LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 31, 1997
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 1909
Committee on Human Services By: Maxey
House
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 TANF families.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1909-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.
The bill would amend Chapter 31 of the Human
Resources Code by adding Section 31.043. The bill would require
the Department of Human Services to use a form of fill-the-gap
budgeting to extend the period of supported employment for families
who receive financial assistance.
The bill would amend Sections
7.06, Chapter 655, Acts of the 74th Legislature, Regular Session,
1995. The department would notify members of the 76th and 77th
legislatures on the program's success in assisting families
in becoming more self-sufficient. The department would revise
the pilot program to implement statewide the "fill-the-gap"
budgeting program, and reflect the method of extending transitional
benefits to 24 months as the sole method used in the program.
Federal approval could be required to implement the bill.
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. The note assumes Child Care Development
Block Grant (CCDBG) funding would be available to fund extended
child care benefits. Any amount not funded with federal funding
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
pilot program is expected to begin September 1, 1997 and end
August 31, 2002. The impact of extending transitional benefits
from 12 to 24 months would begin in 1999, the second year of
the pilot.
Child Care Benefits:
--In 1999, 1,375 additional
children would qualify for child care services. Only 426 children
(or 31%) are expected to participate. At a rate of $12.52 per
day (X) 21.7 days per month (X) 12 months, the yearly cost would
be $1,389,664.
--In the following years, 1,688 additional
children would qualify for child care services. Only 523 (or
31%) are expected to participate. At a rate of 21.7 days per
month (X) 12 months (X) $12.52 per day, the yearly cost would
be $1,706,002.
Medical Benefits:
No additional cost is
assumed, as persons requiring medical services would be treated
through the Medically Needy program.
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 ($6,486,000)
1998 (7,857,664)
2000 (8,174,002)
2001 (8,174,002)
2002 (8,174,002)
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
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