LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 12, 1995 TO: Honorable John Whitmire, Chair IN RE: Committee Substitute Committee on Criminal Justice for Senate House Bill Austin, Texas No. 1409 FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1409 (relating to children and family issues, including health and human services issues) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would authorize the Health and Human Services Commission (HHSC) to certify the creation of local Child and Family Commissions. A local Child and Family Commission would be required to assess the need for child and family resources in the community, monitor the effectiveness and efficiency with which public and private organizations that receive public money deliver services, and submit to the HHSC strategic plans for services. With consent of the Legislative Budget Board, the HHSC in conjunction with the affected agencies, would be required to develop a budget mechanism to combine state and local funds to provide grants to local Child and Family Commissions and to distribute grant funds that may be appropriated by the Legislature for local Child and Family Commissions. Grants to local commissions would need to be matched by local resources, be distributed based on a county's child population and per capita income. The HHSC could retain a maximum of 2 percent of any funds appropriated for state grants for the administration of the program. Community Assistance Grants certified by the commission for the purpose on providing an incentive for a community to establish a local child and family commission would be required to be in proportion with the child population in the county, not to exceed $50,000, be matched equal to at least one-half of the grant amount by local resources, and may not extend beyond a period of one year. The State Auditor would be required to develop standardized forms and schedules for a local commission to use in conducting an annual financial audit. The bill would require the Commissioner of Health and Human Services to coordinate the program services and eligibility requirements, funding, enrollment periods, fees, and administrative functions of the child care programs of the Department of Human Services, the pre-kindergarten programs of the Central Education Agency, and the federal Head Start programs by no later than December 1, 1996. The Commissioner of Health and Human Services would be required to report the results of this initiative to the Legislature by December 1, 1996. The bill would require the Department of Health to establish a program to promote public awareness of the importance of prenatal care no later than January 1, 1996. In addition, the department is required to develop a plan to increase accessibility of dental services for children. The plan would target children who are eligible for but not receiving medical assistance (Medicaid). The department would be required to submit a plan and budget by September 1, 1996 and present the same to the Seventy-fifth Legislature. The bill would require the Department of Mental Health and Mental Retardation ( MHMR), Central Education Agency, and the Department of Protective and Regulatory Services to develop a plan for providing services to children with severe mental or emotional disorders who require residential treatment. MHMR would be required to submit a plan, estimated budget needs, and recommendations for any statutory changes to implement the plan to the Governor and the Legislature no later than January 15, 1997. The bill would require the Comptroller to establish a pilot project to determine the effectiveness of using investment budgeting to measure the cost-effectiveness of certain children's prevention services. The Comptroller would report its findings regarding the effectiveness of the pilot program to the Governor and the Seventy-fifth Legislature no later than January 15, 1997. The fiscal implications of this bill as reported by the Health and Human Services Commission would include the addition of one staff person as a program administrator to coordinate the child care programs in the 1996-97 biennium. The requirements relating to the delivery of services to children and families are not expected to increase costs for HHSC because the Commission anticipates assistance from other health and human services agencies. The Commissioner of Health stated, "Though the effectiveness of the campaign will at least in part depend upon additional funding that might be made available, we are confident that we can initiate a prenatal care awareness campaign using existing TDH resources." The other agencies affected by this bill indicated that no significant new costs were anticipated by the provisions of the bill. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Cost Out Change in Year of General Number of State Revenue Fund 001 Employees from FY 1995 1996 $54,439 1.0 1997 50,439 1.0 1998 0 .0 1999 0 .0 2000 0 .0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Comptroller of Public Accounts, State Auditor's Office, Commission for the Blind, Department of Human Services, Department of Health, Health and Human Services Commission, Texas Department of Mental Health and Mental Retardation, Central Education Agency - Administration LBB Staff: JK, AZ, RR