LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 23, 2017 TO: Honorable Joe Straus, Speaker of the House, House of Representatives 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 Passed 2nd House Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Passed 2nd House: a negative impact of ($1,000,799,175) through the biennium ending August 31, 2019.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
May 23, 2017
TO: Honorable Joe Straus, Speaker of the House, House of Representatives 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 Passed 2nd House
TO: Honorable Joe Straus, Speaker of the House, House of Representatives
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 Passed 2nd House
Honorable Joe Straus, Speaker of the House, House of Representatives
Honorable Joe Straus, Speaker of the House, House of Representatives
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 Passed 2nd House
HB2 by Zerwas (Relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations. ), As Passed 2nd House
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Passed 2nd House: a negative impact of ($1,000,799,175) through the biennium ending August 31, 2019.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Passed 2nd House: a negative impact of ($1,000,799,175) through the biennium ending August 31, 2019.
Appropriations: Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofFederal Funds555 Appropriation out ofTexas Emissions Reduction Plan5071 Appropriation out ofSystem Benefit Account5100 2017 $1,000,799,175 $1,599,849,506 ($31,000,000) ($1,209,355) 2018 $0 $0 $0 $0 2019 $0 $0 $0 $0 General Revenue-Related Funds, Three-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 ($1,000,799,175) 2018 $0 2019 $0 General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 ($1,000,799,175) 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) fromTexas Emissions Reduction Plan5071 Probable Savings/(Cost) fromSystem Benefit Account5100 2017 ($1,000,799,175) ($1,599,849,506) $31,000,000 $1,209,355 2018 $0 $0 $0 $0 2019 $0 $0 $0 $0 2020 $0 $0 $0 $0 2021 $0 $0 $0 $0 Fiscal Analysis The Senate Committee Substitute for House Bill 2 provides for the following appropriations-related provisions:General Revenue-related appropriations decreases of ($80,467,671) in fiscal year 2017 as follows:Texas Public Finance Authority - Bond Debt Service Payments ($51,566,581)Texas Department of Transportation - Bond Debt Service Payments ($14,191,000)Texas Facilities Commission - Lease Payments ($13,780,014)Texas Facilities Commission - Programs and Operations ($220,000)Texas Public Finance Authority - Programs and Operations ($217,487)Texas Education Agency - Programs and Operations ($492,589)General Revenue-related appropriations increases of $1,081,266,846 in fiscal year 2017 as follows:Department of Family and Protective Services - Entitlement Programs and Day Care $56,639,306 Department of Family and Protective Services - Critical Needs $101,697,474 Health and Human Services Commission - Medicaid Shortfall $793,586,397Health and Human Services Commission - Early Childhood Intervention $4,500,000Health and Human Services Commission - Comprehensive Rehabilitation Services $2,400,000Department of Aging and Disability Services - State Supported Living Centers $11,300,000Department of Aging and Disability Services - Mexia State Supported Living Center $2,400,000Department of State Health Services - State Hospitals $15,100,000Texas A&M Forest Service - Emergency Responses Reimbursement $7,450,427Department of Criminal Justice - Correctional Managed Health Care $80,000,000Juvenile Justice Department - Operational Shortfall $4,469,257 Animal Health Commission - Cattle Tick Fever Mitigation $649,987Kilgore College - Group Insurance $1,073,998General Revenue-dedicated appropriations decreases of ($32,209,355) in fiscal year 2017 as follows:Texas Commission on Environment Quality - Texas Emissions Reduction Plan ($31,000,000)Public Utility Commission - System Benefit Fund ($1,209,355)Federal Funds appropriations increases of $1,599,849,506 in fiscal year 2017 as follows: Health and Human Services Commission - Medicaid Shortfall $1,599,849,506The bill includes adjustments to appropriations authority, including:Transfer of $29,247,213 in General Revenue and $72,450,261 in Temporary Assistance for Needy Families (TANF) from the Department of Family and Protective Services (DFPS) to the Health and Human Services Commission (HHSC). These funds are replaced by the critical needs appropriation to DFPS.Transfer of $4,355,118 within DFPS to reduce a foster care payment shortfall.Transfer of $3,500,000 in capital budget authority within the Texas Department of Transportation (TxDOT) from Acquisition of Capital Equipment and Items to Transportation Items.The bill requires HHSC to receive written approval from the Legislative Budget Board (LBB) prior to expending any amount appropriated for Medicaid services in the bill.The bill requires IMPACT project cost overruns at DFPS to be paid from appropriated receipts, or another method of finance with LBB approval.The bill prohibits appropriation authority to the Texas Alcoholic Beverage Commission (TABC) for out-of state travel or event attendance or participation, except for documented law enforcement or investigative activities. The bill also prohibits receipt by or spending authority to TABC of payments made to it by trade, professional or industry organizations.The bill directs the Department of Public Safety (DPS), out of appropriated funds, to complete all Driver's License Improvement Plan (DLIP) projects by August 31, 2017.The bill requires those executive branch state agencies and institutions of higher education subject to the governor's hiring freeze directive issued January 31, 2017 to adhere to and lapse all savings derived from the directive. 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 Appropriation out ofTexas Emissions Reduction Plan5071 Appropriation out ofSystem Benefit Account5100 2017 $1,000,799,175 $1,599,849,506 ($31,000,000) ($1,209,355) 2018 $0 $0 $0 $0 2019 $0 $0 $0 $0
