LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 14, 1999
TO: Honorable Judith Zaffirini, Chair, Senate Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB13 by Zaffirini (Relating to the consideration of
income earned by certain recipients of Temporary
Assistance for Needy Families benefits for eligibility
determination purposes.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB13, As Introduced: negative impact of $(6,054,750) 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 (6,054,750) *
* 2002 (5,921,469) *
* 2003 (5,712,028) *
* 2004 (5,521,627) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Cost to Probable Cost to Probable (Cost) to *
* Year General Revenue Fund Federal Funds Federal Funds (TANF) *
* (Medicaid Match) (Medicaid) 0555 *
* 0001 0555 *
* 2000 $0 $0 $(10,688,100) *
* 2001 (6,054,750) (9,470,250) (9,703,200) *
* 2002 (5,921,469) (9,261,785) (9,360,000) *
* 2003 (5,712,028) (8,934,198) (9,048,000) *
* 2004 (5,521,627) (8,636,392) (9,048,000) *
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Technology Impact
The bill would require approximately 7300 hours of programming to
information systems at the Department of Human Services (DHS). At $105
per hour, programming would total 766,500.
Fiscal Analysis
The bill would amend Section 31.0038 of the Human Resources Code,
requiring DHS to increase the earned income disregard to not more than
90 percent for families receiving financial assistance who have earned
income. This would increase the average monthly number of TANF
recipients and increase the average monthly number of Medicaid clients.
Methodology
Assumptions related to the TANF Grant:
1) The number of average monthly TANF recipients would increase by
15,900 in fiscal year 2000, 15,500 in 2001, 15,000 in 2002, 14,500 in
2003 and 2004 compared to estimates made according to current eligibility
standards.
2) The additional average monthly recipients would receive the current
average monthly benefit of $52.00.
3) One-time programming changes would cost $766,500.
4) It is assumed all cost would be paid with TANF federal funds.
Assumptions related to Medicaid benefits provided by the Department of
Health:
1) The number of average monthly clients would increase by 6,900 in
fiscal year 2001, 6,748 in 2002, 6,509 in 2003, and 6,292 in 2004.
2) The average monthly Medicaid benefit (prescriptions and premium)
would be $187.50.
3) Approximately 39 percent of costs would be paid with general revenue,
and 61 percent with matching federal funds.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 324 Dept Of Human Services, 501 Department Of
Health, 320 Workforce Commission
LBB Staff: JK, TP, PP