LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 3, 1999 TO: Honorable Toby Goodman, Chair, House Committee on Juvenile Justice & Family Issues FROM: John Keel, Director, Legislative Budget Board IN RE: HB2355 by Goodman (Relating to the adoption, protection, and placement of children.), Committee Report 1st House, Substituted ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would authorize the state to provide adoption subsidy payments for a child who is eligible for an adoption subsidy under federal law regardless of whether the state is the managing conservator for the child. The Texas Family Code currently authorizes the state to provide adoption subsidy payments for a child who is not in the state's managing conservatorship only if the child is receiving Supplemental Security Income (SSI) benefits from the federal government. The bill would expand eligibility to include children with special needs who meet federal requirements for the Aid To Families With Dependent Children (now Temporary Assistance for Needy Families) program that were in effect on July 16, 1996, or who would have met these requirements but for removal from the home of a relative. The Department of Protective and Regulatory Services (PRS) estimates that the number of private agency adoptions will remain constant at 1,540 per year through fiscal year 2004. The department also estimates that the number of new children under 18 years old who will begin receiving adoption subsidy payments due to the bill's expanded eligibility will rise from 30 for fiscal year 2000 to 50 for fiscal year 2001 and beyond. All of these children are entitled to receive Medicaid coverage under current federal law. For the 2000-01 biennium, it is assumed that PRS (which is responsible for making adoption subsidy payments) and the Texas Department of Health (which is responsible for making payments associated with the Medicaid program) can absorb the General Revenue costs of the bill within existing resources. These General Revenue costs are estimated to be $148,760 for PRS and $31,252 for the health department. By fiscal year 2004, the General Revenue costs will be much more substantial because children entering the system in prior years will continue to receive adoption subsidy payments and Medicaid coverage. The General Revenue costs for fiscal year 2004 are estimated to be $435,839 for PRS and $94,273 for the health department. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, MD, NM