LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 April 11, 2001 TO: Honorable Mike Moncrief, Chair, Senate Committee on Health & Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: SB1246 by Gallegos (Relating to the establishment of a community health center revolving loan fund program.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1246, As Introduced: 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. * ************************************************************************** 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: *************************************************************************** *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 * *************************************************************************** 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