Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB502 by Perry (Relating to peace officers commissioned by the Health and Human Services Commission’s office of inspector general.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB502, Committee Report 1st House, Substituted: a negative impact of ($3,584,686) through the biennium ending August 31, 2027.
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
2026
($2,062,631)
2027
($1,522,055)
2028
($1,522,055)
2029
($1,522,055)
2030
($1,522,055)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from GR Match For Medicaid 758
Probable Savings/(Cost) from Federal Funds 555
2026
($1,823,252)
($239,379)
($240,960)
2027
($1,352,938)
($169,117)
($169,117)
2028
($1,352,938)
($169,117)
($169,117)
2029
($1,352,938)
($169,117)
($169,117)
2030
($1,352,938)
($169,117)
($169,117)
Fiscal Analysis
The bill would require the Health and Human Services Commission's (HHSC) Office of Inspector General (OIG) to compensate peace officers according to Schedule C of the position classification salary schedule included in the General Appropriations Act. The bill would take effect September 1, 2025.
Methodology
According to HHSC, additional funding is needed to provide for increased salaries for current positions at OIG that would be reclassed to the Schedule C Classification Salary Schedule. Based on information provided by the agency compared to the maximum salary permitted by the Schedule C Classification Salary Schedule in Senate Bill 1, as introduced, this analysis assumes an additional $1,691,172 in All Funds is needed each fiscal year to reclassify 37 current positions from the Schedule B Classification Salary Schedule to the Schedule C Classification Salary Schedule, including employee benefits and related salary pay.
Technology
The total technology cost is estimated to be $612,419 in All Funds in fiscal year 2026. Costs are primarily related to one-time upgrades to the Centralized Accounting and Payroll/Personnel System (CAPPS).
Local Government Impact
No significant fiscal implication to units of local government is anticipated.