LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 29, 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.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2355, As Introduced:  negative impact of $(1,078,918) 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                           $(350,329)  *
          *       2001                            (728,589)  *
          *       2002                            (854,306)  *
          *       2003                            (940,453)  *
          *       2004                          (1,026,740)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from    Probable Savings/(Cost) from   *
* Year         General Revenue Fund               Federal Funds           *
*                      0001                            0555               *
*  2000                        $(350,329)                      $(558,437) *
*  2001                         (728,589)                     (1,156,993) *
*  2002                         (854,306)                     (1,356,632) *
*  2003                         (940,453)                     (1,493,431) *
*  2004                       (1,026,740)                     (1,630,455) *
***************************************************************************
  
Fiscal Analysis
  
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 if the child is receiving supplemental security income
from the federal government.  The bill would expand eligibility to
include children who: 1) are 2 years of age or older and belong to a
minority group, 2) are 6 years of age or older, 3) have certain
disabilities, or 4) belong to a sibling group being placed together.  It
would also authorize the state to provide adoption subsidy payments
after a child's 18th birthday if the child continues to be eligible for
the payments under federal law.
  
  
Methodology
  
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 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.  The number of adoption subsidy payments
will rise gradually as the new children enter and remain in the system.

PRS estimates that the number of children receiving adoption subsidy
payments after their 18th birthday will rise from 320 for fiscal year
2000 to 389 for fiscal year 2004.  The adoption subsidy payments will
continue for variable lengths-of-time ranging from 6 to 24 month.

It is assumed that the average monthly adoption subsidy payment will be
$426 and the method-of-financing will include federal entitlement
revenue from the Title IV-E Adoption Assistance Program and matching
General Revenue funds.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, MD, NM