LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 28, 1999
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3639 by Naishtat (relating to eligibility for and the
provision of services and programs for needy people and
to the duty of parents to support their children to
prevent reliance on programs for needy people; provdiing
penalties), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3639, Committee Report 1st House, Substituted: negative impact *
* of $(2,820,417) 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 $680,896 *
* 2001 (3,501,313) *
* 2002 (7,205,548) *
* 2003 (6,664,675) *
* 2004 (5,908,840) *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year (Cost) to Savings to (Cost) to Savings to Number of *
* General General Federal Federal State *
* Revenue Revenue Funds Funds Employees *
* Fund Fund (Medicaid) (Medicaid) from FY 1999 *
* (Medicaid (Medicaid 0555 0555 *
* Match) Match) *
* 0001 0001 *
* 2000 $0 $680,896 $0 $1,064,991 166.0 *
* 2001 (4,154,963) 653,650 (6,498,788) 1,022,375 149.0 *
* 2002 (8,309,925) 1,104,377 1,727,359 134.0 *
* (12,997,575) *
* 2003 (8,309,925) 1,645,250 2,573,340 121.0 *
* (12,997,575) *
* 2004 (8,309,925) 2,401,085 3,755,543 109.0 *
* (12,997,575) *
***********************************************************************
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*Fiscal Probable (Cost) to Federal Probable Savings to Federal *
* Year Funds (TANF) Funds (TANF) *
* 0555 0555 *
* 2000 $(32,553,440) $2,193,225 *
* 2001 (48,633,177) 5,766,784 *
* 2002 (58,198,670) 7,766,784 *
* 2003 (56,310,986) 8,566,784 *
* 2004 (56,541,077) 8,566,784 *
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Technology Impact
The bill would require programming changes to information systems at the
Department of Human Services (DHS). It is assumed changes could be
funded within existing resources.
Fiscal Analysis
The bill would make numerous changes to eligibility and benefit policies
for financial assistance (TANF grant) and related benefits. Section 1.01
would apply sanctions for non-compliance with responsibility agreement
provisions to the entire family (under certain circumstances) and would
result in a savings. Section 1.02 would require the agency to perform
reviews and develop compliance plans for cases subject to certain
sanctions, requiring additional expenditures and additional staff.
Section 1.03 would make ineligible certain applicants for TANF (and Food
Stamp) benefits, resulting in a savings to the TANF program and to the
Medicaid program. Section 3.01 would change the earned income disregard,
resulting in an increased cost to the TANF and Medicaid programs.
Section 3.03 would limit work requirement exemptions, resulting in
savings in TANF grant benefits but increased costs for child care and
employment services (provided by the Workforce Commission). Section
5.01 would establish financial incentives to encourage TANF clients to
comply with Title IV-D requirements, resulting in increased costs.
Section 6.01 would require DHS to calculate benefits from the date of
application, resulting in increased costs.
Section 3.02 would require DHS, the Workforce Commission, or local
workforce development boards to perform post-employment assessments.
Section 4.01 would require DHS to perform new assessment and referral
activities for certain TANF cases. It is assumed that these services
would be limited in scope and duration. Consequently, agencies could
comply with the provisions without requiring additional resources.
Methodology
Section 1.01 would result in a savings of $1.7 million TANF Federal Funds
in fiscal year 2000, $5 million in 2001, $6.3 million in 2002, $6.8
million in each subsequent year.
Section 1.02 would require additional FTEs: 166 in fiscal year 2000, 149
in 2001, 134 in 2002, 121 in 2003, and 109 in 2004. Associated costs
would total approximately $5 million in fiscal year 2000, but decline to
$3.3 million in 2004.
Section 1.03 would result in a savings of approximately $500,000 in TANF
Federal Funds per year. It is assumed that adults denied TANF benefits
would not qualify for Medicaid benefits either, resulting in a savings of
approximately $1 million per year. Savings to the Medicaid program
would be divided between General Revenue (39 percent) and matching
Federal Funds (61 percent).
Section 3.01 would cause TANF clients to receive benefits for a longer
period of time, resulting in a cost to TANF Federal Funds of
approximately $10 million in fiscal year 2000, and $19 million in each
subsequent year. TANF clients would also receive Medicaid benefits for a
longer period of time, resulting in a cost of $10.7 million in fiscal
year 2001, and $21.3 million in each subsequent year.
Section 3.03 would increase the number of TANF clients needing
employment services, resulting in a cost to TANF Federal Funds of $.4
million in fiscal year 2000, $.9 million in 2001, and $1.5 million in
each subsequent year. The bill would increase the number of children
needing child care, resulting in a cost to TANF Federal Funds (or TANF
transferred to the Child Care and Development Fund block grant) of $6.5
million in fiscal year 2000, 14.3 million in 2001, and $25.2 million in
each subsequent year.
These costs would be partly offset by savings in TANF grant benefits ($.3
million in fiscal year 2001, .7 million in 2003, and $1.2 million in
each subsequent year) and Medicaid benefits ($1.2 million in fiscal year
2002, $2.5 million in 2003, and $4.5 million in 2004).
Section 5.01 would result in a cost to TANF federal Funds of $1.8 million
per year.
Section 6.01 would result in a cost to TANF federal Funds of $8.7 million
in fiscal year 2000, declining to $5.6 million in 2004.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TP, PP