LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 14, 1997
TO: Honorable Hugo Berlanga, Chair IN RE: House Bill No. 1734
Committee on Public Health By: Delisi
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1734 ( Relating
to the monitoring of community mental health and mental retardation
centers.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1734-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(217,751) to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would require the Health and Human Services Commission
to periodically audit the finances and performance of community
mental health and mental retardation centers. HHSC would be
required to prescribe procedures for financial and performance
audits for community mental health and mental retardation centers.
These procedures would be developed with the assistance of
state agencies and departments that contract with the centers.
The procedures could not require more than one audit of the
centers per calendar year and would be consistent with any federal
requirements related to the funding received by centers.
The
State Auditor would be required to review and recommend changes
to the audit procedures developed by HHSC. The Commission would
be required to complete these audit procedures and report the
results to the legislature no later than December 1, 1998.
Methodolgy
The bill would partially implement Texas Performance Review
(TPR) recommendation HHS20 in "Disturbing the Peace: The Challenge
of Change in Texas Government."
To implement the provisions
of the bill, it is assumed that the Health and Human Services
Commission would hire two full time auditors to perform the
audits and to prepare the reports to the legislature. It is
assumed that the costs would be phased-in during the first year
and held constant each year thereafter. Comprehensive financial
and performance audits would be conducted on a minimum of one
third of the centers each year. In the event that unacceptable
audit findings occur, the audit frequency would increase for
the affected centers. If the audit process is successful, there
may be savings to the affected agencies with use of the audit
results.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 ($93,529) 1.3
1998 (124,222) 2.0
2000 (124,222) 2.0
2001 (124,222) 2.0
2002 (124,222) 2.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($93,529)
1999 (124,222)
2000 (124,222)
2001 (124,222)
2002 (124,222)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
In the event that audit findings result in more efficient use
of resources by the community centers, local government may
benefit positively by the provisions of the bill.
Source: Agencies: 308 State Auditor's Office
655 Texas Department of Mental Health and Mental Retardation
529 Health and Human Services Commission
517 Commission on Alcohol and Drug Abuse
304 Comptroller of Public Accounts
532 Interagency Council on Early Childhood Intervention
LBB Staff: JK ,BB ,AZ