LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

March 31, 2005

TO:	Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	SB52 by Nelson (Relating to competitive grant programs for aging and disability services. ), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for SB52, Committee Report 1st House, Substituted: a negative impact of ($150,000) through the biennium ending August 31, 2007.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006	($75,000)
2007	($75,000)
2008	($75,000)
2009	($75,000)
2010	($75,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from GR MATCH FOR MEDICAID 758	Probable Savings/(Cost) from FEDERAL FUNDS 555
2006	($75,000)	($75,000)
2007	($75,000)	($75,000)
2008	($75,000)	($75,000)
2009	($75,000)	($75,000)
2010	($75,000)	($75,000)

Fiscal Analysis

The bill would amend Sections 142, 242, 247, and 252 of the Health and Safety Code and adds Section 161.074, Human Resources Code, to allow use of administrative penalty assessments to be appropriated for use in competitive grant programs under Section 161 to promote innovation in the delivery of aging and disability services and improve the quality of life for individuals receiving those services. Awardees contracts must authorize the Department of Aging and Disability Services (DADS)to recoup grant money for failure to comply with the terms of the contract.

Methodology

DADS estimated that four grants would be made to an institution of higher education working in cooperation with a private entity and would total $150,000 for each fiscal year 2006 through 2010. The DADS estimate assumes the activities for writing or rewriting rules, monitoring expenditures, and enforcement of recipient compliance and the grants are Medicaid eligible and appropriate for a state / federal 50 / 50 match rate. Summary of best practices identified under the program would be required to be posted on the internet.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 539 Department of Aging and Disability Services

LBB Staff:

JOB, CL, KF, ML