LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 7, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2574 by Solis, Jim (Relating to the establishment of a
community health center revolving loan fund program.), As
Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2574, As Engrossed: an impact of $0 through the biennium ending *
* August 31, 2003. *
* *
* 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 *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year NewCommunity Health Center from NewCommunity Health Center *
* Revolving Loan Fund Other Revolving Loan Fund Other *
* 2002 $0 $0 *
* 2003 (4,500,000) 4,500,000 *
* 2004 (4,500,000) 4,500,000 *
* 2005 (4,500,000) 4,500,000 *
* 2006 (4,500,000) 4,500,000 *
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Fiscal Analysis
The bill would establish the community health center revolving loan fund
as a trust fund outside the state treasury. Monies in the fund would
come from money appropriated by the legislature, gifts or grants, and
income from other money in the fund.
The Health and Human Services Commission would be required to contract
with and award funds to a development corporation that would make loans
to community health centers. The commission would be required to develop
the fund program as a revolving loan program that would become
self-funding over the life of the program.
The bill would create a trust fund outside the treasury. Legislative
policy, implemented as Government Code 403.094, consolidated funds
(except those affected by constitutional, federal, or other
restrictions) into the General Revenue Fund as of August 31, 1993 and
eliminated all applicable statutory revenue dedications as of August 31,
1995. The fund included in this bill is subject to funds consolidation
review by the current Legislature.
Methodology
It is assumed a new fund would be established outside the treasury and
that funding for the program would come from gifts, grants, and other
money in the fund. No initial General Revenue startup costs are assumed.
The Health and Human Services Commission states that, according to the
Texas Association of Community Health Centers, the average loan amount
would be $750,000. It is assumed the development corporation would not
recoup a significant amount of revenue from the loans in the first five
years. The Health and Human Services Commission would provide contract
monitoring and oversight functions for the program within existing
resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 324 Texas Department of Human Services, 304
Comptroller of Public Accounts, 529 Health and
Human Services Commission
LBB Staff: JK, HD, KF