LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                                May 3, 1999
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on
               Jurisprudence
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2354  by Goodman (Relating to the liability of the
               Title IV-D agency for certain costs incurred in providing
               child support services.), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2354, As Engrossed:  negative impact of $(11,045,705) 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.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                         $(5,414,561)  *
          *       2001                          (5,631,144)  *
          *       2002                          (5,856,390)  *
          *       2003                          (6,090,645)  *
          *       2004                          (6,334,271)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                             $(5,414,561) *
         *      2001                              (5,631,144) *
         *      2002                              (5,856,390) *
         *      2003                              (6,090,645) *
         *      2004                              (6,334,271) *
         *****************************************************
  
Fiscal Analysis
  
The bill deletes the current statutory provision that holds the Office of
the Attorney General (OAG) liable for the state's share of fees and
costs related to the filing of Title IV-D cases only if the agency
receives a specific appropriation for that purpose. The proposed changes
to the statute would require the OAG to pay those costs even in the
absence of a specific appropriation.
  
  
Methodology
  
Currently, the OAG does not receive an appropriation to cover the state's
share of fees and costs for filing Title IV-D cases and, therefore, does
not reimburse the counties for those costs.  As a result of the bill,
the agency would be required to begin paying the state's share.  These
costs are estimated to increase from $5.4 million in FY2000 to $6.3
million in FY2004.  These estimates are based on the amounts that are
currently being reimbursed by the federal government that represent the
federal share (approximately 66%) of the expenses.  The state is
responsible for the other 34%.
  
  
Local Government Impact
  
Since the OAG would now be responsible for paying the state's share of
filing fees and costs, the counties would incur savings equivalent to
the amounts shown above for the state's cost.
  
  
Source Agencies:   302   Office Of The Attorney General
LBB Staff:         JK, PE, MD, SC