LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION March 29, 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.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB2, Committee Report 1st House, Substituted: a negative impact of ($1,136,823,805) through the biennium ending August 31, 2019.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
March 29, 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.), Committee Report 1st House, Substituted
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.), Committee Report 1st House, Substituted
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.), Committee Report 1st House, Substituted
HB2 by Zerwas (relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, Committee Report 1st House, Substituted: a negative impact of ($1,136,823,805) through the biennium ending August 31, 2019.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, Committee Report 1st House, Substituted: a negative impact of ($1,136,823,805) through the biennium ending August 31, 2019.
Appropriations: Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofFederal Funds555 2017 $1,136,823,805 $1,735,043,901 2018 $0 $0 2019 $0 $0 General Revenue-Related Funds, Three-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 ($1,136,823,805) 2018 $0 2019 $0 General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 ($1,136,823,805) 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 2017 ($1,136,823,805) ($1,735,043,901) 2018 $0 $0 2019 $0 $0 2020 $0 $0 2021 $0 $0 Fiscal Analysis CSHB 2 provides for the following appropriations-related provisions:General Revenue-related appropriations decrease of ($53,636,997) in fiscal year 2017 as follows:Texas Public Finance Authority - Bond Debt Service Payments ($53,636,997)General Revenue-related appropriations increases of $1,190,460,802 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 Texas A&M Forest Service - Emergency Responses Reimbursement $5,100,000 Department of Criminal Justice - Correctional Managed Health Care $80,000,000Juvenile Justice Department - Operational Shortfall $4,469,257 Animal Health Commission - Cattle Tick Fever Mitigation $649,987Federal Funds appropriations increases 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 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 critical needs appropriation to DFPS. 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 $28,500,000 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.
Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofFederal Funds555 2017 $1,136,823,805 $1,735,043,901 2018 $0 $0 2019 $0 $0
2017 $1,136,823,805 $1,735,043,901
2018 $0 $0
2019 $0 $0
General Revenue-Related Funds, Three-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 ($1,136,823,805) 2018 $0 2019 $0
2017 ($1,136,823,805)
2018 $0
2019 $0
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 ($1,136,823,805) 2018 $0 2019 $0 2020 $0 2021 $0
2017 ($1,136,823,805)
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 2017 ($1,136,823,805) ($1,735,043,901) 2018 $0 $0 2019 $0 $0 2020 $0 $0 2021 $0 $0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 2017 ($1,136,823,805) ($1,735,043,901) 2018 $0 $0 2019 $0 $0 2020 $0 $0 2021 $0 $0
2017 ($1,136,823,805) ($1,735,043,901)
2018 $0 $0
2019 $0 $0
2020 $0 $0
2021 $0 $0
Fiscal Analysis
CSHB 2 provides for the following appropriations-related provisions:General Revenue-related appropriations decrease of ($53,636,997) in fiscal year 2017 as follows:Texas Public Finance Authority - Bond Debt Service Payments ($53,636,997)General Revenue-related appropriations increases of $1,190,460,802 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 Texas A&M Forest Service - Emergency Responses Reimbursement $5,100,000 Department of Criminal Justice - Correctional Managed Health Care $80,000,000Juvenile Justice Department - Operational Shortfall $4,469,257 Animal Health Commission - Cattle Tick Fever Mitigation $649,987Federal Funds appropriations increases 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 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 critical needs appropriation to DFPS. 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 $28,500,000 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.
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