2017 $1,000,799,175 $1,599,849,506 ($31,000,000) ($1,209,355)
2018 $0 $0 $0 $0
2019 $0 $0 $0 $0
General Revenue-Related Funds, Three-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 ($1,000,799,175) 2018 $0 2019 $0
2017 ($1,000,799,175)
2018 $0
2019 $0
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2017 ($1,000,799,175) 2018 $0 2019 $0 2020 $0 2021 $0
2017 ($1,000,799,175)
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) fromTexas Emissions Reduction Plan5071 Probable Savings/(Cost) fromSystem Benefit Account5100 2017 ($1,000,799,175) ($1,599,849,506) $31,000,000 $1,209,355 2018 $0 $0 $0 $0 2019 $0 $0 $0 $0 2020 $0 $0 $0 $0 2021 $0 $0 $0 $0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Probable Savings/(Cost) fromTexas Emissions Reduction Plan5071 Probable Savings/(Cost) fromSystem Benefit Account5100 2017 ($1,000,799,175) ($1,599,849,506) $31,000,000 $1,209,355 2018 $0 $0 $0 $0 2019 $0 $0 $0 $0 2020 $0 $0 $0 $0 2021 $0 $0 $0 $0
2017 ($1,000,799,175) ($1,599,849,506) $31,000,000 $1,209,355
2018 $0 $0 $0 $0
2019 $0 $0 $0 $0
2020 $0 $0 $0 $0
2021 $0 $0 $0 $0
Fiscal Analysis
The Senate Committee Substitute for House Bill 2 provides for the following appropriations-related provisions:General Revenue-related appropriations decreases of ($80,467,671) in fiscal year 2017 as follows:Texas Public Finance Authority - Bond Debt Service Payments ($51,566,581)Texas Department of Transportation - Bond Debt Service Payments ($14,191,000)Texas Facilities Commission - Lease Payments ($13,780,014)Texas Facilities Commission - Programs and Operations ($220,000)Texas Public Finance Authority - Programs and Operations ($217,487)Texas Education Agency - Programs and Operations ($492,589)General Revenue-related appropriations increases of $1,081,266,846 in fiscal year 2017 as follows:Department of Family and Protective Services - Entitlement Programs and Day Care $56,639,306 Department of Family and Protective Services - Critical Needs $101,697,474 Health and Human Services Commission - Medicaid Shortfall $793,586,397Health and Human Services Commission - Early Childhood Intervention $4,500,000Health and Human Services Commission - Comprehensive Rehabilitation Services $2,400,000Department of Aging and Disability Services - State Supported Living Centers $11,300,000Department of Aging and Disability Services - Mexia State Supported Living Center $2,400,000Department of State Health Services - State Hospitals $15,100,000Texas A&M Forest Service - Emergency Responses Reimbursement $7,450,427Department of Criminal Justice - Correctional Managed Health Care $80,000,000Juvenile Justice Department - Operational Shortfall $4,469,257 Animal Health Commission - Cattle Tick Fever Mitigation $649,987Kilgore College - Group Insurance $1,073,998General Revenue-dedicated appropriations decreases of ($32,209,355) in fiscal year 2017 as follows:Texas Commission on Environment Quality - Texas Emissions Reduction Plan ($31,000,000)Public Utility Commission - System Benefit Fund ($1,209,355)Federal Funds appropriations increases of $1,599,849,506 in fiscal year 2017 as follows: Health and Human Services Commission - Medicaid Shortfall $1,599,849,506The bill includes adjustments to appropriations authority, including:Transfer of $29,247,213 in General Revenue and $72,450,261 in Temporary Assistance for Needy Families (TANF) from the Department of Family and Protective Services (DFPS) to the Health and Human Services Commission (HHSC). These funds are replaced by the critical needs appropriation to DFPS.Transfer of $4,355,118 within DFPS to reduce a foster care payment shortfall.Transfer of $3,500,000 in capital budget authority within the Texas Department of Transportation (TxDOT) from Acquisition of Capital Equipment and Items to Transportation Items.The bill requires HHSC to receive written approval from the Legislative Budget Board (LBB) prior to expending any amount appropriated for Medicaid services in the bill.The bill requires IMPACT project cost overruns at DFPS to be paid from appropriated receipts, or another method of finance with LBB approval.The bill prohibits appropriation authority to the Texas Alcoholic Beverage Commission (TABC) for out-of state travel or event attendance or participation, except for documented law enforcement or investigative activities. The bill also prohibits receipt by or spending authority to TABC of payments made to it by trade, professional or industry organizations.The bill directs the Department of Public Safety (DPS), out of appropriated funds, to complete all Driver's License Improvement Plan (DLIP) projects by August 31, 2017.The bill requires those executive branch state agencies and institutions of higher education subject to the governor's hiring freeze directive issued January 31, 2017 to adhere to and lapse all savings derived from the directive.
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