LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
March 21, 1995
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 22
Committee on Health & Human Services By: Zaffirine etal.
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
22 (Relating to the provision of services and other assistance to
needy people, including health and human services and assistance
in becoming self-dependent.; Relating to the provision of
services and other assistance to needy people, including health
and human services and assistance in becoming self-dependent.)
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 implement a number of recommendations found in the
Comptroller of Public Accounts' Partnership for Independence and
Gaining Ground.
Article 1 of the bill, entitled "Work Requirements," would
provide for a number of work requirements in a number of programs
administered by various agencies.
Article 2 of the bill, entitled, "Reducing Dependence on State
Assistance," would provide for adult education programs for Aid
for Families with Dependent Children clients and provide for a
mechanism by which AFDC recipients qualifying for benefits under
federal programs could apply for those programs, and provide for
the creation of several pilot demonstration projects, such as
savings accounts for AFDC recipients and time-limited benefits.
Article 3, entitled, "Reducing Fraud and Error," would create a
Public Assistance Fraud Oversight Task Force and create other
mechanisms designed to reduce fraud and error.
Article 4, entitled, "Increasing Federal Funds," would involve
amending the state's emergency assistance plan under Title IV-A.
The plan amendments would include mental health emergency
services and services for children or significant adults in a
child's family needing chemical dependency services.
Article 5, entitled, "Integrated Eligibility Determination,"
would require the development of integrated eligibility
determination. The bill would provide increased oversight and
responsibility to the Health and Human Services Commission.
Costs to the General Revenue Fund built into this estimate
include:
1. Creation of a social services administrator at Texas
Rehabilitation Commission (Sections 1.05, 1.06, 1.07, 1.08).
2. Administrative costs for Department of Human Services related
to Section 1.10, a work requirements project.
3. Administrative costs related to the establishment of adult
education learning labs (Section 2.01).
4. Administrative costs related to a consultant contract related
to eligibility for SSI/SSDI (Section 2.05).
5. Administrative costs related to AFDC time-limited benefits
pilot (Section 2.07).
6. Automation support costs for Emergency Assistance pilot
program (Section 2.08).
7. Increased costs related to larger number of people qualifying
for benefits due to the work history and one hundred hour rule
changes (Section 2.10).
8. Administrative costs related to a fingerprint imaging pilot
for fraud prevention and detection (Section 3.08).
9. Administrative costs related to children's mental health
services (Section 4.01).
10. Administrative costs related to chemical dependency services
(Section 4.02).
11. Costs related to integrated service delivery and eligibility
determination system (Sections 5.01, 5.02, 5.07).
Savings to the General Revenue Fund built into this estimate
include:
1. AFDC savings due to clients leaving the rolls due to
extending the supported work period for transitional benefits
(Section 1.10).
2. AFDC savings due to assisting clients eligible for SSI and
SSDI apply for those benefits (Section 2.05).
3. AFDC savings associated with a time-limited benefits pilot
(Section 2.07).
4. AFDC savings associated with an emergency benefits pilot
project (Section 2.08).
5. AFDC savings associated with a project to change the work
history and one hundred hour rules (Section 2.10).
6. AFDC savings associated with fraud prevention fingerprint
imaging pilot (Section 3.08).
7. Savings associated with securing Title IV-A Emergency
Assistance Funds for children's mental health services, chemical
dependency services and others (Sections 4.01, 4.02).
8. Savings due to implementation of the integrated service
delivery and eligibility determination system which results in a
reduction in full-time equivalent positions (Sections 5.01, 5.02,
5.07).
There are several areas for which the fiscal implications cannot
be determined:
1. Section 1.02, related to the JOBS program.
2. Section 1.03, related to workforce development would depend
on the actions of local workforce development boards.
3. Section 1.04, related to special revolving loan funds for
education, training, and employment funds.
4. Sections 1.05, 1.06, 1.07, and 1.08, relating to supported
employment
5. Section 2.09, related to the creation of savings accounts for
AFDC recipients.
6. Potential savings associated with the implementation of
Sections 3.01, 3.02, 3.03, 3.04, 3.05, 3.06 and 3.07, relating to
the reduction of fraud and error rates.
7. Sections 5.08, 5.09, and 5.10, relating to the expansion of
"one-stop shopping" for eligibility determination.
8. Section 5.11, relating to the streamlining of eligibility
determination.
Fiscal implications listed below would be accompanied by
corresponding changes in federal funds which were not included in
the fiscal estimate. Federal waivers would be required for some
provisions of this bill. Fiscal implications shown below are
those submitted by the Comptroller of Public Accounts.
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 Probable Savings Probable Net Gain
Year of General Revenue from General to Local Funds
Fund 001 Revenue Fund 001
1996 $3,236,000 $6,716,900 $16,409,000
1997 3,728,000 22,934,000 29,610,000
1998 2,241,000 30,783,000 29,610,000
1999 1,137,000 35,989,000 29,610,000
2000 1,137,000 40,212,000 29,610,000
Fiscal Change in
Year Number of State
Employees from
FY 1995
1996 1.0
1997 (646.0)
1998 (1294.0)
1999 (1294.0)
2000 (1294.0)
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Comptroller of Public Accounts, Department of Human
Services,
Department of Public Safety, Department
of Criminal Justice,
Department of Protective and Regulatory
Services,
Health and Human Services Commission,
University of Texas System,Department of
Health
LBB Staff: JK, KF, AZ, DF