Honorable Harold V. Dutton, Jr., Chair, House Committee on Juvenile Justice & Family Issues
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB4607 by White (Relating to the construction of small occupancy facilities by the Texas Juvenile Justice Department.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4607, As Introduced: a negative impact of ($183,028,495) through the biennium ending August 31, 2021.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
($100,000,000)
2021
($83,028,495)
2022
$29,002,060
2023
$29,002,060
2024
$29,002,060
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
2020
($100,000,000)
2021
($83,028,495)
2022
$29,002,060
2023
$29,002,060
2024
$29,002,060
Fiscal Analysis
The bill would require the Texas Juvenile Justice Department (TJJD) to construct small occupancy facilities with the purpose of gradually closing and replacing the large, remote secure facilities operated by TJJD. The small facilities must provide therapeutic and rehabilitative settings, provide housing for no more than 40 youth, and be constructed in conjunction with the regionalization plan described by Section 203.017.
The bill would require TJJD to complete five small facilities by July 1, 2020, and an additional five small facilities by July, 1, 2021. After the completion of each small facility, TJJD must move juveniles committed from the large secure facilities to the small occupancy facilities.
The bill would take effect on September 1, 2019.
Methodology
Based on the cost analysis from TJJD, construction of five small facilities would cost $100.0 million in General Revenue in each fiscal year of the 2020-21 biennium. The estimate assumes that the construction of each 40 bed facility would cost $20.0 million.
Operating costs for each new facility are estimated at $2.6 million for a total of $13.0 million in fiscal year 2021 and $26.0 million in each subsequent year. No operating costs are assumed in fiscal year 2020.
The agency estimates that the closure of one existing secure facility in fiscal year 2021 would provide operating cost savings of $30.0 million. The closure of a second existing facility in fiscal year 2022, combined with the savings realized in fiscal year 2021 would yield an operating costs savings of $55.0 million in fiscal year 2022 and each subsequent fiscal year.
This analysis assumes that TJJD would continue to operate three existing secure facilities to house the remaining population of youth in state custody.
Technology
No estimated technology impact.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.