LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION March 16, 2017 TO: Honorable John Zerwas, Chair, House Committee on Appropriations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2 by Zerwas (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Introduced: a positive impact of $39,856,983 through the biennium ending August 31, 2019.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
March 16, 2017
TO: Honorable John Zerwas, Chair, House Committee on Appropriations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2 by Zerwas (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Introduced
TO: Honorable John Zerwas, Chair, House Committee on Appropriations
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2 by Zerwas (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Introduced
Honorable John Zerwas, Chair, House Committee on Appropriations
Honorable John Zerwas, Chair, House Committee on Appropriations
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2 by Zerwas (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Introduced
HB2 by Zerwas (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Introduced: a positive impact of $39,856,983 through the biennium ending August 31, 2019.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Introduced: a positive impact of $39,856,983 through the biennium ending August 31, 2019.
Appropriations: Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofFederal Funds555 Appropriation out ofEconomic Stabilization Fund599 2017 ($39,856,983) $1,735,043,901 $1,424,600,808 2018 $0 $0 $7,169,791 2019 $0 $0 $0 General Revenue-Related Funds, Three-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 $39,856,983 2018 $0 2019 $0 General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 $39,856,983 2018 $0 2019 $0 2020 $0 2021 $0 All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Probable Savings/(Cost) fromEconomic Stabilization Fund599 2017 $39,856,983 ($1,735,043,901) ($1,424,600,808) 2018 $0 $0 ($7,169,791) 2019 $0 $0 $0 2020 $0 $0 $0 2021 $0 $0 $0 Fiscal Analysis HB 2 provides for the following appropriations-related provisions:Net General Revenue-related appropriations total a decrease of ($39,856,983) in fiscal year 2017 as follows:Texas Public Finance Authority - Bond Debt Service Payments ($39,856,983)Net Federal Funds appropriations total an increase of $1,735,043,901 in fiscal year 2017 as follows:Health and Human Services Commission - Acute Care Therapy Services $29,800,000 Health and Human Services Commission - Medicaid Shortfall $1,705,243,901 Net Economic Stabilization Fund appropriations total an increase of $1,424,600,808 in fiscal year 2017 as follows:Family and Protective Services - Entitlement Programs and Day Care $46,310,266 Family and Protective Services - Critical Needs $101,697,474 Health and Human Services Commission - Acute Care Therapy Services $21,500,000 Health and Human Services Commission - Medicaid Shortfall $930,733,818 Health and Human Services Commission - Critical Life and Safety Needs $188,609,263 Health and Human Services Commission - Forensic Bed Capacity $50,000,000 Texas A&M Forest Service - Emergency Responses Reimbursement $5,100,000 Department of Criminal Justice - Correctional Managed Health Care $80,000,000 Animal Health Commission - Cattle Tick Fever Mitigation $649,987 Net Economic Stabilization Fund appropriations total an increase of $7,169,791 in fiscal year 2018 as follows:Animal Health Commission - Cattle Tick Fever Mitigation $7,169,791 The bill also includes adjustments to appropriations authority, including most significantly the transfer of $29,247,213 in General Revenue and $72,450,261 in Temporary Assistance for Needy Families (TANF) from DFPS to the Health and Human Services Commission (HHSC). These funds are replaced by the appropriation made in Section 9. The bill also amends HHSC Rider 50, subsection (c) to realign the General Revenue savings target from therapy rate reductions for fiscal year 2017 from $50,000,000 to $28,000,000 and deletes the requirement that fiscal year 2017 therapy rates shall be reduced further if the policy initiatives in the rider are not achieved.The bill requires HHSC to receive written approval from the LBB prior to expending any amount appropriated for Medicaid Services in the bill. Methodology The amounts identified above represent changes to previously authorized amounts and purposes for the state fiscal year ending August 31, 2017, with the exception of the authorization of $7,169,791 for the Animal Health Commission; that authorization is for the state biennium ending August 31, 2019.
Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofFederal Funds555 Appropriation out ofEconomic Stabilization Fund599 2017 ($39,856,983) $1,735,043,901 $1,424,600,808 2018 $0 $0 $7,169,791 2019 $0 $0 $0
2017 ($39,856,983) $1,735,043,901 $1,424,600,808
2018 $0 $0 $7,169,791
2019 $0 $0 $0
General Revenue-Related Funds, Three-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 $39,856,983 2018 $0 2019 $0
2017 $39,856,983
2018 $0
2019 $0
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 $39,856,983 2018 $0 2019 $0 2020 $0 2021 $0
2017 $39,856,983
2018 $0
2019 $0
2020 $0
2021 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Probable Savings/(Cost) fromEconomic Stabilization Fund599 2017 $39,856,983 ($1,735,043,901) ($1,424,600,808) 2018 $0 $0 ($7,169,791) 2019 $0 $0 $0 2020 $0 $0 $0 2021 $0 $0 $0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Probable Savings/(Cost) fromEconomic Stabilization Fund599 2017 $39,856,983 ($1,735,043,901) ($1,424,600,808) 2018 $0 $0 ($7,169,791) 2019 $0 $0 $0 2020 $0 $0 $0 2021 $0 $0 $0
2017 $39,856,983 ($1,735,043,901) ($1,424,600,808)
2018 $0 $0 ($7,169,791)
2019 $0 $0 $0
2020 $0 $0 $0
2021 $0 $0 $0
Fiscal Analysis
HB 2 provides for the following appropriations-related provisions:Net General Revenue-related appropriations total a decrease of ($39,856,983) in fiscal year 2017 as follows:Texas Public Finance Authority - Bond Debt Service Payments ($39,856,983)Net Federal Funds appropriations total an increase of $1,735,043,901 in fiscal year 2017 as follows:Health and Human Services Commission - Acute Care Therapy Services $29,800,000 Health and Human Services Commission - Medicaid Shortfall $1,705,243,901 Net Economic Stabilization Fund appropriations total an increase of $1,424,600,808 in fiscal year 2017 as follows:Family and Protective Services - Entitlement Programs and Day Care $46,310,266 Family and Protective Services - Critical Needs $101,697,474 Health and Human Services Commission - Acute Care Therapy Services $21,500,000 Health and Human Services Commission - Medicaid Shortfall $930,733,818 Health and Human Services Commission - Critical Life and Safety Needs $188,609,263 Health and Human Services Commission - Forensic Bed Capacity $50,000,000 Texas A&M Forest Service - Emergency Responses Reimbursement $5,100,000 Department of Criminal Justice - Correctional Managed Health Care $80,000,000 Animal Health Commission - Cattle Tick Fever Mitigation $649,987 Net Economic Stabilization Fund appropriations total an increase of $7,169,791 in fiscal year 2018 as follows:Animal Health Commission - Cattle Tick Fever Mitigation $7,169,791 The bill also includes adjustments to appropriations authority, including most significantly the transfer of $29,247,213 in General Revenue and $72,450,261 in Temporary Assistance for Needy Families (TANF) from DFPS to the Health and Human Services Commission (HHSC). These funds are replaced by the appropriation made in Section 9. The bill also amends HHSC Rider 50, subsection (c) to realign the General Revenue savings target from therapy rate reductions for fiscal year 2017 from $50,000,000 to $28,000,000 and deletes the requirement that fiscal year 2017 therapy rates shall be reduced further if the policy initiatives in the rider are not achieved.The bill requires HHSC to receive written approval from the LBB prior to expending any amount appropriated for Medicaid Services in the bill.
Methodology
The amounts identified above represent changes to previously authorized amounts and purposes for the state fiscal year ending August 31, 2017, with the exception of the authorization of $7,169,791 for the Animal Health Commission; that authorization is for the state biennium ending August 31, 2019.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: UP, KK, SD, WP
UP, KK, SD, WP