000 would be deposited to the General Revenue Fund (Fund 001) from proceeds recovered from the final judgment in the Harris County v. Waste Management of Texas, Inc. The net impact to General Revenue Fund 001 would be a net gain of $4,700,000.Texas Department of Insurance (TDI) Operating Account No. 036The bill would increase receipts to the TDI Operating Account by $5,300,000 in amounts deposited from the General Revenue Fund.
General Revenue-related Appropriation Reductions:
Texas Public Finance Authority - Bond Debt Service Payments $ (21,000,000)
Texas Education Agency - Foundation School Program, Account No. 193 $ (710,000,000)
Water Development Board - Debt Service Savings $ (5,932,518)
Texas Department of Transportation - Debt Service Savings relating to Proposition 12 Bonds $ (22,100,000)
General Revenue-related Appropriation Increases:
Facilities Commission - Emergency Maintenance at State Owned Buildings $ 9,538,658
Facilities Commission - Critical Operations and Health & Safety Maintenance (TSD) $ 10,952,024
State Preservation Board - Volunteer Firemen Monument $ 95,000
Family and Protective Services - Foster Care $ 17,729,316
Family and Protective Services - Title IV -E $ 800,000
Health and Human Services Commission - Medicaid $ 85,543,166
Health and Human Services Commission - Medicaid - Health Insurance Provider Fee and Federal Income Tax $ 79,685,024
Health and Human Services - CHIP Health Insurance Provider Fee and Federal Income Tax $ 4,516,607
Teacher Retirement System - TRS Care $ 768,100,754
Office of Court Administration - E-Filing System $ 6,400,000
Department of Criminal Justice - Correctional Managed Health Care (CMHC) $ 50,500,000
Parks and Wildlife Department - Contingency appropriation for the San Jacinto Lawsuit Settlement $ 10,000,000
Net General Revenue-dedicated appropriations total an increase of $5,300,000 for fiscal year 2015 as follows:
FY 2015
Department of Insurance Operating Acct No 036 - Healthy Texas Claims $ 5,300,000
Net Federal Funds appropriations total an increase of $213,064,844 for fiscal year 2015 as follows:
FY 2015
Federal Funds Appropriation Reductions:
Health and Human Services - TANF Surplus in Cash Assistance Grants $ (35,083,683)
Federal Funds Appropriation Increases:
Family and Protective Services - Title IV -E $ 800,000
Health and Human Services Commission - Medicaid $ 118,373,797
Health and Human Services Commission - Medicaid - Health Insurance provider Fee and Federal Income Tax $ 113,570,204
Health and Human Services - CHIP Health Insurance Provider Fee and Federal Income Tax $ 15,404,526
Appropriations Authority Changes
Transfers within the Health and Human Services Commission (HHSC) to address the Medicaid shortfall:
$101,900,000 in General Revenue from Integrated Eligibility and Enrollment for Medicaid
$ 2,700,000 in General Revenue from the Office of the Inspector General
$ 43,303 in General Revenue from TANF Cash Assistance
Transfers from the Department of Aging and Disability to HHSC to address the Medicaid shortfall:
$ 98,762,408 in General Revenue from Habilitation Services
$ 43,527,524 in General Revenue from Long-term Care Services and Supports
Transfers from State Health Services to HHSC to address the Medicaid shortfall:
$ 5,900,000 in General Revenue from Community Primary Care Services
Veterans Commission - Increase of 19.5 Full-Time-Equivalent Positions (FTEs) for FY 2015.
Health and Human Services Commission -- Requirements that the agency report to the Legislative Budget Board certain information regarding capitation payments prior to making those payments to managed care organizations. This is associated with the appropriations made for both the Medicaid and CHIP Health Insurance Providers Fee and Federal income Tax payments.
Midland College - Grant Agreement with Permian Basin Petroleum Museum
Department of Public Safety - Limitation of Transfer Authority
Department of Public Safety - Use of Funds for Recruit Schools
Department of Transportation - Unexpended Balance Authority for Road Repairs to Energy Sectors
Department of Transportation - Unexpended Balances for County Transportation Infrastructure Grants
Methodology
The amounts identified above represent changes to previously authorized amounts and purposes for the state fiscal year ending August 31, 2015.
Technology
The bill would provide funding to the Department of Family and Protective Services for the Title IV-E waiver pilot in Harris County ($0.8 million in General Revenue and $0.8 million in Federal Funds) and to the Office of Court Administration for the E-Filing System ($6.4 million in General Revenue).
Local Government Impact
The reduction in Foundation School Program (FSP) appropriations in fiscal year 2015 will have no local fiscal impact. School districts and charter schools generate FSP entitlement independent of the appropriations process; FSP appropriations are estimates of the amount necessary to fund entitlement in the coming biennium. 2014-15 appropriations are now estimated to be $710 million in General Revenue Funds more than the amount necessary to fund 2014-15 entitlement, primarily due to larger than projected settle-up savings and updated budget drivers, including district property values and student counts.The Parks and Wildlife Department would be appropriated up to $10 million from proceeds recovered from the final judgment in the Harris County v. Waste Management of Texas, Inc., for a two-year period beginning in fiscal year 2015 to transfer to Harris County to mitigate the effects of environmental contamination as specified in the bill.
Source Agencies:
LBB Staff: UP, KK, MS
UP, KK, MS