LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 29, 1999
TO: Honorable Judith Zaffirini, Chair, Senate Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1292 by Zaffirini (Relating to monitoring the
financial condition of certain nursing facilities
licensed by the Texas Department of Human Services.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1292, As Introduced: positive impact of $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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 (1,155,668) *
* 2003 (1,155,668) *
* 2004 (1,155,668) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund Federal Funds *
* 0001 0555 *
* 2000 $0 $0 *
* 2001 0 0 *
* 2002 (1,155,668) (1,807,583) *
* 2003 (1,155,668) (1,807,583) *
* 2004 (1,155,668) (1,807,583) *
***************************************************************************
Fiscal Analysis
The bill would add Section 242.074 to the Health and Safety Code,
requiring institutions licensed under Chapter 242 of the Health and
Safety Code to submit to the Department of Human Services an audited
financial statement each year. An independent certified public
accountant must certify the financial statement.
Methodology
Assumptions:
1) Preparing and certifying an annual financial statement will cost
$10,000 per year for each independent or primary facility. There will
be 323 independent or primary facilities per year.
2) Preparing and certifying an annual financial statement will cost
$1,000 per year for each secondary facility. There will be 721 secondary
facilities per year.
3) Three quarters of these costs qualify as Medicaid expenses.
4) Medicaid expenses associated with preparing and certifying financial
statements will be included in the nursing facility reimbursement rate
two years after the expense is incurred.
5) Approximately 39 percent of the costs will be paid with general
revenue, and 61 percent with matching federal funds.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TP, PP