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