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