TO: | Honorable Bill Ratliff, Chair, Senate Committee on State Affairs |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB3456 by Heflin (Relating to health benefit plans under the Texas Employees Group Benefits Act.), As Engrossed |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $44,611,000 |
2005 | $44,611,000 |
2006 | $44,611,000 |
2007 | $44,611,000 |
2008 | $44,611,000 |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GR DEDICATED ACCOUNTS 994 |
Probable Savings/(Cost) from OTHER SPECIAL STATE FUNDS 998 |
Probable Savings/(Cost) from STATE HIGHWAY FUND 6 |
---|---|---|---|---|
2004 | $44,611,000 | $2,926,564 | $292,314 | $11,729,099 |
2005 | $44,611,000 | $2,926,564 | $292,314 | $11,729,099 |
2006 | $44,611,000 | $2,926,564 | $292,314 | $11,729,099 |
2007 | $44,611,000 | $2,926,564 | $292,314 | $11,729,099 |
2008 | $44,611,000 | $2,926,564 | $292,314 | $11,729,099 |
Fiscal Year | Probable Savings/(Cost) from FEDERAL FUNDS 555 |
---|---|
2004 | $13,482,983 |
2005 | $13,519,523 |
2006 | $13,519,523 |
2007 | $13,519,523 |
2008 | $14,751,438 |
This bill would implement recommendation GG9 from the Comptroller's e-Texas report, Limited Government, Unlimited Opportunity.
According to the Employees Retirement System, a 90-day waiting period for new hires would generate $34.9 million in General Revenue savings and $57.1 million in savings in All Funds during the 2004-05 biennium, and $54.3 million in General Revenue savings and $89.1 million in savings in All Funds during the 2004-05 biennium from new and increased co-pays. Total biennial savings in All Funds are estimated to be $146.2 million, and $89.2 million in General Revenue. (See Fiscal Impact table.)
The estimate related to the 90-day waiting period is highly dependent on the number of new hires during the 2004-05 biennium. Any vacancy freezes and reductions-in-force implemented by state agencies to comply with the 7 percent reduction in fiscal year 2003 and to stay within available revenue in the 2004-05 biennium will significantly reduce these estimated cost savings.
Source Agencies: | 304 Comptroller of Public Accounts, 327 Employees Retirement System, 454 Department of Insurance
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LBB Staff: | JK, RR, MS, ZS
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