Highlights 77th Texas Legislature - Senate

_____________________ A PPROPRIATIONS
PPROPRIATIONS ACT
77 th Texas Legislature
S.B. 1 makes a $1.1 billion biennial appropriation of Comprehensive Tobacco Settlement Agreement and
Release (Tobacco Settlement) receipts. The earnings of permanent funds and endowments are made in
Article XII and include funding for:
• The Children’s Health Insurance Program (CHIP) — $419.1 million;
• Department of Human Services — $143.8 million;
• Medicaid Simplification — $122.6 million;
• Medicaid Provider Rates — $120 million;
• Other healthcare services — $124 million; and
• Distributions from funds and endowments — $134.1 million.
The increase in appropriations from 2000–2001 is primarily due to the implementation of CHIP and the
funding of additional health and human services programs with Tobacco Settlement receipts. Tobacco
Settlement receipts anticipated revenue for the 2002–2003 biennium is estimated to be $445 million in FY
2002 and $484.5 million in FY 2003.
From receipts collected pursuant to the Tobacco Settlement and other funding sources, and pursuant to
H.B. 1676 and H.B. 1945, 76th Legislature, the following appropriations for the 2002–2003 biennium were
recommended in S.B. 1 with a grand total of $530,607,115 for FY 2002 and $528,587,270 for FY 2003:
• Appropriations made from Tobacco Settlement receipts, Total — $463,557,115 for FY 2002 and
$461,537,270 for FY 2003;
• Appropriations made from permanent funds Created by H.B. 1676 and H.B. 1945, 76 th Legislature,
Total — $40,275,000 for FY 2002 and $40,275,000 for FY 2003;
• Appropriations to institutions of higher education from endowment funds established for the those
institutions of higher education, Total — $26,775,000 for FY 2002 and $26,775,000 for FY 2003;
and
• Supplemental appropriations made in riders, Total — $8,000,000 in FY 2002 and $5,000,000 in FY
2003.
The estimated appropriation and unexpended balance of the Tobacco Settlement receipts appropriated to
higher education from endowment funds are out of the amounts available for distribution or investment
returns of the funds. Amounts available for distribution or investment returns in excess of the amounts
estimated above are also appropriated to the specified agency or institution. All balances of appropriated
funds, except for any General Revenue of agencies and institutions named in this article at the close of the
fiscal year ending August 31, 2001, and the income to said funds during the fiscal years beginning
September 1, 2001, are appropriated. Any unexpended appropriations made above as of August 31, 2002,
are appropriated to the same agencies and institutions for the same purposes for FY 2003. The estimated
amounts appropriated out of the Permanent Fund for Tobacco Education and Enforcement, the Permanent
Fund for Children and Public Health, the Permanent Fund for Emergency Medical Services and Trauma
Care, the Permanent Fund for Rural Health Facility Capital Improvement, and the Community Hospital
Capital Improvement Fund (Small Urban Hospitals) are out of the available earnings of the funds. Available
Senate Research Center 6