LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 25, 1999
TO: Honorable Jane Nelson, Chair, Senate Committee on Health
Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB51 by Nelson (Relating to prohibiting persons
convicted of certain drug-related offenses from receiving
TANF benefits), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB51, Committee Report 1st House, Substituted: positive impact of *
* $9,415,266 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 $4,803,697 *
* 2001 4,611,569 *
* 2002 4,611,569 *
* 2003 4,611,569 *
* 2004 4,611,569 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Savings to Savings to Savings to Number of State *
* General Revenue Federal Funds Federal Funds Employees from *
* Fund (Medicaid (Medicaid) (TANF) FY 1999 *
* Match) 0555 0555 *
* 0001 *
* 2000 $4,803,697 $7,364,535 $3,816,487 (34.5) *
* 2001 4,611,569 6,816,514 3,619,145 (33.1) *
* 2002 4,611,569 6,816,514 3,619,145 (33.1) *
* 2003 4,611,569 6,816,514 3,619,145 (33.1) *
* 2004 4,611,569 6,816,514 3,619,145 (33.1) *
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Fiscal Analysis
The bill would add Section 31.0038 to the Human Resources Code, making
ineligible for financial assistance a person who is convicted, for
conduct occurring after August 1996, of drug-related felony offenses.
Methodology
Assumptions related to Temporary Assistance for Needy Families (TANF)
grants:
1) The number of adult TANF recipients under current eligibility
criteria would be 103,468 in fiscal year 2000, and 99,330 in each
subsequent year.
2) Five percent of adults each year will be ineligible due to a
drug-related felony conviction. Consequently, the number of adult TANF
recipients would be reduced by 5,173 in fiscal year 2000, and by 4,966 in
each subsequent year.
3) The average monthly TANF grant per recipient would be $52.97 in
fiscal year 2000, and $51.47 in each subsequent year. The annual savings
would be $3,228,426 in fiscal year 2000, and $3,112,204 in each
subsequent year.
4) It is assumed the state would meet its General Revenue maintenance of
effort requirement in order to secure the state's TANF block grant.
Therefore, any savings realized would impact TANF federal funds.
Assumptions related to eligibility determination:
1) One FTE position would be eliminated each year for every 300 fewer
TANF recipients. Consequently, the number of FTE positions would be
reduced by 17.2 in fiscal year 2000, and 16.6 in each subsequent year
(compared to 1999).
2) The annual salary for an eligibility worker would be $24,000. Fringe
benefits would total 27.59 percent of annual salary. Consequently, the
annual savings would be $528,060 in fiscal year 2000, and $506,940 in
each subsequent year. All savings would impact TANF federal funds.
3) One FTE position would be eliminated each year for every 300 fewer
Medicaid clients. Consequently, the number of FTE positions would be
reduced by 17.2 in fiscal year 2000, and 16.6 in each subsequent year
(compared to 1999).
4) The annual salary for an eligibility worker would be $24,000. Fringe
benefits would total 27.59 percent of annual salary. Consequently, the
annual savings would be $528,060 in fiscal year 2000, and $506,940 in
each subsequent year. Savings would impact General Revenue and matching
federal funds equally.
Assumptions related to Medicaid benefits (paid by the Department of
Health):
1) The number of adults deemed ineligible for TANF grants would also be
ineligible for medical assistance.
2) The average monthly Medicaid benefit (premium and prescriptions)
would cost $187.5. Consequently, the annual savings would be $11,640,173
in fiscal year 2000, and $11,714,614 in each subsequent year.
3) Approximately, 39 percent of the savings would impact General
Revenue, and 61 percent would impact matching federal funds.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TP, AZ, PP