LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 17, 2001 TO: Honorable Bill Ratliff, Lieutenant Governor, Senate FROM: John Keel, Director, Legislative Budget Board IN RE: SB1475 by Duncan (Relating to the abolition of the Children's Trust Fund of Texas Council and to the transfer of its powers and duties to the Department of Protective and Regulatory Services.), As Passed 2nd House ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1475, As Passed 2nd House: 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 Revenue Gain/(Loss) Probable Revenue Gain/(Loss) * * Year from Children's Trust Fund 0987 from GR Account--Child Abuse * * and Neglect Prevention Trust * * Fund Account * * 2002 $(30,600,000) $30,600,000 * * 2003 (1,600,000) 1,600,000 * * 2004 (1,600,000) 1,600,000 * * 2005 (1,600,000) 1,600,000 * * 2006 (1,600,000) 1,600,000 * *************************************************************************** Fiscal Analysis The bill would amend Chapter 40 and repeal Chapter 74 of the Human Resources Code to abolish the Children's Trust Fund of Texas Council (CTFC) and transfer its powers and duties to the Department of Protective and Regulatory Services (PRS). The bill would rename GR Account 0541 -- Children's Trust Fund of Texas Council Operating; and abolish the Children's Trust Fund 0987. The bill would establish a GR Account -- Child Abuse and Neglect Prevention Trust Fund. PRS would be authorized to transfer money between the new account and the operating fund account at any time, but the bill would limit the transfers in a fiscal year to the amount appropriated to the operating fund account for that fiscal year. The bill would create a new, unnamed fund to receive contributions for specific child abuse and neglect prevention or prevention or early intervention purposes. The bill would allow PRS to renew funding during the biennium ending August 31, 2003, to entities receiving funding in FY 2001 from CTFC without the need for competitive procurement. The bill would take effect September 1, 2001. Methodology The Comptroller assumes that unexpended and unobligated balances would be transferred from GR Account 0541 to the operating fund account and from Fund 0987 to the trust fund account. The comptroller also assumes that the authority to expend money from the newly created accounts would transfer to PRS. The Comptroller assumes that the estimated balance for Fund 0987 of $29 million would be transferred to the newly created trust fund account. In addition, revenues, less transfers to the operating fund account, that previously were deposited in Fund 0987 would be deposited in the trust fund account. Estimates of these net revenues were based on the historical deposits and transfers and the proposed appropriation contained in the House version of Senate Bill 1. The bill also would create a new unnamed fund to receive contributions for specific program purposes. The Comptroller assumes that this fund would be a dedicated account in Fund 001. Since this would be a new account, no balance would transfer and the amount of contributions cannot be estimated. The Comptroller notes that the bill would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either within or outside of the Treasury, or create a dedicated revenue source. Government Code 403.094 consolidated special 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. Each subsequent Legislature has reviewed bills that affect funds consolidation. The fund, account or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature. According to PRS, any additional reporting and budget tracking responsibilities created by the bill would be absorbed using existing staff. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, HD, KF, NM