HBA-CCH C.S.H.B. 1333 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1333 By: Junell Appropriations 3/28/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Each legislative session, state agencies project the costs of fulfilling their functions and for providing important services. The greater portion of the state's general revenue budget is based on projected public school enrollment, caseloads in the Medicaid program, and the prison population. Actual caseloads in Medicaid and the prison population have exceeded projections made during the 76th legislative session and several other agencies need additional funding as well. C.S.H.B. 1333 transfers unencumbered amounts to provide emergency appropriations to the Texas Department of Health, Texas Department of Criminal Justice, and the State Office of Risk Management. The bill also provides additional funding to other state agencies. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 1333 transfers unencumbered amounts that were appropriated in the General Appropriations Act by the 76th Legislature from the general revenue fund to certain agencies totalling $333,887,000 to the Texas Department of Health (TDH) for the state Medicaid program in the following amounts: _$154,700,000 from various agencies identified by the comptroller of public accounts; _$10,200,000 from the Texas Education Agency (TEA) for student success; _$100,000,000 from TEA for the Foundation School Program; _$2,000,000 from the Texas Public Finance Authority (TPFA), appropriated in Article II of the General Appropriations Act; _$14,000,000 from TPFA for bond debt service, appropriated in Article V of the General Appropriations Act; _$2,000,000 from the State Soil and Water Conservation Board (SSWCB) for financial and technical assistance; _$400,000 from SSWCB for pollution abatements; _$500,000 from the Texas Historical Commission (THC) for archeological protection; _$500,000 from THC for the evaluation and interpretation of resources; _$478,000 from The University of Texas at Austin for the TxPharm program; _$549,000 from Texas Southern University for the TxPharm program; _$460,000 from the University of Houston for the TxPharm program; _$39,000,000 from the Texas Higher Education Coordinating Board for Texas Excellence access and success grants; _$1,100,000 from TEA for support programs; and _$8,000,000 from TEA for improving educator performance. C.S.H.B. 1333 appropriates $99,000,000 from the suspense account of the comptroller of public accounts to TDH for the purpose of providing Medicaid services contingent upon the passage of other proposed legislation. The bill also provides that the unencumbered amount of $47,500,000 from TEA is transferred to TDH for the purpose of the Medicaid program. The bill provides that the above appropriations may be expended only for the specified purposes and only if Medicaid expenditures exceed available revenue because of changes in caseloads and costs or a lower federal match rate, and TDH has used all revenue available to the Medicaid program, including but not limited to premium credits and vendor drug rebates. The bill also provides that the unexpended balance of funds at the end of the state fiscal year that ends August 31, 2001 is appropriated to TDH for the state fiscal year beginning September 1, 2001 for the purpose of the Medicaid program, but may only be expended with the approval of the Legislative Budget Board (SECTION 1). C.S.H.B. 1333 transfers a total of $66,519,000 in unencumbered amounts from various state agencies to the Texas Department of Criminal Justice (TDCJ). $30,819,000 of which is for the purpose of providing for expenditures relating to the operation of additional prison capacity and to contracts with counties for additional temporary capacity. The bill appropriates the remaining $35,700,000 for the purpose of providing for expenditures relating to correctional officer, sergeant, and food service and laundry manager career ladder salary adjustments. The bill provides that the following amounts are transferred to TDCJ: _$33,377,000 from various agencies identified by the comptroller of public accounts; _$1,400,000 from the Texas Natural Resource Conservation Commission (TNRCC) for water resource assessment and planning; _$1,000,000 from the Texas Youth Commission for various purposes; _$1,000,000 from the Office of Court Administration for the Judicial Committee on Information Technology; _$12,800,000 from the Department of Information Resource for Year 2000 Conversion; _$6,500,000 from the State Preservation Board for various purposes; _$5,000,000 from the Comptroller of Public Accounts, Fiscal Programs for Tort Claims & Federal Court Judgments; and _$5,442,000 from the Texas Natural Resource Conservation Commission for various purposes. The bill appropriates $2,781,000 from the criminal justice planning account and $41,000,000 from the fugitive apprehension account to TDCJ for the purpose of providing for expenditures relating to additional prison capacity and contracts with counties for additional temporary capacity (SECTION 2). The bill appropriates the unencumbered amount of $13,000,000 from the Office of the Governor to the State Office of Risk Management from the general revenue fund for the purpose of paying higher than expected workers' compensation claims (SECTION 3). The bill appropriates $5,000,000 from the comprehensive rehabilitation account to the Texas Rehabilitation Commission for rehabilitation programs for disabled individuals (SECTION 4). The bill appropriates $5,442,000 from the low-level radioactive waste account to TNRCC for any necessary purpose for which TNRCC received an appropriation from the general revenue fund (SECTION 5). The bill appropriates the following amounts from the general revenue fund to the listed agencies for the state fiscal year beginning September 1, 2001: _$2,781,375 to the Office of the Governor for the criminal justice planning account; _$13,000,000 to the Office of the Governor for the purpose of making emergency and deficiency grants and disaster grants; _$5,000,000 to the Texas Rehabilitation Commission for the comprehensive rehabilitation account; _$39,000,000 to the Texas Higher Education Coordinating Board for Texas Excellence access and success grants; _$500,000 to the Texas Historical Commission for archeological heritage protection; _$500,000 to the Texas Historical Commission to evaluate and interpret resources; _$6,500,000 to the State Preservation Board for implementing the aims of the State Preservation Board; and _$1,000,000 to the Office of Court Administration for the Judicial Committee on Information Technology (SECTION 6). EFFECTIVE DATE On passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1333 modifies the original by appropriating additional emergency funds to the Texas Department of Health for the state Medicaid program from various state agencies (SECTION 1). The substitute appropriates additional funding to the Texas Department of Criminal Justice from various state agencies for the purpose of providing expenditures relating to additional prison capacity, contracts with counties for additional temporary capacity, correctional officer, sergeant, food, and laundry manager career ladder salary adjustments (SECTION 2). The substitute adds provisions relating to additional appropriations for the fiscal year beginning September 1, 2001 to specified state agencies (SECTION 6).