LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 4, 1999
TO: Honorable Judith Zaffirini, Chair, Senate Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2641 by Gray (Relating to the continuation and
functions of the Health and Human Services Commission.),
As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2641, As Engrossed: positive impact of $284,080 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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The bill would continue the Health and Human Services Commission (HHSC)
and establish a new sunset date of September 1, 2007. Among other
things, the bill would add the Health Care Information Council to
agencies under the jurisdiction of HHSC, transfer the Empowerment Zone
and Enterprise Communities Program from HHSC to the Department of
Economic Development, and create a Legislative Oversight Committee for
the 2000-01 biennium.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(200,920) *
* 2001 485,000 *
* 2002 2,385,000 *
* 2003 2,385,000 *
* 2004 2,385,000 *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year (Cost) from Savings Cost from Savings Number of *
* General from Federal from State *
* Revenue General Funds Federal Employees *
* Fund Revenue 0555 Funds from FY 1999 *
* 0001 Fund 0555 *
* 0001 *
* 2000 $(250,920) $50,000 $(65,000) $50,000 2.4 *
* 2001 (65,000) 550,000 (65,000) 550,000 0.0 *
* 2002 (65,000) 2,450,000 (65,000) 2,450,000 0.0 *
* 2003 (65,000) 2,450,000 (65,000) 2,450,000 0.0 *
* 2004 (65,000) 2,450,000 (65,000) 2,450,000 0.0 *
***********************************************************************
Fiscal Analysis
The bill would require the Health and Human Services Commission to
directly manage business systems of health and human services agencies.
In addition, the bill would require consolidation of regional support
services for HHS agencies. The Sunset Advisory Commission (SAC) reports
that these efforts will reduce duplicative efforts in existing management
systems. SAC estimates that other bill provisions would assign
management control over key agency operations and result in savings to
the State.
The bill would create three advisory committees: one to assist local
entities with federal funding efforts and coordination of services;
another to coordinate transportation services; and a third relating to
information resource management. Reimbursement for travel and other
committee related expenses must be authorized in the General
Appropriations Act.
Methodology
Costs assume $130,000 would be required annually for Health and Human
Services Commission to employ a medical director. In addition, the State
Auditor's Office reports a cost of $185,920 and 2.4 FTEs in fiscal year
2000 to assess the procurement and contracting practices in the HHS
agencies.
Sunset Advisory Commission estimates savings of $100,000 in fiscal year
2000 and $500,000 each subsequent year relating to the cross-agency
coordination of on-site and desk auditing of HHS agency subcontractors.
The regional coordination of HHS agencies' support services is
anticipated by SAC to reduce expenditures by $400,000 each year beginning
with fiscal year 2001. The consolidation of information technology
planning and management is estimated by SAC to reduce expenditures by
$200,000 in fiscal year 2001 and $1.0 million each subsequent year.
Annual savings after the 2000-01 biennium as estimated by the Sunset
Advisory Commission correspond to changes in rate setting ($1.0 million)
and Medicaid operations and contracting ($2.0 million). The SAC projects
that $10.0 million in additional federal revenue annually will be gained
through the required management of federal funds by HHSC beginning in
fiscal year 2002.
Sunset Advisory Commission reports that staff and other resources
necessary for HHSC to perform the duties required by the bill, such as
reviews, reports and studies, would be derived from existing resources
and staffing within HHS agenices. SAC notes that consolidation of
administrative functions should lead to a net reduction in FTEs.
Local Government Impact
The Sunset Advisory Commission anticipates that an increase in federal
funds will be available to local entities due to the creation and
efforts of a local government advisory committee.
Source Agencies: 116 Sunset Advisory Commission, 308 State
Auditor's Office, 529 Health and Human Services
Commission
LBB Staff: JK, TP, AZ