TO: | Honorable Tom Craddick, Speaker of the House, House of Representatives |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB2359 by Ritter (Relating to the programs and systems administered by the Employees Retirement System of Texas. ), As Passed 2nd House |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($11,400,000) |
2005 | ($13,100,000) |
2006 | ($15,100,000) |
2007 | ($17,400,000) |
2008 | ($20,000,000) |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GR DEDICATED ACCOUNTS 994 |
Probable Savings/(Cost) from FEDERAL FUNDS 555 |
Probable Savings/(Cost) from STATE HIGHWAY FUND 6 |
---|---|---|---|---|
2004 | ($11,400,000) | ($1,265,457) | ($3,889,695) | ($3,541,806) |
2005 | ($13,100,000) | ($1,455,547) | ($4,473,984) | ($4,073,837) |
2006 | ($15,100,000) | ($1,678,224) | ($5,158,436) | ($4,697,074) |
2007 | ($17,400,000) | ($1,933,488) | ($5,943,053) | ($5,411,515) |
2008 | ($20,000,000) | ($2,221,339) | ($6,827,833) | ($6,217,162) |
Fiscal Year | Probable Savings/(Cost) from OTHER FUNDS 997 |
Probable Savings/(Cost) from OTHER SPECIAL STATE FUNDS 998 |
---|---|---|
2004 | ($2,661,706) | ($541,336) |
2005 | ($3,073,979) | ($622,653) |
2006 | ($3,548,357) | ($717,909) |
2007 | ($4,084,838) | ($827,106) |
2008 | ($4,683,423) | ($950,242) |
Based on the benefit provisions, data, actuarial assumptions, and actuarial funding methods included in the August 31, 2002 actuarial valuations (that are applicable for fiscal year 2003) completed by the ERS actuary for pension matters, the changes in this bill would not have a material effect on the soundness of the ERS, the LECOSRF, or JRS II.
Although this bill is not expected to have a significant fiscal impact on the public safety benefits program, ERS is unable to estimate how many additional claims would be paid out if all volunteer fire-fighting units were eligible for the program.
The provision requiring ERS to add hospitals located within the service area of UGIP health coverage plans would result in an additional biennial cost to General Revenue of $24.5 million. This is based on the assumption that member and state contributions will fund the projected increase in hospital costs, which exceeds the hospital cost trend expected for 2004 and 2005, for the Uniform Group Insurance Program. The amount shown in the Fiscal Impact Table reflects state contribution costs only. For the HealthSelect network, ERS expects to add hospitals in at least three counties, at a cost trend anticipated to be twice the trend estimated for hospital costs in 2004. At present, the HMOs that ERS contracts with have exclusive hospital arrangements. Two of the contracted HMOs (First Care and Scott and White) expect that opening these agreements up to other hospitals in their service areas will increase costs by as much as 15 percent above the estimated 2004 levels.
Source Agencies: | 327 Employees Retirement System
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LBB Staff: | JK, RR, JO, MS, ZS
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