LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 18, 1997 TO: Honorable Judith Zaffirini, Chair IN RE: House Bill No. 1909, Committee Report 2nd House, as amended Committee on Health & Human Services By: Maxey Senate 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-Committee Report 2nd House, as amended 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. 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