LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 8, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 1263
Committee on Health & Human Services By: Ellis
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1263 ( Relating
to requiring the Texas Workforce Commission, local workforce
development boards and centers, and certain employers to provide
tax assistance to certain working individuals and families.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1263-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(337,022) 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 adds Section 2308.314 to the Government Code and Section
301.067 to the Labor Code. These amendments would require workforce
development centers to provide information about the federal
earned income tax credit for working families to participants
in workforce development programs. This bill also requires
these centers and employers of participants in wage supplementation
programs to offer information and assistance in preparing and
filing federal income tax forms. In addition, the development
centers and certain offices of the Workforce Commission would
be required to perform as volunteer income tax assistance sites
during the two months preceding the federal income tax deadline.
Methodolgy
It is assumed that the local workforce development boards would
absorb the corresponding costs requiring the provision of income
tax information and assistance. The Workforce Commission would
incur similar costs related to the provisions affecting commission
offices and in those workforce development regions where no
local board exists or is not operational. The commission would
require the use of current staff for volunteer service coordination
and incur training costs for tax assistance preparation. The
requirements of this bill do not allow federal unemployment
insurance grant funds to be used in implementing its provisions.
As a result, Workforce Commission staff currently funded through
unemployment insurance grants would be funded through general
revenue during the period for which they provide tax preparation
assistance through the various commission offices.
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
Savings/(Cost)
from General
Revenue Fund
0001
1998 ($168,511)
1998 (168,511)
2000 (168,511)
2001 (168,511)
2002 (168,511)
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 ($168,511)
1999 (168,511)
2000 (168,511)
2001 (168,511)
2002 (168,511)
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: 324 Department of Human Services
320 Texas Workforce Commission
LBB Staff: JK ,BB ,RA