LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 31, 1997
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 1784
Committee on Human Services By: Hilderbran
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1784 ( Relating
to the amount of assistance granted under the financial assistance
program for persons with dependent children.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB1784-As Introduced
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would require the Department of Human Services to increase
the amount of financial assistance to a Temporary Assistance
for Needy Families (TANF) recipient who is participating in
work or employment activities. The amount would be added to
cover the recipient's incidental work costs but may not exceed
ten percent of the family grant amount.
Methodolgy
The Texas Workforce Commission provided an estimate that 42,000
TANF cases/families would meet the requirement to receive an
additional grant. The Department of Human Services assumed
that each work participant family would receive a $16 monthly
grant increase in order to make the incentive as large as possible
without exceeding the ten percent threshold established in the
bill. This assumption also allows implementation of the provisions
without an overall increase in TANF grant benefits.
Because
grant benefits cannot decrease below 1988 levels due to provisions
in the Personal Responsibility and Work Opportunity Act of 1996,
decreases in grant amounts are assumed for all recipients to
ensure that the reductions in grant do not fall below the minimum
1988 level. The grant reduction is approximately $3.50 per
case/family per month. Clients that would participate in the
JOBS employment program would also receive the reduction but
would also receive the $16 increase, with a net increase of
an estimated $12.50 per month.
The fiscal implications/costs
to Temporary Assistance for Needy Families federal block grant
correspond to programming alterations to modify the payment
standards on the DHS computer systems. Because the provisions
of the bill would not allow support services (such as child
care, transportation, job search assistance, etc.) in the aggregate
to increase, it is assumed that TWC would be able to absorb
any administrative changes necessary.
The method of finance
for implementation of the provisions of the bill assumes that
federal funds from the Temporary Assistance for Needy Families
block grant would be used for the administrative changes necessary
to implement the provisions of the bill. In the event that
these funds are not available, general revenue funding may be
needed.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable (Cost)
from Federal
Funds:
Temporary
Assistance for
Needy Families
Block Grant
0555
1998 ($1,059,000)
1998 0
2000 0
2001 0
2002 0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
No fiscal implication to units of local government is anticipated.
Source: Agencies: 324 Department of Human Services
320 Texas Workforce Commission
LBB Staff: JK ,BB ,AZ