LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 6, 2009

TO:	Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB492 by Zerwas (Relating to the expansion of faith- and community-based health and human services and social services initiatives.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB492, As Engrossed: a negative impact of ($1,000,000) through the biennium ending August 31, 2011.

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
2010	($500,000)
2011	($500,000)
2012	($500,000)
2013	($500,000)
2014	($500,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable (Cost) from New GR-Dedicated: Renewing Our Communities Account
2010	($500,000)	($700,000)
2011	($500,000)	($700,000)
2012	($500,000)	($700,000)
2013	($500,000)	($700,000)
2014	($500,000)	($700,000)

Fiscal Analysis

Section one of the bill would require an interagency coordinating group of governmental liaisons for faith and community-based organizations.   The section establishes the Renewing Our Communities Account (ROCA) as dedicated account in the General Revenue Fund that may only be appropriated to the Health and Human Services Commission (HHSC) for certain purposes identified in the bill.  A contract or grant would be awarded to the administrative entity designated (in accordance with the National and Community Service Act of 1990) as the State Commission on National and Community Service that would administer funds appropriated from the account. 

The bill would require creation of a task force on strengthening nonprofit capacity.  It would hold public meetings using the ROCA for expenditures, to the extent funds are available.  The bill creates the Renewing Our Communities Account Advisory Committee to monitor and make suggestions concerning the account.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in the bill would be subject to funds consolidation review by the current Legislature.

The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house; if it does not, the bill would take effect on September 1, 2009.

Methodology

The grant-making requirement of section one is assumed to require funding from the new account established by the bill, as well as from possible gifts, grants and donations.  It is assumed that donations deposited to the ROCA account would be expended (if appropriated).  For purposes of this cost estimate, it is assumed that $500,000 per year would be appropriated from General Revenue and then transferred to the new account.  Additionally, it is assumed that the account would receive $200,000 per year in gifts, grants and donations, for a total of $700,000 per year in anticipated expenditures from the ROCA account.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

301 Office of the Governor, 304 Comptroller of Public Accounts, 529 Health and Human Services Commission

LBB Staff:

JOB, CL, PP, MB, JF, SD