Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1282 by Springer (Relating to the establishment of the Texas Mental Health Care Enterprise Fund and the granting of license reciprocity to certain mental health professionals.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1282, As Introduced : a negative impact of ($926,153) through the biennium ending August 31, 2025.
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 to General Revenue Related Funds
2024
($470,752)
2025
($455,401)
2026
($455,735)
2027
($456,074)
2028
($456,416)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from GR Match For Medicaid 758
Probable Savings/(Cost) from Federal Funds 555
Change in Number of State Employees from FY 2023
2024
($440,704)
($30,048)
($30,048)
4.0
2025
($426,333)
($29,068)
($29,068)
4.0
2026
($426,645)
($29,090)
($29,090)
4.0
2027
($426,963)
($29,111)
($29,111)
4.0
2028
($427,283)
($29,133)
($29,133)
4.0
Fiscal Analysis
The bill would establish the Texas Mental Health Care Enterprise Fund (the fund) as an account in the general revenue fund consisting of appropriations, interest or other returns on the investment of money in the fund, gifts, grants, and other donations. The bill would require the Health and Human Services Commission (HHSC) to provide bonus payments from the fund to mental health professionals who work at local mental or behavioral health authorities, mental health state hospitals, the Waco Center for Youth, and certain public hospitals.
The bill would require certain licensing entities to issue a license to a person who is currently licensed as a mental health professional from another state or jurisdiction that imposes similar licensure requirements to Texas.
Methodology
The analysis assumes HHSC would require 4.0 additional full-time equivalents (FTEs) to implement the bonus payments to mental health professionals as described in the bill. This would include 1.0 Program Specialist VI to develop rules and procedures, provide technical assistance, and liaise with stakeholders and 3.0 Contract Specialist Vs to manage contracts, monitor performance, provide assistance to contractors, and conduct financial reviews. Costs for FTEs, including salary, benefits, technology, furniture, and supplies would total $0.5 million per fiscal year.
The cost estimate includes only the cost to administer the program and does not include funding required to provide bonus payments to mental health professionals. The fund would require appropriations beyond the administrative costs for HHSC to actually implement the bonus payment program, but the cost for bonus payment funding would depend on the preferred scale of the program and the number of eligible professionals. Due to the uncertainty about the preferred program scale and an unknown number of mental health professionals who would be eligible and apply for the program, an estimate for the cost of bonus payments cannot be determined.
Based on information provided by the Texas Department of Licensing and Regulation, the Texas Medical Board, the Texas Board of Nursing, and the Behavioral Health Executive Council, it is assumed that the costs related to the granting of license reciprocity to certain mental health professionals could be absorbed within current resources.
According to the Comptroller of Public Accounts, the fiscal impact on the state cannot be determined. Initial legislative appropriations and other amounts for the fund created under the bill, the amount of bonus payments provided, and potential revenue implications due to licensing are unknown.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Technology
FTE-related technology costs would be less than $0.1 million each fiscal year.
Local Government Impact
Local mental and behavioral health authorities could experience a positive fiscal impact due to bonus payments received by mental health professionals.
Source Agencies:
304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation, 503 Texas Medical Board, 507 Texas Board of Nursing, 510 Behavioral Health Executive Council, 529 Health and Human Services Commission