The bill would make supplemental appropriations for Fiscal Years 2005-2007 and reduce appropriations in Fiscal Year 2005.
 
Fiscal Year 2005 Appropriations and Reductions:
 
The bill would appropriate $673,300,000 to the Health and Human Services Commission (HHSC) for the Medicaid program, including making supplemental hospital payments and restoring eligibility for Medicaid benefits to pregnant women with incomes of up to 185 percent of the federal poverty level, provided that: the Commission has used all revenue available to the Medicaid program, including premium credits and vendor drug rebates. The bill would appropriate $65,700,000 to HHSC for Children's Health Insurance Program and would appropriate $85,600,000 to HHSC for various programs.
 
The bill would appropriate $7,300,000 to the Department of Family and Protective Services to fund reforms of the Child Protective Services Program.
 
The bill would appropriate $22,300,000 to the Department of Aging and Disability Services to fund Community Care Caseload and Costs.
 
The bill would appropriate to the Texas Department of Criminal Justice: $15,900,000 to provide for contracted temporary capacity, salaries and wages, utilities, and fuel; and $31,300,000 to provide correctional managed health care.
 
The bill would appropriate $30,700,000 to the Teacher Retirement System of Texas to fund the employee pass-through program.
 
The bill would appropriate $2,112,000 to the Texas Education Agency (TEA) to fund the juvenile justice alternative education program through an interagency agreement with the Texas Juvenile Probation Commission. The bill would also appropriate to TEA: $560,000,000 to fund the Foundation School Program, and $175,000,000 to fund the purchase of textbooks.
 
The bill would appropriate $1,900,000 to the State Board for Educator Certification to fund the administration of certification examinations.
 
The bill would appropriate $1,500,000 to the secretary of state to fund the state matching contribution for the Help America Vote Act.

The bill would appropriate $2,140,000 to the Texas Parks and Wildlife Department to fund repairs to the San Jacinto Monument.
 
The bill would appropriate $25,000,000 to the Texas Commission on Environmental Quality to fund clean up of sites contaminated by petroleum storage tanks.

The bill would appropriate $78,928,959 to agencies and institutions that own real property purchased with general revenue or general revenue dedicated funds and that had appropriations reduced under House Bill 1 (the General Appropriations Act) of the 78th Legislature, Regular Session, 2003. The bill provides that the governor and the Legislative Budget Board shall allocate the appropriation among the agencies and institutions taking into account the reductions and distributions previously made.
 
The bill would reappropriate any unencumbered and unexpended appropriated amounts, under House Bill 1 (the General Appropriations Act) of the 78th Legislature, Regular Session, 2003, as amended by House Bill 28 of the 78th Legislature, 3rd Called Session, 2003.
 
The bill would appropriate $36,000 to the Ninth Court of Appeals, Beaumont to fund salaries; and would reduce by the same amount, the unencumbered amounts previously appropriated to the Tenth Court of Appeals, Waco.
 
The bill would require the following appropriation reductions of unencumbered amounts:
$17,500,000 from the General Revenue Fund to the Texas Public Finance Authority;
$1,943,939 from General Revenue Dedicated Account No. 543 (the Texas Capital Trust Fund) to the Department of Aging and Disability Service;
$1,690,606 from General Revenue Dedicated Account No. 5025 (the State Lottery Account) to the Texas Lottery Commission;
$57,200,000 from General Revenue Dedicated Account No. 5100 (the System Benefit Fund) to the Public Utility Commission
$6,000,000 from General Revenue Dedicated Account No. 5101 (the Subsequent Injury Fund) to the Texas Workers' Compensation Commission
$415,000 from General Revenue to the Texas Emancipation Juneteenth Cultural and Historical Commission.
 
Fiscal Years 2006-07 Appropriations:
 
The bill would appropriate  $100,000,000 to TRS to fund retirement contributions for public education employees.

Contingent on the actual amounts transferred to the Economic Stabilization Fund at the beginning of Fiscal Year 2006 exceeding the amounts estimated by the Comptroller of Public Accounts in the Biennial Revenue Estimate, the bill would appropriate the amount over the estimate, not to exceed $100,000,000, to the Higher Education Fund.

Contingent of enactment of HB 2 or similar legislation, the bill would appropriate $2,400,000,000 for the operation of local school districts.

