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