LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 12, 1997 TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 213 Committee on Health & Human Services By: Ellis Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB213 ( Relating to the establishment of child care training centers for certain recipients of public assistance.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB213-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 This bill requires the Texas Workforce Commission (TWC) to adopt rules and certify day care centers as training facilities for recipients of public assistance as developed in the Texas Performance Review recommendation WF-6. These training centers would be required to offer training and certification in basic child care, child care vendor entrepreneurial training, and Head Start teaching. Methodolgy The Comptroller's cost estimate concludes that this bill would generate a net savings of $1.1 million over the 1998-99 biennium. This estimate includes minimal administration costs of $41,000 related to the Texas Workforce Commission. The Workforce Commission's cost estimate exceeds the Comptroller's estimate by $175,000 during 1998-99 including the addition of 2.5 FTEs. The Workforce Commission's estimate includes the FTEs and related expenses generally to develop (1) the criteria and manage the process used to certify child care facilities as training sites; (2) the curriculum for training child care staff as mentors and master teachers; and (3) the policies and procedures for monitoring centers during this process. In addition, Workforce staff would coordinate agreements with community colleges to offer the training for the Child Development Associate (CDA) certification required for Head Start program teaching in a two course format. Although the Comptroller's office estimated the costs and savings related to this recommendation to apply to general revenue, it is likely that this program may be eligible for federal funding from the Temporary Assistance for Needy Families (TANF) block grant. Using the Comptroller's methodology for establishing a savings estimate, this program would result in $1.2 million in savings to federal funds over the 1998-99 biennium. 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 Change in Number Savings/(Cost) Savings/(Cost) of State from Workforce from Workforce Employees from Commission Commission FY 1997 Federal Account Federal Account - Federal - Federal 5026 5026 1998 ($107,882) $215,000 2.5 1998 (107,882) 944,000 2.5 2000 (107,882) 2,790,000 2.5 2001 (107,882) 6,658,000 2.5 2002 (107,882) 10,535,000 2.5 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 No fiscal implication to units of local government is anticipated. Source: Agencies: 304 Comptroller of Public Accounts 324 Department of Human Services 501 Department of Health 530 Department of Protective and Regulatory Services 320 Texas Workforce Commission LBB Staff: JK ,BB ,RA ,JA