Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  March 20, 1997
      TO: Honorable Allen Hightower, Chair            IN RE:  House Bill No. 2074, Committee Report 1st House, Substituted
          Committee on Corrections                              By: Hightower
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on HB2074 ( Relating 
to the continuation and functions of the Texas Youth Commission.) 
this office has detemined the following:
         Biennial Net Impact to General Revenue Funds by HB2074-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in no fiscal 
implication through the biennium ending August 31, 1999.

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 provide for the continuation 
of the Texas Youth Commission for the standard 12-year Sunset 
review cycle.  The bill would also require the establishment 
and use of sound performance-based contracting practices for 
residential treatment services and for the Commission to apply 
for federal Medicaid benefits when cost-effective.


Texas Youth Commission is subject to the provisions of the Texas 
Sunset Act.  Funding for  the agency is included in the General 
Appropriations Act, as introduced.  The appropriations would 
be financed from general revenue, appropriated receipts, interagency 
contracts, and earned federal funds and would provide $163,737,624 
and $183,779,430 for fiscal years 1998 and 1999 respectively, 
while providing for 3,975.5 employees in fiscal year 1998 and 
4,399.5 in fiscal year 1999.

No fiscal implication to units 
of local government is anticipated.
   Source:            Agencies:   116   Sunset Advisory Commission
                                         694   Youth Commission
                      LBB Staff:   JK ,CB ,RT