LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 7, 2003

TO:
Honorable Talmadge Heflin, Chair, House Committee on Appropriations
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB7 by Heflin (Relating to making supplemental appropriations and making reductions in current appropriations.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB7, As Introduced: a positive impact of $723,254,000 through the biennium ending August 31, 2005.



Fiscal Year Appropriation out of
GENERAL REVENUE FUND Reductions
1 		Appropriation out of
GENERAL REVENUE FUND Increases
1 		Appropriation out of
AVAILABLE SCHOOL FUND
2 		Appropriation out of
STATE TEXTBOOK FUND
3
2003 ($752,387,000) $198,600,000 ($3,242,000) ($12,583,000)
2004 ($150,477,000) $0 ($648,000) ($2,517,000)
2005 $0 $0 $0 $0

Fiscal Year Appropriation out of
All Affected General Revenue Dedicated Accounts
2003 ($107,712,000)
2004 ($245,542,000)
2005 $0



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2003 $569,612,000
2004 $153,642,000
2005 $0


Fiscal Analysis

The bill would make supplemental fiscal 2003 appropriations using the savings from fiscal 2003 appropriation reductions.

The bill would appropriate $165.3 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 require appropriation reductions of $921.9 million in General Revenue-Related funds and accounts and $353.3 million in General Revenue-Dedicated accounts.

The bill would take effect immediately upon enactment.


Methodology

Estimates were based on the provisions of the bill and the Comptroller's 2004-05 Biennial Revenue Estimate. Overall, this bill would achieve $1.077 billion in net certifiable savings after inclusion of the supplemental appropriations. 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.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JK, JO, SD, WP, AD