LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

March 25, 2007

TO:	Honorable David Swinford, Chair, House Committee on State Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB1842 by Strama (Relating to the provision of certain services and information related to unintended pregnancies and sexually transmitted diseases.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1842, As Introduced: a negative impact of ($1,724,849) through the biennium ending August 31, 2009.

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
2008	($574,648)
2009	($1,150,201)
2010	($1,150,201)
2011	($1,150,201)
2012	($1,150,201)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from GR MATCH FOR MEDICAID 758	Probable (Cost) from FEDERAL FUNDS 555
2008	($574,648)	($574,648)
2009	($1,150,201)	($1,150,201)
2010	($1,150,201)	($1,150,201)
2011	($1,150,201)	($1,150,201)
2012	($1,150,201)	($1,150,201)

Fiscal Year	Change in Number of State Employees from FY 2007
2008	2.0
2009	4.0
2010	4.0
2011	4.0
2012	4.0

Fiscal Analysis

The bill would require the Health and Human Services Commission (HHSC) to provide funding to conduct a comprehensive marketing and outreach campaign to reduce unintended pregnancies and sexually transmitted diseases, to the extent money is available for this purpose. The campaign would include print and broadcast media, Internet websites, and a toll-free telephone number. The bill would prohibit the Legislative Budget Board, the Governor, or HHSC from reducing certain services below the September 1, 2007 level in order to provide funding for the campaign.

This fiscal assessment assumes that the federal government would contribute funding at an administrative or 50/50 match. If should funds were not approved, the cost to the General Revenue Fund would double.

Methodology

Based on HHSC estimates, an annual cost of $2,127,000 in All Funds, including $1,063,500 in General Revenue, is assumed for the comprehensive marketing and outreach campaign in fiscal year 2009 and each subsequent fiscal year. Costs of $1,063,500 in All Funds, including $531,750 in General Revenue, are assumed in fiscal year 2008 due to assuming time for start-up. Estimates assume costs for television and radio marketing, printed materials and advertisements, broadcast media, and design and distribution. It is assumed existing Internet websites could be used for outreach. Costs are based on CHIP outreach and marketing costs.

Based on HHSC estimates, $173,402 in All Funds, including $86,701 in General Revenue, is assumed for salaries and related costs for 4 additional Full-Time-Equivalent (FTE) positions in fiscal year 2009 and each subsequent fiscal year. HHSC indicates 2 FTEs would staff the 2-1-1 hotline to respond to inquiries resulting from the outreach and marketing campaign and 2 FTEs would process applications for services resulting from the campaign. Estimates for fiscal year 2008 assume 2 FTEs at a cost of $86,701 in All Funds, with $43,351 in General Revenue, due to assuming time for start-up.

Technology

Estimates above include $1,810 in All Funds in fiscal year 2008 and $3,620 in All Funds in fiscal year 2009 and each subsequent fiscal year for seat management.

Local Government Impact

The bill would require school districts to provide written notification to parents regarding human sexuality instruction and would amend requirements related to course materials and instruction relating to human sexuality. It is assumed these requirements would not have a significant fiscal impact on school districts.

Source Agencies:

301 Office of the Governor, 529 Health and Human Services Commission, 537 State Health Services, Department of, 701 Central Education Agency

LBB Staff:

JOB, KJG, PP, SSt