LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 17, 1997
         
         
      TO: Honorable Allen Hightower, Chair            IN RE:  House Bill No. 2074
          Committee on Corrections                              By: Hightower
          House
          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-As Introduced
         
Implementing the provisions of the bill would result in no fiscal 
implication 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 provide for the continuation 
of the Texas Youth Commission for the standard 12-year Sunset 
review cycle.  In addition, the bill would require the Commission, 
jointly with the Texas Juvenile Probation Commission, to develop 
voluntary county pilot programs that would be eligible to access 
state juvenile correctional funds to provide services to delinquent 
youth at the community level.  State funds made available for 
the pilot programs would be offset by either reduced commitments 
to the state or the payment by a participating county for the 
commitment of a youth to the state.  The pilot program would 
not be large enough to have a significant impact on Commission 
programming for facilities or staff.

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.

Methodology

The 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.

Participating units of local government in the 
pilot programs would benefit by having greater access to state 
juvenile correctional funds allowing participating units to 
use these funds for providing juvenile probation services at 
the community level.   Greater access to state juvenile correctional 
funds will not have an impact on the state because local units 
would either reduce the number of youth committed, or pay for 
the commitment of a youth, to the Commission.
          
   Source:            Agencies:   665   Juvenile Probation Commission
                                         694   Youth Commission
                                         116   Sunset Advisory Commission
                      LBB Staff:   JK ,CB ,RT