LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 29, 1999
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB937 by Maxey (Relating to the transfer and operation
of certain child and adult nutrition programs), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB937, As Introduced: negative impact of $(591,000) through the *
* biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(408,000) *
* 2001 (183,000) *
* 2002 (183,000) *
* 2003 (183,000) *
* 2004 (183,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 1999 *
* 0001 *
* 2000 $(408,000) 5.0 *
* 2001 (183,000) 5.0 *
* 2002 (183,000) 5.0 *
* 2003 (183,000) 5.0 *
* 2004 (183,000) 5.0 *
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Technology Impact
The transfer of this program to the Texas Education Agency (TEA) would
necessitate the revision of the Child Nutrition Program Information
Management System (CNPIMS). Recent federal legislation requires a
single consolidated agreement and claim form for all CNP programs
administered by a single state agency. All agency systems would have to
be revised to handle payments to non-school entities. It is estimated
that this would cost approximately $250,000 in FY 2000 and $25,000
annually for maintenance thereafter.
Fiscal Analysis
The bill amends the Texas Education Code and the Human Resources Code as
they pertain to the provision of federal nutrition programs. The
legislation adds administration of federal nutrition programs to the
powers and duties of the TEA, transfers the Summer Food Program from the
Texas Department of Human Services (TDHS) to TEA, and requires TEA to
engage in new outreach activities related to the Summer Food Program.
The bill also amends the administration of the Child and Adult Care Food
Program within TDHS.
The transfer of the existing Summer Food Program does not have a net
fiscal impact on the state, although it has a significant impact on both
TEA and TDHS. The Summer Food Program federal grant is approximately
$20,000,000 per year, of which approximately $600,000 is available for
administration. The interagency agreement to transfer the program
stipulated by the legislation would address funds for the program and
appropriate staff transfer.
The legislation expands the responsibilities of the agency administering
the program, however, and this expansion would require new activities by
TEA. Since the agency does not currently engage in any such activities,
this estimate assumes that the agency would need additional staff and
resources to carry out the new duties. Therefore, the general revenue
impact is related to the outreach efforts required in the bill, which
exceed the available federal funding related to this program.
TEA would be required to ensure access of students in certain districts
have access to the Summer Food Service Program and to encourage
participation in the program by other entities, including non-school
organizations. The bill apparently requires each district with a
concentration of 60% or more educationally disadvantaged (low-income)
students to serve as a program sponsor, unless a waiver is granted. TEA
is directed to coordinate the summer program with other school district
nutritional programs. A report must also be provided by November 1 of
each even-numbered year to the Governor's Office of Budget and Planning,
Legislative Budget Board, and the state auditor concerning efforts to
provide the summer program.
Methodology
All funds, obligations, and contracts, property and records of TDHS
related to the Summer Food Service Program would be transferred to TEA.
All employees of the TDHS who primarily perform duties related to this
program would become employees of the TEA.
TDHS currently has 10 employees in the Austin area who on this program.
Since the Program only operates in the summer, the majority of these
employees only work on the Program for approximately eight months
(January-August). Since the bill includes a significant outreach
provision, it is estimated that TEA would have 15 staff working twelve
months of the year to comply with this provision and to administer the
existing program. This staffing would largely represent the conversion
of the 16 part-time individuals (10 FTEs) converting to full-time,
full-year status at a cost of approximately $182,000 per year. The
program also has compliance monitoring and site inspection components,
and this estimate increases the program's current travel budget of
$33,000 to $60,000 to comply with the outreach requirement. Additional
office space would have to be secured for the 15 staff, at an estimated
cost of $30,000 per year.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, CT, RN, UP