LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 25, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 1113
Committee on Health & Human Services By: Ellis
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1113 ( Relating
to a state tax refund and federal income tax credit available
to certain employers of AFDC recipients.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB1113-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $749,000 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 implements the provisions outlined in the Texas Performance
Review recommendation WF-4. This bill would require the Texas
Workforce Commission to be the lead agency in promoting the
federal work opportunity tax credit and the state tax refund
programs. This function would be transferred from the Department
of Human Services and the Department of Health. The bill would
require developing educational materials intended to encourage
participation in these programs. Savings would be due to increased
promotion of these programs and would result from reduced amounts
of federal TANF funds and state portion of Medicaid benefits.
Methodolgy
The Office of the Comptroller estimates that increased promotion
of the program would result in 87 additional refund claims under
the program. The Comptroller estimates that the state would
save $188 per month in TANF funds for each recipient employed
under the program. In addition, the state would save $136 per
month for the state's portion of Medicaid benefits. These savings
amount to $3,888 per recipient for a 12-month period. Subtracting
from this amount the average state tax refund of $1,110 implies
a state savings of $2,778 per year per TANF recipient hired.
A $97,000 impact to general revenue is estimated beginning
in 1999 due to increased tax refunds paid.
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 Tax Refund Costs Probable Probable
Probable Savings/(Cost) Savings/(Cost)
Savings/(Cost) from General from Workforce
from General Revenue Fund Commission
Revenue Fund Federal Account
- Federal
OTHER-GR 0001 5026
1998 $0 $169,000 $104,000
1998 (97,000) 677,000 418,000
2000 (97,000) 677,000 418,000
2001 (97,000) 677,000 418,000
2002 (97,000) 677,000 418,000
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 $169,000
1999 580,000
2000 580,000
2001 580,000
2002 580,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies:
304 Comptroller of Public Accounts
320 Texas Workforce Commission
324 Department of Human Services
LBB Staff: JK ,BB ,RA