LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 5, 1999
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
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),
Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2641, Committee Report 1st House, Substituted: positive impact *
* of $470,000 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 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 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 $(15,000) *
* 2001 485,000 *
* 2002 2,385,000 *
* 2003 2,385,000 *
* 2004 2,385,000 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable (Cost) Probable Probable (Cost) Probable *
* Year from General Savings from from Federal Savings from *
* Revenue Fund General Revenue Funds Federal Funds *
* 0001 Fund 0555 0555 *
* 0001 *
* 2000 $(65,000) $50,000 $(65,000) $50,000 *
* 2001 (65,000) 550,000 (65,000) 550,000 *
* 2002 (65,000) 2,450,000 (65,000) 2,450,000 *
* 2003 (65,000) 2,450,000 (65,000) 2,450,000 *
* 2004 (65,000) 2,450,000 (65,000) 2,450,000 *
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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 two advisory committees: one to assist local
entities with federal funding efforts and coordination of services;
another to coordinate transportation services. Reimbursement for travel
and other committee related expenses must be authorized in the General
Appropriations Act.
Methodology
Total costs of $130,000 would be required to implement the bill as
estimated by the Sunset Advisory Commission. The costs relate to
provisions that would require the Health and Human Services Commission to
employ a medical director.
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 would be
derived from existing resources and staffing within HHS agencies. 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
LBB Staff: JK, TP, AZ