LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 25, 1997
TO: Honorable Bob Bullock IN RE: Senate Bill No. 211, As Passed 2nd House
Lieutenant Governor Ellis
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB211 ( relating
to the establishment and operation of the Texas child care fund.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB211-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.
Fiscal Analysis
The bill would amend the Labor Code to create the Texas Child
Care Fund as a new, General Revenue-Dedicated account. The
fund could consist of donated funds for optimizing the amount
of federal child care funds eligibility for the state. These
donated funds would have a positive effect on the state's cash
flow. None of the related agencies would incur significant
administrative costs as a result of the creation of this fund.
Methodolgy
The amount of estimated donated funds from local entities was
developed by the Office of the Comptroller of Public Accounts.
The bill specifies that the funding sources for the Texas Child
Care Fund include state appropriations and money donated to
the state by local governments, businesses, nonprofit organizations,
or other persons for child care services. School districts,
local government and other non-profit and local entities currently
donate $7 million for child care services in Texas. It is estimated
that the Texas Child Care Fund would raise an additional 50
percent, or $3.5 million, for fiscal year 1998. A 10 percent
growth in donations is estimated for fiscal year 1999, and a
20 percent growth rate in succeeding years.
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 Revenue Probable
Gain/(Loss) from Savings/(Cost)
New GR-Dedicated from Federal Funds
Account -
8021 0555
1998 $3,480,000 $5,959,000
1998 3,828,000 6,554,000
2000 4,594,000 7,865,000
2001 5,512,000 9,438,000
2002 6,615,000 11,326,000
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.
The fiscal impact to local governments would be a corresponding
gain in federal funds distributed by the state to the amounts
donated into the Texas Child Care Fund.
Source: Agencies:
LBB Staff: JK ,TH