The bill would require each entity appropriated money by this Act and each agency for which an amount of appropriations is reduced by this Act to report to the Legislative Budget Board.
 
The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect on September 1, 2005. Appropriations out of the Economic Stabilization Fund would be effective only if the bill received the requisite votes to allow appropriation.

This analysis assumes immediate effect.

Fiscal Year 2005 Appropriations and Reductions:

The $673,300,000 Medicaid appropriation to the Health and Human Services Commission (HHSC) would be: $471,800,000 from the General Revenue Fund, $92,400,000 from the Economic Stabilization Fund, $40,000,000 from General Revenue Dedicated Account #5080 (Quality Assurance Fund), and $69,100,000 from Other Funds (appropriated receipts match for Medicaid). The Medicaid appropriation would draw down $1,010,000,000 in additional matching federal funds. A loss in revenue of $28,200,000 in FY 2006 and $39,600,000 in FY 2007 (General Revenue) is a result of the reduction in Disproportionate Share Hospitals program revenues attributable to implementation of the UPL program in FY 2004-05 compared to current law.

The $65,700,000 (General Revenue) appropriation the HHSC for the Children's Health Insurance Program would draw $168,900,000 in matching federal funds. The $85,600,000 to HHSC for various programs would be appropriated from the General Revenue Fund.
 
The $7,300,000 appropriation (General Revenue) to the Department of Family and Protective Services would draw $2,900,000 in matching federal funds.
 
The $22,300,000 appropriation (General Revenue) to the Department of Aging and Disability Services would draw $33,500,000 in matching federal funds.
 
The $47,200,000 to the Texas Department of Criminal Justice would be appropriated from the General Revenue Fund.

The $30,700,000 to the Teacher Retirement System of Texas would be appropriated from the Economic Stabilization Fund.

The $2,112,000 to the Texas Education Agency (TEA) to fund the juvenile justice alternative education program would be appropriated out of General Revenue Account No. 193 (the Foundation School Fund). The $560,000,000 appropriated to TEA for the Foundation School Program would be from the Economic Stabilization Fund. The $175,000,000 to TEA for textbooks would be $30,000,000 from the Economic Stabilization Fund and $145,000,000 from the General Revenue Fund.
 
The $1,900,000 to the State Board for Educator Certification would be appropriated from the General Revenue Fund.
 
The $1,500,000 to the secretary of state would be appropriated out of the General Revenue Fund and transferred to General Revenue Dedicated Account No. 5095 (the Election Improvement Fund).
The $2,140,000 to the Texas Parks and Wildlife Department would be appropriated from the General Revenue Fund.

The $25,000,000 to the Texas Commission on Environmental Quality would be appropriated from the General Revenue-Dedicated Account No. 655 (Petroleum Storage Tank Remediation).
The $78,300,000 to agencies and institutions for partial restoration of appropriation reduction for property sales would be appropriated from the General Revenue Fund.
 
The appropriation reduction of any unencumbered and unexpended appropriated amounts, under House Bill 1 (the General Appropriations Act) of the 78th Legislature, Regular Session, 2003, as amended by House Bill 28 of the 78th Legislature, 3rd Called Session, 2003, would result in savings in Fiscal Year 2005, $180,472,802 to the General Revenue Fund for state fiscal relief and $24,485,786 to the General Revenue Fund and $2,150,657 to General Revenue-Dedicated Accounts due to vetoed appropriations. 

The $36,000 appropriation to the Ninth Court of Appeals, Beaumont and the $36,000 reduction of the unencumbered amounts previously appropriated to the Tenth Court of Appeals, Waco is from the General Revenue Fund.

The bill would require appropriation reductions of $17,951,000 in General Revenue-Related funds and $66,834,545 from General Revenue-Dedicated accounts.

Fiscal Years 2006-07 Appropriations:

The $100,000,000 appropriation to TRS would be from the General Revenue Fund.

The contingent appropriation to the Higher Education Fund, not to exceed $100,000,000 would be from the Economic Stabilization Fund. This estimate assumes that there will no be any additional revenue in the Economic Stabilization Fund above the amounts in the Biennial Revenue Estimate.
The contingent appropriation of  $2,400,000,000 due to the enactment of HB 2 or similar legislation would be from the General Revenue Fund; but as the appropriation is contingent on other acts of the Seventy-ninth Legislature, Regular Session it is not included in this estimate.