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