LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 24, 1997
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 2313
Committee on Human Services By: Van de Putte
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2313 ( Relating
to the provision of transportation services to entities that
receive transportation funds from the federal government in
connection with the provision of social services.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2313-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(3,283,200) 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.
The bill would amend Title 9 of the Human Resources
Code by adding Chapter 136. The bill would require a state
agency, political subdivision of the state, or entity under
contract with a state agency or political subdivision of the
state which receives federal funding for social services which
may be used for transportation services to contract with a metropolitan
transit authority, a rural transit district, an urban transit
district, or another recipient of public transportation funds
to provide client transit services.
Fiscal Analysis
It is assumed the bill would oblige state agencies, political
subdivisions of the state, and entities under contract with
state agencies or political subdivisions of the state to contract
with public transportation providers for all client transport
services.
The bill would impact several state health and
human service agencies' client transport programs. For simplicity,
this note will focus on how the bill would impact one of the
state's largest client transport programs: the Department of
Health's Medicaid Transport (MT) program.
(The Department
of Mental Health and Mental Retardation indicates there would
be an impact to its Community and Campus Transportation (CCT)
program, but could not provide complete data at the time of
this writing.)
It is estimated that the Department of Health
provides 2,000,000 rides per year through its MT program at
an average cost per ride of $11.52. Rides are provided by private
and public entities, and individuals who contract with the department.
Methodolgy
It is assumed only one public transit entity will be available
in most regions of the state for state agencies or their affiliates
to contract with. Because of the lack of competition and the
need for public transportation entities to acquire additional
vehicles and employees to accommodate increased demand, we assume
a 25% increase over current rates. Additional costs for the
MT program would be paid at the Medicaid client services match,
approximately 38% state and 62% federal.
It is assumed that
contract negotiations and the transition to public transportation
would require at least six months to complete. Therefore, costs
for FY 1998 are discounted by 50%.
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 (Cost) Probable (Cost)
to General to Federal Funds
Revenue Fund
0001 0555
1998 ($1,094,400) ($1,785,600)
1998 (2,188,800) (3,571,200)
2000 (2,188,800) (3,571,200)
2001 (2,188,800) (3,571,200)
2002 (2,188,800) (3,571,200)
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 ($1,094,400)
1999 (2,188,800)
2000 (2,188,800)
2001 (2,188,800)
2002 (2,188,800)
No significant fiscal implication to units of local government
is anticipated. It is assumed that any increased costs to local
transit providers would be passed along through rate increases.
Source: Agencies: 655 Texas Department of Mental Health and Mental Retardation
324 Department of Human Services
529 Health and Human Services Commission
501 Department of Health
LBB Staff: JK ,BB ,PP