LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 12, 1999
TO: Honorable David Sibley, Chair, Senate Committee on
Economic Development
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3333 by Tillery (relating to certain duties of local
workforce development boards in connection with the
provision of child care), Committee Report 2nd House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3333, Committee Report 2nd House, Substituted: positive impact *
* of $0 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 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Workforce Commission Federal *
* Account - Federal *
* 5026 *
* 2000 $(5,075,734) *
* 2001 (5,207,838) *
* 2002 (5,228,006) *
* 2003 (5,364,073) *
* 2004 (5,384,846) *
*****************************************************
Fiscal Analysis
The bill establishes graduated reimbursement rates for child care
providers under the Texas Workforce Commission designated vendor program
effective September 1, 1999. The highest reimbursement rate would be
assigned to child care providers accredited by the National Association
for the Edcuation of Young Children. The minimum reimbursement rate for
child care would be 80 percent of the local rate based on a current
market survey.
Methodology
The Texas Workforce Commission estimates that 24.5 percent of children in
child care are financed with Child Care and Development Fund (CCDF)
funding. Presently reimbursement rates for child care providers are set
at 75 percent of a local rate based on a market survey. At 80 percent
of the local market rate, the cost to CCDF funding would increase by a
minimum of 6.67 percent.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TH, HL