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