LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session February 7, 1997 TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 211 Committee on Finance By: 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 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. 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 would 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 governments was developed by the Office of the Comptroller of Public Accounts. The bill does not specify whether the federal funds will be placed in the Texas Child Care Fund in addition to the locally donated funds. 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 Estimated Donated Estimated Gain in Funds Probable Federal Revenue Funds Probable Gain/(Loss) from Revenue New - GR Dedicated Gain/(Loss) from Federal Funds NEW-DED 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: 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 The fiscal impact to local governments would be a gain in federal funds distributed by the state corresponding to the amounts donated into the Texas Child Care Fund. Source: Agencies: 324 Department of Human Services 304 Comptroller of Public Accounts 320 Texas Workforce Commission LBB Staff: JK ,RR ,RA