Combs Raises BRE
Texas Comptroller, Susan Combs, has told lawmakers that fiscal 2011 sales tax collections will exceed the current estimate. As a result, Combs is raising her fiscal year 2011 estimate of sales tax revenue by $300 million.
A $4 billion shortfall will remain for this current biennium, taking into account the increase in the revenue estimate.
House Appropriations
Yesterday, the House Committee on Appropriations took up HB 4, the supplemental bill for this current biennium, and HB 275, which authorizes use of the rainy day fund to help make up for the shortfall in this current biennium. During the meeting Committee Chairman Jim Pitts offered assurances that HB 275 provides authority to pay existing debt in the current biennium, not spending in the future.
It is expected these bills will be voted out of the committee today or tomorrow and the committee will resume discussion on HB 1, the appropriations bill for the upcoming 2012-2013 biennium, shortly following.
Senate Finance
Yesterday, the Senate Committee on Finance met and heard testimony on several bills including invited testimony on SB 1278. SB 1278 is the supplemental appropriations bill to cover needed appropriations for the current biennium.
Committee Chairman Steve Ogden said there is not a rush to get SB 1278 out of committee. Based on discussions in the committee, members may wait until further discussions take place on Article II (health and human services) and Article III (education) before voting on the bill.
The Senate Finance Subcommittee on Medicaid also met yesterday and received testimony from the hospital industry regarding the Centers for Medicare & Medicaid Services (CMS) Demonstration Waiver agreement with the Health and Human Services Commission (HHSC), which provides for a hospital carve-in to Medicaid Managed Care and the preservation of Upper Payment Limit dollars. John Hawkins of the Texas Hospital Association (THA) testified on behalf of the Texas hospital industry and in support of the approach. A meeting between HHSC staff and CMS staff is expected to take place March 16 to obtain approval of the HHSC concept paper outlining the framework for the CMS Demonstration Waiver.
The Subcommittee also discussed a number of HHSC proposed cost containment items with HHSC Executive Commissioner Tom Suehs and Commissioner Chris Traylor of the Department of Aging and Disability Services for further clarification. No votes were taken on the items and Chairwoman Jane Nelson informed the members that Senate Finance Chairman Steve Ogden has called upon the Subcommittee on Medicaid to additionally serve as the Senate Finance Article II Work Group. The Subcommittee on Medicaid/Article II Work Group will meet each day for the remainder of the week to configure Article II budget recommendations for submission to Chairman Ogden by next week. As a result, Nelson indicated there will not be any Senate Health and Human Services hearings this week.