Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1621 by Lujan (Relating to a matching grant program for technological enhancements at hospitals providing mental health care services.), Committee Report 1st House, Substituted
The fiscal implications of the bill cannot be determined due to the unknown cost related to the grant funding needs required to enhance technological capabilities of hospitals.
The bill would require the Health and Human Services Commission (HHSC) to establish a matching grant program to enhance the technological capabilities of certain hospitals providing mental health care services in this state. HHSC may use gifts, grants, and donations to award grants. The bill would require selected grantees to contribute toward the cost of the grant at an amount of funding that is equal to 100.0 percent of the amount of the grant provided by HHSC.
The cost estimate does not include HHSC's component of the grant funding required to award the grants to enhance technological capabilities of hospitals. This analysis assumes HHSC would require appropriations to implement the grant program, which are expected to be significant, but the cost for grant funding is unknown at this time as there is no existing program comparable at HHSC to develop a cost estimate for this purpose and the grant applicant award could vary based on the hospital type, location, and purpose of requested grant. Other potential costs are noted below for illustrative purposes.
This analysis assumes HHSC would require an additional 2.0 full-time-equivalents (FTEs) to implement other provisions of the bill, including: 2.0 Program Specialist VI for grant management oversight and assistance. Personnel-related costs, including salaries and travel, are estimated to total $311,604 in General Revenue in fiscal year 2026 and $292,772 in General Revenue in fiscal year 2027.
The bill establishes a matching grant program at HHSC. This analysis assumes HHSC would require an estimated $10,000 in General Revenue per fiscal year to track the grant in the Grant Management System.
Local Government Impact
There may be a significant fiscal impact to hospitals that apply for the grants and are required to provide funds from non-state sources in an amount equal to 100.0 percent of the grant amount from HHSC.