LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 9, 1999
TO: Honorable Jane Nelson, Chair, Senate Committee on Health
Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB64 by Nelson (Relating to TANF and Medicaid benefits
for additional children born to TANF recipients.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB64, As Introduced: 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 (Cost) to Probable Savings to Change in Number of *
* Year Federal Funds (TANF) Federal Funds (TANF) State Employees from *
* 0555 0555 FY 1999 *
* 2000 $(366,730) $38,396 0.0 *
* 2001 0 1,126,454 (7.0) *
* 2002 0 1,901,431 (11.0) *
* 2003 0 2,166,479 (13.0) *
* 2004 0 2,241,864 (13.0) *
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Technology Impact
The bill would require programming changes to information systems at the
Department of Human Services (DHS). The department estimates the effort
would require 3,500 hours at an expense of $104.78 per hour, totaling
$366,730.
Fiscal Analysis
The bill would amend the Human Resources Code by adding Section 31.0038.
The bill would require DHS to deny financial assistance for the support
of a child born to a recipient of financial assistance at least 10 months
after the date on which the recipient initially began receiving
assistance. The prohibition would not apply to a child born to a
recipient who reapplies for financial assistance after not receiving
assistance for the 12 consecutive months preceding the date of
reapplication.
The bill would require other changes in the way DHS calculates financial
assistance for families. If an adult recipient becomes the parent of
another child while receiving benefits, the department would be required
to deduct the earned income disregard allowable under federal law, and
increase the amount of the earned income disregard for an employed
recipient in an amount that equals 50 percent of the amount granted
under Section 31.003 of the Human Resources Code (adjusted for family
size). It is assumed this provision would apply to families receiving
assistance that increase in size due to adoption. It is also assumed
that this occurrence would be sufficiently rare as to have no fiscal
impact.
Methodology
Assumptions related to Temporary Assistance for Needy Families (TANF)
grants:
1) It is estimated the bill would reduce the number of children
receiving financial assistance (compared to projections under current
statute) by 96 in fiscal year 2000, 2,346 in 2001, 3,960 in 2002, 4,511
in 2003, and 4,669 in 2004.
2) The savings per child per month would average $33.33.
3) It is assumed the state would meet its maintenance of effort (general
revenue) requirements in order to secure the state's TANF block grant.
Any savings realized in the strategy would impact TANF federal funding.
Assumptions related to eligibility determination:
1) One-time programming changes would cost $366,730 in fiscal year 2000,
and could be paid with TANF federal funds.
2) One FTE position for every reduction of 350 clients would result.
Seven FTE positions would not be required in fiscal year 2001, 11 in
2002, 13 in 2003, and 13 in 2004.
3) The average annual savings in salary per FTE would total $22,000.
4) The average annual savings in fringe benefits would total 27.59
percent of salary.
5) All savings would impact TANF federal funding.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TP, AZ, PP