LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 6, 2025 TO: Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2754 by Garcia, Josey (Relating to a pilot program awarding grants for the provision of personalized treatment protocols for homeless veterans diagnosed with substance use disorders.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2754, As Introduced: a negative impact of ($3,441,373) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($621,545)2027($2,819,828)2028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($621,545)1.02027($2,819,828)1.02028$00.02029$00.02030$00.0 Fiscal AnalysisThe bill would require the Health and Human Services Commission (HHSC) to establish and operate a pilot program to award grants for personalized treatment protocols to at least 100 homeless veterans diagnosed with a substance use disorder (SUD). The bill would allow HHSC to award a grant under the pilot program in accordance with a contract between HHSC and a grant recipient. HHSC may accept gifts, grants, and donations to operate the pilot program. The bill includes an expiration date for the pilot program and related enabling statute of September 1, 2027. The bill takes effect September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 6, 2025
TO: Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2754 by Garcia, Josey (Relating to a pilot program awarding grants for the provision of personalized treatment protocols for homeless veterans diagnosed with substance use disorders.), As Introduced
TO: Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2754 by Garcia, Josey (Relating to a pilot program awarding grants for the provision of personalized treatment protocols for homeless veterans diagnosed with substance use disorders.), As Introduced
Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs
Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2754 by Garcia, Josey (Relating to a pilot program awarding grants for the provision of personalized treatment protocols for homeless veterans diagnosed with substance use disorders.), As Introduced
HB2754 by Garcia, Josey (Relating to a pilot program awarding grants for the provision of personalized treatment protocols for homeless veterans diagnosed with substance use disorders.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2754, As Introduced: a negative impact of ($3,441,373) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2754, As Introduced: a negative impact of ($3,441,373) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($621,545)
2027 ($2,819,828)
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($621,545) 1.0
2027 ($2,819,828) 1.0
2028 $0 0.0
2029 $0 0.0
2030 $0 0.0
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to establish and operate a pilot program to award grants for personalized treatment protocols to at least 100 homeless veterans diagnosed with a substance use disorder (SUD). The bill would allow HHSC to award a grant under the pilot program in accordance with a contract between HHSC and a grant recipient. HHSC may accept gifts, grants, and donations to operate the pilot program. The bill includes an expiration date for the pilot program and related enabling statute of September 1, 2027. The bill takes effect September 1, 2025.
Methodology
This analysis assumes HHSC would contract with an organization to provide grants to eligible veterans with SUD. According to information provided by HHSC, the average grant could cost $26,543.79 per grant recipient. Analysis assumes the grant program would cost $2,654,379 in General Revenue in fiscal year 2027 to serve 100 veterans. Analysis assumes grants would not be awarded until fiscal year 2027 to allow for procurement- and contract-related activities to take place. The actual grant per recipient could vary depending on the number of veterans served and the level of the appropriation provided for this purpose, including the receipt of gifts, grants, and donations to operate the pilot program. However, since the bill expires September 1, 2027, HHSC could be appropriated the grant funding as early as fiscal year 2026 to allow for grant awards to occur as early as possible to grantees.This analysis assumes HHSC would need 1.0 Contract Specialist for procurement- and contract-related activities. Personnel-related costs, including salaries and benefits, are estimated to total $164,865 in General Revenue in fiscal year 2026 and $155,449 in General Revenue in fiscal year 2027.
Technology
The total technology cost is estimated to be $456,680 in General Revenue in fiscal year 2026 and $10,000 in General Revenue in fiscal year 2027. Costs are primarily related to an estimated $446,680 in General Revenue to make one-time modifications to the Clinical Management for Behavioral Health Services system to track the number of veterans receiving the grants. Costs also include an estimated $10,000 in General Revenue per fiscal year for software licenses. However, since the bill expires September 1, 2027, HHSC may not need technology-related appropriations if the modifications could not be completed in the time afforded by the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 403 Veterans Commission, 529 Health and Human Services Commission
403 Veterans Commission, 529 Health and Human Services Commission
LBB Staff: b > td > JMc, MGol, ER, SB, NV
JMc, MGol, ER, SB, NV