LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 15, 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), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* SB13, Committee Report 1st House, Substituted: negative impact of *
* $(7,094,588) 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 (7,094,588) *
* 2002 (6,949,800) *
* 2003 (6,805,013) *
* 2004 (6,370,650) *
****************************************************
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 $(24,286,500) *
* 2001 (7,094,588) (11,096,663) (23,040,000) *
* 2002 (6,949,800) (10,870,200) (22,560,000) *
* 2003 (6,805,013) (10,643,738) (21,120,000) *
* 2004 (6,370,650) (9,964,350) (21,120,000) *
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Technology Impact
The bill would require approximately 7,300 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 100 percent
during the first six months a family (receiving financial assistance) has
earned income. This would increase the average monthly number of
Temporary Assistance for Needy Families (TANF) recipients. The bill
could help to reduce the phenomenon of families cycling on and off the
TANF rolls by establishing a longer transition period to financial
independence.
The bill would increase the average monthly number of adults receiving
Medicaid benefits. (No change in the number of children receiving
Medicaid benefits is assumed, as children losing TANF benefits are
likely to qualify for Medicaid benefits under another category.) Adults
who stay on the TANF rolls longer because of the new earned income
disregard would also receive Medicaid benefits for a longer period.
However, the impact to the Medicaid program would be delayed by twelve
months--the length of time adults who leave the TANF rolls are provided
transitional Medicaid benefits.
Methodology
Assumptions related to the TANF Grant provided by DHS:
1) The number of average monthly recipients (adults and children) would
increase by 24,500 in fiscal year 2000, 24,000 in 2001, 23,500 in 2002,
and 22,000 in each subsequent year.
2) The additional average monthly recipients would receive an average
monthly grant of $80.
3) One-time programming changes would cost $766,000 in fiscal year 2000.
4) It is assumed all costs would be paid with TANF federal funds.
Assumptions related to Medicaid benefits provided by the Department of
Health:
1) Adults represent approximately one-third of the additional TANF
recipients. As previously noted, there would be a one year lag between
the impact to the TANF program and the impact to the Medicaid program.
Therefore, the average monthly number of Medicaid clients would increase
by approximately 8,085 in fiscal year 2001, 7,920 in 2002, 7,755 in 2003,
and 7,260 in 2004.
2) The average monthly Medicaid benefit (prescriptions and premium)
would total $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 Department of Human Services
LBB Staff: JK, BB, PP