LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 15, 1999
TO: Honorable Judith Zaffirini, Chair, Senate Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1503 by Gray (relating to the continuation and
functions of the Interagency Council on Early Childhood
Intervention), Committee Report 2nd House, Substituted
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* Estimated Two-Year Net Impact to General Revenue Related Fundsfor *
* HB1503, Committee Report 2nd House, Substituted: impact of $0 *
* through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings from Federal Probable (Cost) from Federal *
* Year Funds Funds *
* 0555 0555 *
* 2000 $2,464,000 $(50,000) *
* 2001 2,464,000 0 *
* 2002 2,464,000 0 *
* 2003 2,464,000 0 *
* 2004 2,464,000 0 *
***************************************************************************
Fiscal Analysis
The bill would continue the Interagency Council on Early Childhood
Intervention (ECI) and set a new sunset date of September 1, 2011.
The bill would require the Interagency Council on Early Childhood
Intervention (ECI), in cooperate with the Health and Human Services
Commission (HHSC), to select an appropriate automated system(s) used by a
state agency to plan, manage and maintain records of client services.
The agency would be required to develop a plan and an implementation
schedule regarding the use of the appropriate automated system(s) and
submit the plan and schedule to HHSC, the legislature and the appropriate
legislative oversight committee(s), by March 1, 2000.
The bill would require ECI to select providers and renew provider
contracts on a "best value" basis. It also would require the agency and
HHSC to review the ECI funding system to maximize federal, private and
local funding. According to the Sunset Advisory Commission, these
requirements would generate savings and revenues for the agency and its
contractors to fund services for additional children and their families.
Methodology
According to ECI, consultant services would be needed to comply with the
requirements of the bill to select, in cooperation with HHSC, an
appropriate automated system(s) used by a state agency to plan, manage
and maintain records of client services. It is assumed that 500 hours of
consultant services would be needed. The fee for consultant services is
estimated at $100 per hour (500 hours X $100 per hour = $50,000).
According to the Sunset Advisory Commission (SAC), the selection of
providers and renewal of provider contracts based on "best value", and
the maximization of federal, private and local funding, could result in
total savings estimated at $2,464,000 for each fiscal year, 2000-2004.
Based on ECI's Contract Performance Measures for fiscal year 1998
report, the average cost per child was $6,617. Thirty-two of the
agency's 70 contractors had total costs per child that were above the
statewide average. It is assumed that if these providers were funded at
no more than the statewide average through competitive procurement
strategies, an additional $3.4 million would be available to fund
services. SAC estimates that approximately $1,564,000 in savings could be
realized from competitive procurement in each of fiscal years 2000
through 2004.
According to SAC, maximizing Medicaid reimbursements for eligible ECI
services could result in an additional $900,000 in each of the fiscal
years 2000 and 2001. It is assumed that ECI Medicaid reimbursements to
providers would increase by 10 percent each fiscal year.
Total savings per fiscal year would be $2,464,000. It is assumed the
savings would be from federal funds due to a federal grant award
requirement that the State maintains its level of effort in state
spending.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, BB, RM