LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 85TH LEGISLATURE 1st CALLED SESSION - 2017
 
July 24, 2017

TO:
Honorable John Zerwas, Chair, House Committee on Appropriations
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB20 by Ashby (Relating to an appropriation of money from the economic stabilization fund to decrease health insurance premiums and deductibles for certain health benefit plans administered by the Teacher Retirement System of Texas.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB20, As Introduced: an impact of $0 through the biennium ending August 31, 2019.



Fiscal Year Appropriation out of
Economic Stabilization Fund
599
2017 $150,000,000
2018 $0
2019 $0



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2017 $0
2018 $0
2019 $0




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2017 $0
2018 $0
2019 $0
2020 $0
2021 $0
2022 $0




Fiscal Year Probable Savings/(Cost) from
Economic Stabilization Fund
599
Probable Revenue (Loss) from
Economic Stabilization Fund
599
2017 ($150,000,000) ($100,000)
2018 $0 ($1,963,000)
2019 $0 ($2,760,000)
2020 $0 ($2,810,000)
2021 $0 ($2,861,000)
2022 $0 ($2,913,000)

Fiscal Analysis

The bill would appropriate $150.0 million from the Economic Stabilization Fund to the retired school employees group insurance fund established under Chapter 1575 of the Texas Insurance Code (TRS-Care).  The bill specifies that the appropriation shall be used only to decrease premiums and deductibles for the 2018 and 2019 plan years for members enrolled in the high deductible health plan for non-Medicare retirees established under Section 1575.158 of the Insurance Code, as amended by HB 3976, 85th Legislature, Regular Session, 2017.

The appropriation from the Economic Stabilization Fund prescribed by the bill would take effect only if it receives a vote of two-thirds of the members present in each chamber of the Legislature, as provided by Section 49-g (m), Article III, Texas Constitution.

Methodology

This analysis assumes that the funds appropriated by the bill would be one-time funding for the 2018-19 biennium only and would not be used to offset or increase the statutory state contribution rate established in Chapter 1575 of the Texas Insurance Code.

It is anticipated that the appropriation would result in a loss of investment income revenue for the Economic Stabilization Fund of approximately $100,000 in fiscal year 2017 and $2.0 million in fiscal year 2018, rising gradually thereafter to a probable loss of $2.9 million of investment revenue in fiscal year 2022, based on information provided by the Comptroller of Public Accounts.  Similar fiscal implications would continue after fiscal year 2022.

As an appropriations bill, this legislation is subject to certification by the Comptroller of Public Accounts.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 323 Teacher Retirement System
LBB Staff:
UP, KK, AM, TSI