LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 19, 1999
TO: Honorable Robert Junell, Chair, House Committee on
Appropriations
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1676 by Junell (relating to permanent funds for certain
public health purposes), Committee Report 1st House,
Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1676, Committee Report 1st House, Substituted: $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 four new permanent funds. *
**************************************************************************
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 GR from Permanent from Employees *
* Dedicated Permanent Fund for Permanent from FY 1998 *
* Account 5040 Fund for Tobacco Fund for *
* Tobacco Education Children *
* Education and and Public *
* and Enforcement Health - *
* Enforcement - Other Other *
* - Other *
* 1999 $200,000,000 $0$150,000,000 0.0 *
* $(500,000, *
* 000) *
* 2000 0 11,200,000 8,400,000 13.0 *
* (11,200,000) *
* 2001 0 11,200,000 8,400,000 19.5 *
* (11,200,000) *
* 2002 0 11,200,000 8,400,000 19.5 *
* (11,200,000) *
* 2003 0 11,200,000 8,400,000 19.5 *
* (11,200,000) *
* 2004 0 11,200,000 8,400,000 19.5 *
* (11,200,000) *
***********************************************************************
***************************************************************************
*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Revenue Savings/(Cost) Revenue *
* from Permanent Gain/(Loss) from Emergency Gain/(Loss) *
* Fund for from Emergency Medical from Permanent *
* Children and Medical Services and Fund for Rural *
* Health - Other Services and Trauma Care - Health Facility *
* Trauma Care - Other Capital *
* Other Improvement - *
* Other *
* 1999 $0 $100,000,000 $0 $50,000,000 *
* 2000 (8,400,000) 5,600,000 (5,600,000) 2,800,000 *
* 2001 (8,400,000) 5,600,000 (5,600,000) 2,800,000 *
* 2002 (8,400,000) 5,600,000 (5,600,000) 2,800,000 *
* 2003 (8,400,000) 5,600,000 (5,600,000) 2,800,000 *
* 2004 (8,400,000) 5,600,000 (5,600,000) 2,800,000 *
***************************************************************************
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Permanent Fund for Rural Health *
* Facility Capital Improvement - *
* Other *
* 1999 $0 *
* 2000 (2,800,000) *
* 2001 (2,800,000) *
* 2002 (2,800,000) *
* 2003 (2,800,000) *
* 2004 (2,800,000) *
*****************************************************
Fiscal Analysis
Each new fund created by the bill would be a special fund in the State
Treasury outside the General Revenue Fund. Each would consist of money
transferred at the direction of the Legislature, gifts and grants
contributed to the fund, and the interest received from investment of
money in the fund. Funds in each of the new funds could be appropriated
to pay any amount of 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 new fund, the Permanent Fund
for Tobacco Education and Enforcement; interest received from investments
could be appropriated to the Department of Health for programs to reduce
the use of tobacco products.
The new Permanent Fund for Children and Public Health would consist of a
transfer of $150 million; interest received from investment of the fund
could be appropriated to the Department of Health (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 $100 million; interest received from investment of
this fund could be appropriated to the Department of Health for programs
to provide emergency medical services and trauma care.
The bill would transfer $50 million from the General Revenue Fund to the
new Permanent Fund for Rural Health Facility Capital Improvement;
interest received from investment of the fund could be appropriated to
the Center for Rural Health Initiatives. The bill would also expand the
duties of the Center for Rural Health Initiatives to allow the center to
use money appropriated from the fund to make grants or low interest
loans to certain local units of government and entities to make capital
improvements to existing public health facilities, construct new public
health facilities, or purchase capital equipment for public health
facilities.
Methodology
Analysis by the Comptroller of Public Accounts assumes that money to be
transferred to the new funds would come from General Revenue Account
5040-Tobacco Settlement Temporary Hold, which holds payments to the state
from the tobacco companies resulting from the January 1998 court
settlement. The $500 million in transfers would occur in fiscal year
1999.
No further transfers of state money, no gifts or grants from other
sources were assumed. It is assumed there would no significant loss in
General Revenue Fund interest earnings in fiscal year 2000 and no
interest earning loss in 2001 and beyond.
It is assumed that the TDH would develop programs to fully expend the
interest earnings in the Permanent Fund for Tobacco Education and
Enforcement (the addition of 12 Full-Time Equivalent (FTE) positions is
assumed), the Permanent Fund for Children and Public Health (the
addition of three FTEs is assumed), and the Permanent Fund for Emergency
Medical Services and Trauma Care (the addition of three FTEs is
assumed). It is assumed that the Center for Rural Health Initiatives
would develop programs to fully expend the interest earnings from the
Permanent Fund for Rural Health Facility Capital Improvement (the
addition of 1.5 FTEs is assumed). First year FTEs are reduced for a
phase-in period.
Local Government Impact
This bill would have a positive impact to local units of government.
Estimates above assume that local units of government could receive
grants through the Department of Health from several of the new funds
noted above. In addition, the Permanent Fund for Rural Health Facility
Capital Improvements would have as a primary beneficiary of grants or
loans from the fund a municipality, county, municipality and county,
hospital district, or hospital authority that owns or operates a public
hospital located in a rural county.
Source Agencies:
LBB Staff: JK, BB, AZ, KF