LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 30, 1999
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2702 by Chavez (Relating to nutritional assistance for
certain legal immigrants.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2702, As Introduced: negative impact of $(6,761,002) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(2,662,608) *
* 2001 (4,098,394) *
* 2002 (3,311,909) *
* 2003 (2,803,952) *
* 2004 (2,500,832) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2000 $(2,662,608) *
* 2001 (4,098,394) *
* 2002 (3,311,909) *
* 2003 (2,803,952) *
* 2004 (2,500,832) *
*****************************************************
Technology Impact
The bill would require programming changes to information systems at the
Department of Human Services (DHS). These systems will not be millennium
compliant until September 1, 1999. If millennium efforts are delayed,
implementation of the bill would be pushed back.
It is estimated the bill would require approximately 6,000 hours of
programming at $105 per hour. The total cost of $630,000 would be paid
with General Revenue. Programming would be completed and enrollment
would begin March 1, 2000.
Fiscal Analysis
The bill would add Section 33.0024 to the Human Resources Code. The bill
would require DHS to develop by rule and implement a state immigrant
food assistance program to provide nutritional assistance to a lawfully
present immigrant who (1) is a qualified alien; (2) meets all
eligibility requirements of the federal food stamp program, but is not
eligible for assistance solely because of 8 U.S.C. Section 1612; and
meets one of the following criteria: (a) is younger than 18 years of
age and entered the United states after August 22, 1996; (b) is 60 years
of age or older and entered the United States before August 23, 1996; or
is disabled and entered the United States after August 22, 1996. The
bill would require DHS to use the same rules with respect to eligibility
procedures and benefit levels that are used in administering the federal
food stamp program.
Methodology
Assumptions:
1) Clients receiving benefits under the current state immigrant food
assistance program are excluded from the following cost estimate in order
to determine the incremental cost of the bill. Approximately 350
clients receive $350,000 of benefits each year under the current state
immigrant food assistance program. Benefits are paid with General
Revenue.
2) It is estimated that 5,464 average monthly clients would qualify for
benefits under the new state immigrant food assistance program in fiscal
year 2000. Due to mid-year implementation associated with programming
changes, the number of clients would be reduced by one-half in 2000.
Approximately 5,404 average monthly clients would receive benefits in
2001, 4,284 in 2002, 3,558 in 2003, and 3,113 in 2004,
3) Monthly benefits would average $60 per person in 2000, $61.20 in
2001, $62.42 in 2002, $63.67 in 2003, and $64.95 in 2004. (Benefits are
assumed to increase by 2 percent each year since they would be tied to
federal levels.)
4) One-time programming costs would total $630,000 in 2000.
5) Benefits would be delivered using the Electronic Benefit Transfer
(EBT) system. Each transaction would cost $2.00. The number of
transactions would equal the number of average monthly clients per year
multiplied by 12 months.
6) All costs would be paid by General Revenue.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TP, PP