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Floor Packet Page No. 9                                                     

	
Amend CSHB 1 as follows:                                                     
	(1) On the appropriate page under Article IX add the 
following rider:        
	Sec. _____. Medicaid Appropriations Adjustment.                                
	(a) The Comptroller of Public Accounts is hereby directed to 
reduce appropriations to the Health and Human Services Commission 
and the Texas Department of Health by $524 million in General 
Revenue for the 2004-05 biennium related to Medicaid cost 
containment.  The reductions shall be made to Medicaid 
appropriations of the respective agencies.
	The Health and Human Services Commission shall identify the 
specific strategies from which the reductions will be made in 
annual reports to the Legislative Budget board and the Governor.  
The reports shall be submitted by October 31 of each year of the 
2004-05 biennium.  All reductions shall be documented in the 
agency's Legislative Appropriations Request, Operating Budget and 
adjustments included in reported expenditures for the 2004-05 
biennium to the Seventy-ninth Legislature.
	(b) The Comptroller is directed to increase by a total of $524 
million the appropriations made from the General Revenue Fund under 
this Act to the following:
		(1) Texas Education Agency for the purchase of Texas 
History and Economics textbooks: $33,000,000;
		(2) Texas Education Agency for disciplinary alternative 
education programs: $36,000,000;
		(3) Texas Education Agency for the Optional Extended 
Year Program: $33,000,000;
		(4) Texas Education Agency for the Basic Skills 
Programs for High School Students Program: $50,000,000;
		(5) Texas Education Agency for the Instructional 
Facilities Allotment and the Existing Debt Allotment: 
$115,000,000;
		(6) Texas Education Agency for Regional Education 
Service Centers core services, $10,000,000;
		(7) Teacher Retirement System for TRS-Care: 
$220,000,000; and               
		(8) Teacher Retirement System for minimum effort 
transition assistance component of TRS Active-Care: $27,000,000.
	(2) On page III-19 of the Texas Education Agency's bill 
pattern, amend Rider 65 as follows:
	65. Technical Assistance for Certain School Districts. Out of 
the funds appropriated above in Strategy B.3.1, Teaching Excellence 
and Support, the Commissioner shall distribute an amount not to 
exceed $10 million in 2004 and $10 million in 2005 to small and/or 
rural school districts to assist them in securing professional 
development and other technical assistance services from either a 
Regional Education Service Center or other service provider.  The 
formula for distribution shall be determined by the Commissioner 
and approved by the Legislative Budget Board and the Governor.  In 
addition, out of the funds appropriated above in Strategy B.3.1, 
Teaching Excellence and Support, the Commissioner shall allocate to 
Regional Education Service Centers serving small and rural school 
districts $5 million in each year of the 2004-05 biennium for core 
services in accordance with Texas Education Code § 8.121.