LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 9, 1995
TO: Honorable Judith Zaffirini, Chair IN RE: House Bill No. 865,
Committee on Health & Human Services as engrossed
Senate By: Maxey, et al.
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
865 (Relating to an increase in federal funding for mental health
services for children and families.) this office has determined
the following:
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 require the Department of Mental Health and Mental
Retardation (MHMR) to enter into an interagency agreement with
the Department of Human Services (DHS) to establish federal
funding reimbursement for mental health services for certain
Texas families.
The bill would require the interagency agreement to amend the
eligibility requirements of the Title IVA- Emergency Assistance
plan to include mental health emergencies. The agreement would
prescribe the procedures the agencies would use to delegate to
MHMR and to local mental health and mental retardation
authorities the administration of mental health emergency
assistance.
The bill would require under the interagency agreement that MHMR
certify to DHS the nonfederal expenditures for which the state
would claim federal reimbursement. DHS would retain
responsibility for making final eligibility decisions. The bill
would require MHMR to allocate to local mental health and mental
retardation authorities 66 percent of the federal funds
received.
The interagency agreement is needed because DHS is designated as
the single state agency for Title IVA-Emergency Assistance funds
and state plan. The fiscal estimate assumes that federal funding
for emergency assistance under Title IVA of the Social Security
Act could be used to fund mental health services. This federal
funding source requires that defined emergencies provide
assistance to youth and their families. The federal reimbursement
rate is 50 percent of the cost of maintenance, services and
administration.
When the eligibility requirements are written, it is expected
that the State will receive additional revenues from Federal
Funds. However, there may be some costs that cannot currently be
identified related to the costs of services provided after the
one-time assistance for emergency services are provided. These
additional costs are unknown at this time.
Additionally, the Title IV-A program is under review by the
Congress. Current versions of legislation have this program
becoming a Block Grant program with reduced appropriations. The
enactment of such legislation would seriously affect the
additional federal fund revenues mentioned above and the savings
to the State shown below.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Savings
Year from General
Revenue Fund 001
1996 $1,095,000
1997 2,191,000
1998 2,191,000
1999 2,191,000
2000 2,191,000
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
The fiscal implication to units of local government cannot be
determined.
Source: Department of Human Services, Texas Department of
Mental Health and Mental Retardation
LBB Staff: JK, GT, DF