LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 2, 1995
TO: Honorable Harvey Hilderbran, Chair IN RE: Committee Substitute
Committee on Human Services for House
House of Representatives Bill No. 1649
Austin, Texas By: Raymond, Maxey
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
1649 (Relating to the development and implementation of an
electronic data processing system to expedite payments to certain
child-care providers) this office has determined the following:
The bill implements Gaining Ground recommendation HHS 25. It
requires the Department of Human Services (DHS) to develop and
implement an electronic vendor payment system to expedite
payments to certain child-care providers. The system should
incorporate the use of an electronic scanner or other electronic
technology to centrally process data. DHS is responsible for
selecting the most cost-effective method for processing the data.
In determining cost-effectiveness, DHS has the option to contract
with another public or private entity to implement the system.
DHS, in conjunction with the Child Care Management System (CCMS)
contractors, must monitor the accuracy of the data to be
processed using the electronic vendor payment system.
The bill creates the Work Group on Child-Care Electronic Data
Processing. The work group is to advise and assist DHS in
developing the vendor payment system. The group is to be
composed a representative of the following agencies:
* Health and Human Services Commission (HHSC), appointed by the
commissioner of HHSC;
* Texas Department of Human Services, appointed by the
commissioner of DHS;
* State Comptroller's Office, appointed by the Comptroller;
* Child-Care Management System contractor, appointed by the
commissioner of HHSC; and
* technical experts with knowledge in electronic data
processing, appointed by the
commissioner of HHSC.
Members of the work group are not to receive any additional
compensation for serving on the work group and are to meet at
least once a month.
Currently, the City of San Antonio, City of Austin, and Ark-Tex
Council of Governments are CCMS contractors. The implementation
of the electronic vendor payment system would effect their method
of operation. In effect the system would reduce revenue receipts
at the local level due to the reduction of the number of staff
needed to process claims under the current system. This would
not be a saving because the centralized vendor payment system
will have to be staffed (TDHS staff or CCMS contractor staff).
DHS is currently in the process of developing a more efficient
system for processing of vendor claims. The CCMS System
Redesign's implementation date is scheduled for December 1995.
The system enhancements include:
* preprinted claims, which the vendors will be required only to
verify and update information;
* claims will be preverified with errors corrected prior to
submission for payment;
* claim rejections will be communicated electronically;
* vendors will have the option of electronic funds transfers
directly from the Comptroller's
Office; and
* CCMS data will be available.
The assumptions made in determining the fiscal impact of
developing and implementing a centralized vendor payment system
includes the redesigning of the proposed system currently being
developed. The cost of implementing the system follow:
* programming done by MIS personnel will cost $242,500;
* rework done by systems contractor will cost $1,126,160;
* computer hardware and software will cost $600,000; and
* maintenance of this equipment will cost $30,000 per year,
starting FY 1997.
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 Cost Out Probable Cost Out Change in
Year of General of Federal Funds Number of State
Revenue Fund 001 555 Employees from
FY 1995
1996 $1,909,600 $59,060 .0
1997 7,500 22,500 .0
1998 7,500 22,500 .0
1999 7,500 22,500 .0
2000 7,500 22,500 .0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Comptroller of Public Accounts, Department of Human
Services,
Health and Human Services Commission
LBB Staff: JK, MU, DF