| TO: | Honorable Teel Bivins, Chair, Senate Committee on Finance |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB7 by Heflin (Relating to making supplemental appropriations and making reductions in current appropriations.), As Engrossed |
| Fiscal Year | Appropriation out of GENERAL REVENUE FUND Reductions 1 |
Appropriation out of AVAILABLE SCHOOL FUND 2 |
Appropriation out of STATE TEXTBOOK FUND 3 |
Appropriation out of ECON STABILIZATION FUND 8065 |
|---|---|---|---|---|
| 2003 | ($948,911,000) | ($3,092,000) | ($109,198,000) | $500,000,000 |
| 2004 | ($189,782,000) | ($618,000) | ($21,840,000) | $295,000,000 |
| 2005 | $0 | $0 | $0 | $0 |
| Fiscal Year | Appropriation out of TELECOMMUNICATIONS INFRA FUND 8345 |
Appropriation out of All Affected General Revenue Dedicated Accounts |
|---|---|---|
| 2003 | $142,400,000 | ($79,331,000) |
| 2004 | $0 | ($239,866,000) |
| 2005 | $0 | $0 |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2003 | $1,065,979,000 |
| 2004 | $212,240,000 |
| 2005 | $0 |
| 2006 | $0 |
| 2007 | $0 |
| 2008 | $0 |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from AVAILABLE SCHOOL FUND 2 |
Probable Savings/(Cost) from STATE TEXTBOOK FUND 3 |
|---|---|---|---|---|
| 2003 | $4,778,000 | $948,911,000 | $3,092,000 | $109,198,000 |
| 2004 | $0 | $189,782,000 | $618,000 | $21,840,000 |
| 2005 | $0 | $0 | $0 | $0 |
| 2006 | $0 | $0 | $0 | $0 |
| 2007 | $0 | $0 | $0 | $0 |
| 2008 | $0 | $0 | $0 | $0 |
| Fiscal Year | Probable Revenue Gain/(Loss) from ECON STABILIZATION FUND 8065 |
Probable Savings/(Cost) from ECON STABILIZATION FUND 8065 |
Probable Revenue Gain/(Loss) from Texas Enterprise Fund |
Probable Savings/(Cost) from TELECOMMUNICATIONS INFRA FUND 8345 |
|---|---|---|---|---|
| 2003 | $0 | ($500,000,000) | $0 | ($142,400,000) |
| 2004 | ($14,027,000) | ($295,000,000) | $295,000,000 | $0 |
| 2005 | ($17,210,000) | $0 | $0 | $0 |
| 2006 | ($17,488,000) | $0 | $0 | $0 |
| 2007 | ($17,770,000) | $0 | $0 | $0 |
| 2008 | ($18,056,000) | $0 | $0 | $0 |
| Fiscal Year | Probable Savings/(Cost) from All Affected General Revenue Dedicated Accounts |
|---|---|
| 2003 | $79,331,000 |
| 2004 | $239,866,000 |
| 2005 | $0 |
| 2006 | $0 |
| 2007 | $0 |
| 2008 | $0 |
The bill would make supplemental fiscal 2003 appropriations from the Economic Stabilization Fund. The bill would make appropriations from the Telecommunications Infrastructure Fund for fiscal year 2003. The bill would appropriate $295 million from the Economic Stabilization Fund to the Texas Enterprise Fund when the fund is created, contingent on the passage of legislation.
The bill would appropriate $460.3 million to the Texas Health and Human Services Commission (HHSC) for Medicaid acute care costs provided that: Medicaid expenditures exceeded available revenue due to increased caseloads or a lower federal match rate; and, HHSC had used all revenue available and appropriated to the Medicaid program, including premium credits and vendor drug rebates. The bill would appropriate $26.4 million to HHSC for the Children's Health Insurance Program. The bill would appropriate $6.9 million to the Texas Department of Health for Texas Health Steps and the Medical Transportation Program. The bill would appropriate $6.4 million to the Department of Human Services for disaster assistance payments. The bill would appropriate $26.4 million to the Department of Human Services for the Texas Integrated Eligibility Redesign System and $116 million to the Texas Education Agency for the technology allotment, contingent on the passage of legislation, from the general revenue dedicated telecommunications infrastructure fund.
The bill would require appropriation reductions of $1,273.4 million in General Revenue-Related funds and accounts and $319.1 million in General Revenue-Dedicated accounts.
The bill would require that all receipts from the sale of surplus and other property, under the provisions of Chapter 2175, Government Code, during fiscal year 2003 be deposited to undedicated general revenue.
The bill would take effect immediately upon enactment.
Estimates were based on the provisions of the bill and the Comptroller's 2004-05 Biennial Revenue Estimate. Except for the telecommunications infrastructure savings, which would occur entirely in fiscal 2004, the majority (5/6) of the savings, based on historical spending patterns and for cash flow purposes, would occur in fiscal 2003; the remaining 1/6 would occur in fiscal 2004. Supplemental appropriations from the Economic Stabilization Fund to HHSC and the Department of Health are made in fiscal year 2003, as are appropriations from the Telecommunications Infrastructure Fund. Appropriations to the Texas Enterprise Fund are made in fiscal 2004 based on the assumption that the fund will be created effective 9/1/03.
The revenue loss to the Economic Stabilization Fund in fiscal year 2004 and beyond results from lower interest earnings due to the appropriation and contingent appropriation of $795 million. Any interest earnings deposited to the Texas Enterprise Fund are not reflected above since the level of interest earnings depends on the payout of the Texas Enterprise Fund. The revenue gain to general revenue is based on the Texas Building and Procurement's estimate of the amount that will be deposited to general revenue from fiscal year 2003 proceeds from the sale of surplus property; there will be offsetting losses to various funds used by state agencies in the same amount as the gain to general revenue.
| Source Agencies: | 303 Building and Procurement Commission, 304 Comptroller of Public Accounts, 405 Department of Public Safety, 601 Department of Transportation, 696 Department of Criminal Justice, 802 Parks and Wildlife Department
|
| LBB Staff: | JK, AD, JO, SD, WP
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