LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 1, 2009

TO:	Honorable Leticia Van de Putte, Chair, Senate Committee on Veteran Affairs & Military Installations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1325 by Nelson (Relating to the creation of a mental health intervention program for military veterans.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB1325, As Introduced: a negative impact of ($3,879,328) 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	($2,053,778)
2011	($1,825,550)
2012	($1,830,074)
2013	($1,834,754)
2014	($1,839,590)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from General Revenue Fund 1
2010	($2,053,778)
2011	($1,825,550)
2012	($1,830,074)
2013	($1,834,754)
2014	($1,839,590)

Fiscal Year	Change in Number of State Employees from FY 2009
2010	1.0
2011	1.0
2012	1.0
2013	1.0
2014	1.0

Fiscal Analysis

The bill would require the Department of State Health Services (DSHS) to develop a mental health intervention program for veterans. The bill would require that the program provide for peer-to-peer counseling and be developed by January 1, 2010.

Methodology

DSHS estimates they will need one full-time equivalent to coordinate a workgroup and lead the development and implementation of the program and to monitor the program once implemented at an estimated cost of $0.1 million each fiscal year.

DSHS indicates they would contract with local mental health authorities (LMHAs) for provision of services. They assume each of the 37 LMHAs and the NorthSTAR program would each require funding for one peer-to-peer service coordinator at an estimated cost of $2.0 million in fiscal year 2010 and $1.8 million in fiscal year 2011 and subsequent years.

DSHS indicates the cost of services provided by the LMHAs cannot be estimated. DSHS estimates there are 1.7 million veterans residing in Texas. The number of veterans who might seek services through the program cannot be determined. Providing services to even a small percentage of the veterans in the state could have a substantial cost. Type and duration of services are also unknown and variations in these factors could result in substantially different costs.

Local Government Impact

There could be substantial costs to LMHAs to provide contracted services to veterans. It is assumed that any cost would be reimbursed by DSHS.

Source Agencies:

537 State Health Services, Department of

LBB Staff:

JOB, KK, LR, JJ