LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 10, 1997 TO: Honorable Toby Goodman, Chair IN RE: Senate Bill No. 181, Committee Report 2nd House, Substituted Committee on Juvenile Justice and Family Issues By: Shapiro House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB181 ( Relating to the parent-child relationship, suits affecting the parent-child relationship, and the protection of children.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB181-Committee Report 2nd House, Substituted FN Revision 1 Implementing the provisions of the bill would result in a net positive impact of $4,468,614 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 amend two chapters in the Family Code relating to the conservatorship of children by the Department of Protective and Regulatory Services (PRS). The bill would require the court to dismiss a suit affecting the parent-child relationship on the first Monday after the first anniversary of the date the court rendered an order appointing PRS as temporary managing conservator, unless the court had already rendered a final order or granted an extension of up to 180 days. The bill would also allow the court to retain jurisdiction over the child, and not dismiss the suit or render a final order for an additional 180 days, under certain circumstances. The effective date of the act would be January 1, 1998, and the provisions would apply to all suits commenced before, on, or after this date. The court could establish a later dismissal date for suits involving children in PRS temporary managing conservatorship before January 1, 1998. Methodolgy It is assumed that the provisions relating to permanency planning for children in PRS temporary managing conservatorship would significantly increase the workload of the department's child protective services program. The workload increase would be heaviest in the first two fiscal years, when the department would implement new permanency planning procedures and begin moving about 3,500 foster children who have been in conservatorship for 12 or more months through the court system. Additional child protective services staff would be needed to handle the new permanency planning requirements. The cost estimate assumes a ratio of six clerks per child protective service worker. The cost of the additional workload would be more than offset by a savings in foster care and other purchased service payments, because the provisions of the bill would cause some children to leave the system more quickly. The cost estimate uses federal revenue from the Temporary Assistance for Needy Families (TANF) program. In the event that TANF funds are unavailable for allocation, General Revenue may need to be substituted. Estimated costs and savings have been revised to reflect updated information received from PRS after the previous fiscal note was issued. 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 Probable Probable Probable Change in Number Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) of State from General from General from Federal Funds from Federal Funds Employees from Revenue Fund Revenue Fund FY 1997 0001 0001 0555 0555 1998 ($2,828,922) $360,918 ($2,066,809) $562,862 97.0 1998 (5,579,392) 12,516,010 (4,067,016) 6,144,442 207.0 2000 (2,757,152) 18,168,770 (2,031,160) 8,821,369 91.8 2001 (1,980,998) 12,390,049 (1,476,951) 6,027,335 57.4 2002 (2,050,479) 12,389,345 (1,535,426) 6,028,686 57.7 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 ($2,468,004) 1999 6,936,618 2000 15,411,618 2001 10,409,051 2002 10,338,866 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 530 Department of Protective and Regulatory Services LBB Staff: JK ,CB