LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 24, 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.),
As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2641, As Introduced: 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.
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 *
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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 and information systems of health and human
services (HHS) agencies. In addition, the bill would require the
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 a local government advisory committee to assist
local entities with federal funding efforts and coordination of
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 contractors. The
regional consolidation of HHS agencies' support services is anticipated
by SAC to reduce expenditures by $400,000 each year beginning in 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 the 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:
LBB Staff: JK, TP, AZ