LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 3, 1999
TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1676 by Junell (relating to permanent funds for certain
public health purposes), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* HB1676, As Engrossed: $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. *
* *
* The bill would transfer $500 million in tobacco settlement *
* receipts, anticipated to be deposited into the General Revenue *
* Fund, to five new permanent funds. *
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General Revenue-Related Funds, Six-Year Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 1999 $0 *
* 2000 0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Six-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year Revenue Revenue Savings/ Revenue Number of *
* Gain/(Loss) Gain/(Loss) (Cost) from Gain/(Loss) State *
* from to Permanent to Employees *
* GR-Acct. Permanent Fund for Permanent from FY 1998 *
* 5040 Fund for Tobacco Fund for *
* Tobacco Tobacco Education & Children & *
* Settlement Education & Enforcement Public *
* Temporary Enforcement Health *
* Hold *
* 5040 *
* 1999 $200,000,000 $0$125,000,000 0.0 *
* $(500,000, *
* 000) *
* 2000 0 11,200,000 7,000,000 14.0 *
* (11,200,000) *
* 2001 0 11,200,000 7,000,000 21.0 *
* (11,200,000) *
* 2002 0 11,200,000 7,000,000 21.0 *
* (11,200,000) *
* 2003 0 11,200,000 7,000,000 21.0 *
* (11,200,000) *
* 2004 0 11,200,000 7,000,000 21.0 *
* (11,200,000) *
***********************************************************************
***************************************************************************
*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Revenue Savings/(Cost) Revenue *
* from Permanent Gain/(Loss) to from Permanent Gain/(Loss) to *
* Fund for Permanent Fund Fund for Permanent Fund *
* Children & for Emergency Emergency for Rural *
* Public Health Medical Medical Health Facility *
* Services & Services & Capital *
* Trauma Care Trauma Care Improvement *
* 1999 $0 $100,000,000 $0 $50,000,000 *
* 2000 (7,000,000) 5,600,000 (5,600,000) 2,800,000 *
* 2001 (7,000,000) 5,600,000 (5,600,000) 2,800,000 *
* 2002 (7,000,000) 5,600,000 (5,600,000) 2,800,000 *
* 2003 (7,000,000) 5,600,000 (5,600,000) 2,800,000 *
* 2004 (7,000,000) 5,600,000 (5,600,000) 2,800,000 *
***************************************************************************
**************************************************************************
*Fiscal Probable Probable Revenue Probable *
* Year Savings/(Cost) from Gain/(Loss) to Savings/(Cost) from *
* Permanent Fund for Community Hospital Community Hospital *
* Rural Health Capital Improvement Capital Improvement *
* Facility Capital Fund Fund *
* Improvement *
* 1999 $0 $25,000,000 $0 *
* 2000 (2,800,000) 1,400,000 (1,400,000) *
* 2001 (2,800,000) 1,400,000 (1,400,000) *
* 2002 (2,800,000) 1,400,000 (1,400,000) *
* 2003 (2,800,000) 1,400,000 (1,400,000) *
* 2004 (2,800,000) 1,400,000 (1,400,000) *
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Fiscal Analysis
The bill would create several special funds in the State Treasury outside
the General Revenue Fund. Each would consist of money transferred as
directed by the Legislature, gifts and grants contributed to the fund,
and interest received from investment of money in the fund. Funds could
be appropriated to pay money the federal government determines that the
state should repay to the federal government, or that the federal
government should recoup from the state in the event of national tobacco
legislation.
The bill would transfer $200 million to a Permanent Fund for Tobacco
Education and Enforcement; interest received could be appropriated to the
Department of Health (TDH) for programs to reduce the use of tobacco
products.
A new Permanent Fund for Children and Public Health would consist of a
$125 million transfer; interest received could be appropriated to TDH for
children's health care and grants to local communities to address public
health priorities.
The Permanent Fund for Emergency Medical Services and Trauma Care would
receive a transfer of $100 million; interest received could be
appropriated to the TDH for programs to provide emergency medical
services and trauma care.
The bill would transfer $50 million to a new Permanent Fund for Rural
Health Facility Capital Improvement; interest received could be
appropriated to the Center for Rural Health Initiatives (rural health
center). The bill would allow the rural health center to use money
appropriated to make grants or low interest loans to certain units of
local government for capital improvements to existing public health
facilities, to construct new public health facilities, or to purchase
capital equipment for public health.
The Community Hospital Capital Improvement Fund would receive a $25
million transfer; interest received could be appropriated to TDH to
provide grants, loans, or loan guarantees to certain public or nonprofit
community hospitals located in urban areas of the state.
Methodology
Analysis by the Comptroller of Public Accounts assumes that the $500
million to be transferred would come from General Revenue Account
5040-Tobacco Settlement Temporary Hold and would occur in fiscal year
1999.
No other transfers of state money, and no gifts or grants were assumed.
It is assumed there would no significant loss in General Revenue Fund
interest earnings in fiscal year 2000 and no interest earnings loss in
2001 and beyond.
It is assumed that the TDH would develop programs to fully expend
interest earnings in the permanent funds for Tobacco Education and
Enforcement, for Children and Public Health, and for Emergency Medical
Services and Trauma Care (an additional 18 FTEs are assumed). It is
assumed that the rural health center would develop programs to fully
expend interest earnings from the Permanent Fund for Rural Health
Facility Capital Improvement (1.5 additional FTEs assumed). It is
assumed the TDH would develop programs to fully expend interest earnings
from the Community Hospital Capital Improvement Fund (additional 1.5
FTEs is assumed). First-year FTEs were reduced to reflect a phase-in
period.
Local Government Impact
The bill would have a positive impact on units of local government.
Estimates assume that local units of government could receive grants
through TDH from several of the new funds. Also, the Permanent Fund for
Rural Health Facility Capital Improvements would have as a primary
beneficiary of grants or loans from the fund local government entities
that own or operate a public hospital located in a rural county.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, BB, KF