LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 22, 1997
TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 1909, As Passed 2nd House
Speaker of the House Maxey
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1909 ( Relating
to the methods used to extend the period of supported employment
for recipients of Temporary Assistance for Needy Families.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1909-As Passed 2nd House
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.
The bill would amend Chapter 31 of the Human
Resources Code by adding Section 31.043. The bill would permit
the Department of Human Services to use a form of fill-the-gap
budgeting, or another method under which the department disregards
earnings of family members who obtain employment while receiving
assistance, to extend the period of supported employment for
families who receive financial assistance.
Section 3 of the
bill would require the Department of Human Services to expand
the "fill-the-gap budgeting" pilot established by Section 7.06,
Chapter 655, Acts of the 74th Legislature, Regular Session,
1995.
Please Note: The current language in Section 3 does
not conform with the state waiver "Achieving Change for Texans"
in that it implies a statewide expansion of the pilot.
Fiscal Analysis
The fiscal note assumes Temporary Assistance for Needy Families
(TANF) block grant funding would be available to fund expansion
of fill-the-gap budgeting. Any amount not funded with TANF
would be a cost to the General Revenue Fund.
Methodolgy
Extending fill-the-gap budgeting to all Texas AFDC/TANF recipients:
--An
incremental increase of $431,000 per year would be paid to clients
already receiving extended benefits through federal guidelines.
--Approximately
21,703 clients not eligible for extended benefits through federal
guidelines would receive extended benefits through fill-the-gap
budgeting. Additional benefits would average $23.18 per person
per month. The yearly amount would be $6,037,000.
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
Savings/(Cost)
from Federal
Funds: TANF
0555
1998 ($6,468,000)
1998 (6,468,000)
2000 (6,468,000)
2001 (6,468,000)
2002 (6,468,000)
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 324 Department of Human Services
LBB Staff: JK ,BB ,PP