LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 26, 1999
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3470 by Olivo (relating to the creation of a Parents
as Scholars pilot program for certain persons eligible to
receive TANF benefits), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3470, Committee Report 1st 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. *
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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:
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*Fiscal Probable Savings to Federal Probable (Cost) to Federal *
* Year Funds (TANF) Funds (TANF) *
* 0555 0555 *
* 2000 $575,328 $(2,505,000) *
* 2001 833,664 (3,000,000) *
* 2002 826,176 (2,930,000) *
* 2003 870,480 (1,996,500) *
* 2004 435,552 0 *
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Technology Impact
The bill would require approximately 6,000 hours of programming changes
to information systems at the Department of Human Services (DHS). At
$105 per hour, the costs would total $630,000.
Fiscal Analysis
The bill would require DHS to establish a Parents as Scholars pilot
program under which a person eligible for financial assistance receives,
in lieu of the Temporary Assistance for Families (TANF) grant, a package
of benefits designed to assist the person in obtaining a postsecondary
degree from an institution of higher education.
The bill would reduce the number of families receiving the TANF grant,
resulting in a savings. However, the cost of the benefit package
designed to assist a person in obtaining a postsecondary degree from an
institution of higher education would offset the savings.
The pilot would expire September 1, 2003.
Methodology
Savings:
1) The bill would reduce the number of TANF recipients by 992 in fiscal
year 2000, 1,336 in 2001, 1,324 in 2003, 1,395 in 2003, and 698 in 2004.
2) The average monthly grant would total $52.00 in each year, resulting
in a savings of $575,328 in fiscal year 2000, $833,664 in 2001, $826,176
in 2002, $870,480 in 2003, and $435,552 in 2004.
3) It is assumed the state would meet its maintenance of effort
requirement to secure the TANF block grant. Therefore, any savings would
free up TANF federal dollars.
Costs:
1) The pilot would serve 313 average monthly clients in fiscal year
2000, 500 in 2001, 455 in 2002, and 333 in 2003.
2) The average monthly benefit would total $500 per month. This amount
includes funding for tuition, fees, textbooks, and child care after
deducting for the maximum potential Pell educational grant.
3) One-time programming costs would total $630,000 in fiscal year 2000.
4) One-time evaluation costs would total $200,000 in fiscal year 2002.
5) It is assumed all costs could be paid with TANF federal funds.
Source Agencies: 324 Department of Human Services
LBB Staff: JK, TP, TH, PP