LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 16, 1995



 TO:     Honorable Hugo Berlanga, Chair         IN RE:  Senate Bill No.
         Committee on Public Health             1343,
         House of Representatives                             as engrossed
         Austin, Texas                                  By: Ellis, et al.









FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1343 (Relating to the establishment and operation of a healthy
start/healthy families program.) 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 require the Texas Department of Health to develop
a healthy start/healthy families home-based family support
services pilot program designed to prevent child abuse and
neglect.  The bill directs the Department of Health to model this
pilot program after a Hawaii program.  The Board of Health would
be required to adopt rules governing the establishment of a grant
to a community agency or nonprofit organization with experience
in child abuse prevention services.

The bill would require the Department of Health to establish the
pilot program in five communities of varying population size. 

Fiscal implications noted below assume a cap of $750,000 per
fiscal year, although the Department estimates that it would cost
approximately $3,000 per year per enrolled family.  The
Department of Health projects that local resources would be
necessary to fund the remaining costs incurred by grant
recipients to establish and maintain the program.  Fiscal    




implications below assume that administrative costs to the
Department of Health for establishing rules and selecting grant 
recipients could be borne within existing resources.

It is assumed that additional federal funds would be available in
association with this project for Medicaid administrative
claiming.  However, the amount of federal funds to be secured
cannot be determined.

While the bill could produce savings through the prevention of
child abuse, these savings cannot be determined.











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 
             Year      of  General    
                     Revenue Fund 001 
                                      
          1996                $750,000
          1997                 750,000
                                      
          1998                 750,000
                                      
          1999                 750,000
          2000                 750,000
                                      
                                      
                                      
       The fiscal implication to  units of local government cannot be
determined.


Source:   Department of Health
          LBB Staff: JK, KF, DF