LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION

May 22, 2015

TO:	Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB2 by Otto (relating to making supplemental appropriations and giving direction and adjustment authority regarding appropriations.), Committee Report 2nd House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB2, Committee Report 2nd House, Substituted: a negative impact of ($289,804,696) through the biennium ending August 31, 2017.

Appropriations:

Fiscal Year	Appropriation out of General Revenue Fund 1	Appropriation out of Federal Funds 555
2015	$299,802,696	$264,785,537
2016	$0
2017

General Revenue-Related Funds, Three-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2015	($299,802,696)
2016	$0
2017	$0

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2015	($289,804,696)
2016	$0
2017	$0
2018	$0
2019	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable Savings/(Cost) from Federal Funds 555	Probable Revenue Gain from General Revenue Fund 1	Change in Number of State Employees from FY 2014
2015	($299,804,696)	($264,785,537)	$10,000,000	19.5
2016	$0
2017
2018
2019

Fiscal Analysis

*

Net General Revenue-related appropriations total an increase of $299,802,696 in fiscal year 2015.
		FY 2015
General Revenue-related Appropriation Reductions:
	Texas Public Finance Authority - Bond Debt Service Payments	$        (25,000,000)
	Family and Protective Services - Foster Care Payments MOF Swap	$        (33,400,000)
	Health and Human Services Commission - TANF Surplus in Cash Assistance Grants (GR MOE for TANF)	$        (50,000,000)
	Texas Education Agency - Foundation School Program, Account No. 193	$      (710,000,000)
	Higher Education Coordinating Board - Baylor College of Medicine Surplus	$             (221,152)
	Water Development Board - Debt Service Savings	$          (5,932,518)
	Texas Department of Transportation - Debt Service Savings relating to Proposition 12 Bonds	$        (22,100,000)
General Revenue-related Appropriation Increases:
	Comptroller of Public Accounts - Texas Tomorrow Fund	$         87,671,644
	Facilities Commission - Emergency Maintenance at State Owned Buildings	$           9,538,658
	Facilities Commission - Critical Operations and Health & Safety Maintenance (TSD)	$         10,952,024
	Facilities Commission - Capital Complex Master Plan	$              500,000
	Facilities Commission - DMV Headquarters	$              500,000
	Health and Human Services Commission - Medicaid	$         75,544,927
	Health and Human Services Commission - Medicaid - Health Insurance Provider Fee and Federal Income Tax	$         79,685,024
	Teacher Retirement System - TRS Care	$       768,100,754
	University of Texas at Austin - Economic Geology	$           4,471,800
	Lamar State College -Orange - Damages Associated with Hurricane Ike	$           1,077,557
	UTMB - Galveston - Bio-Containment Critical Care Unit	$           8,200,000
	Lee College - Prison Higher Education	$              775,000
	District Courts - Comptroller's Judiciary Section - Trial Costs for Erath County	$              500,000
	Department of Criminal Justice - Correctional Managed Health Care (CMHC)	$         42,500,000
	Texas Military Department - Border Security	$           9,000,000
	Department of Public Safety - Border Security	$         29,253,684
	Animal Health Commission - Cattle Fever Tick Quarantine	$              601,111
	Cattle Tuberculosis	$              188,736
	Parks and Wildlife Department - Contingency appropriation for the San Jacinto Lawsuit Settlement	$         10,000,000
	Parks and Wildlife Department - Border Security	$           2,095,447
	Department of Insurance - Health Texas  and other agency operations	$           5,300,000

*

Net Federal Funds appropriations total an increase of $264,785,537 for fiscal year 2015 as follows:
		FY 2015
Federal Funds Appropriation Increases:
	Family and Protective Services - Foster Care Payments	$         43,671,644
	Health and Human Services Commission - Medicaid	$       104,538,332
	Health and Human Services Commission - Medicaid - Health Insurance provider Fee and Federal Income Tax	$       113,570,204
	Health and Human Services Commission - TANF Cash Assistance Grants	$           3,005,357

*

Appropriations Authority Changes
Transfers within the Health and Human Services Commission (HHSC) to address the Medicaid shortfall:
	$101,812,581	in General Revenue from Integrated Eligibility and Enrollment for Medicaid
	$    2,722,670	in General Revenue from the Office of the Inspector General
	$    2,412,362	in General Revenue from TANF Cash Assistance
Transfers from the Department of Aging and Disability to HHSC to address the Medicaid shortfall:
	$  98,762,408	in General Revenue from Habilitation Services
	$  31,151,738	in General Revenue from Long-term Care Services and Supports
Transfers from State Health Services to HHSC to address the Medicaid shortfall:
	$    5,900,000	in General Revenue from Community Primary Care Services
	$    1,300,000	in General Revenue from Community Mental Health Crisis Services
UT Austin - Center for Economic Geology - Establishment of a technical advisory committee
Veterans Commission - Increase of 19.5 Full-Time-Equivalent Positions (FTEs) for FY 2015.
Department of Aging and Disability - Capital Budget Authority for BIP-Secure Web Portal
Department of Aging and Disability - Capital Budget Authority for Microsoft Enterprise Subscription Agreement Renewal
Department of Family and Protective Services - Transfers to Address Certain Shortfalls
Department of State Health Services - Transfers to Address Certain Shortfalls
Health and Human Services Commission - Capital Budget Authority for Secure Mobile Infrastructure
Health and Human Services Commission -- Reporting requirement relating to capitation payments for the  Medicaid  appropriations for the Health Insurance Providers Fee and Federal Income Tax payments.
Midland College - Grant Agreement with Permian Basin Petroleum Museum
Department of Criminal Justice - Certain Transfers to address CMHC shortfall
Department of Public Safety - Use of Funds for Recruit Schools
Department of Public Safety - Limitation of Transfer Authority
Department of Transportation - Unexpended Balance Authority for Road Repairs to Energy Sectors and County Transportation Infrastructure Grants

Impact on Balances and Revenue

General Revenue Fund 001

The bill would increase General Revenue balances (Fund 001) in FY 2015 by $10 million which would be deposited to the General Revenue Fund from proceeds recovered from the final judgment  in the Harris County v. Waste Management of Texas, Inc. 

Methodology

The amounts identified above represent changes to previously authorized amounts and purposes for the state fiscal year ending August 31, 2015.

Technology

The bill would provide authority to amend capital budgets for the Department of Aging and Disability Services (BIP-Secure Web Portal project and the Microsoft Enterprise Subscription Agreement Renewal project) and the Health and Human Services Commission (Secure Mobile Infrastructure project).

Local Government Impact

The reduction in Foundation School Program (FSP appropriations in fiscal year 2015 will have no local fiscal impact.  School districts and charter schools generate FSP entitlement independent of the appropriations process; FSP appropriations are estimates of the amount necessary to fund entitlement in the coming biennium.  2014-15 appropriations are now estimated to be $710 million in General Revenue funds more than the amount necessary to fund 2014-15 entitlement, primarily due to larger than projected settle-up savings and updated budget drivers, including district property values and student counts. 

The Comptroller's Judiciary Section would be appropriated $500,000 in General Revenue funds for the expenses incurred by Erath County related to the Chris Kyle murder trial.  The appropriations would be for a two year period beginning in FY 2015.

The Parks and Wildlife Department would be appropriated up to $10 million from proceeds recovered from the final judgment in the Harris County v. Waste Management of Texas, Inc., for a two-year period beginning in fiscal year 2015 to transfer to Harris County to mitigate the effects of environmental contamination as specified in the bill. 

Source Agencies:

LBB Staff:

UP, KK, MS