LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 30, 1999 TO: Honorable Judith Zaffirini, Chair, Senate Committee on Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: SB1158 by Carona (Relating to fraudulent conduct with respect to TANF benefits.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1158, 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. * ************************************************************************** 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: ************************************************************************** *Fiscal Probable Probable Change in Number of * * Year Savings/(Cost) from Savings/(Cost) from State Employees from * * Federal Funds Federal Funds FY 1999 * * 0555 0555 * * 2000 $0 $(630,000) 0.0 * * 2001 13,205,203 0 (18.7) * * 2002 13,205,203 0 (18.7) * * 2003 13,205,203 0 (18.7) * * 2004 13,205,203 0 (18.7) * ************************************************************************** Technology Impact The bill would require 6,000 hours of programming changes. At a cost of $105 per hour, the programming would cost $630,000. Fiscal Analysis The bill would add Section 31.017 to the Human Resources Code. The bill would require the Department of Human Services permanently to disqualify an applicant for financial assistance who is found to have made a false or misleading statement, or withheld or misrepresented information. The bill would also require that a person who is permanently disqualified from receiving financial assistance is also disqualified from receiving medical assistance (Medicaid benefits). This part of the bill could not be implemented without a federal waiver and the fiscal impact is not included in this estimate. Methodology Assumptions related to Temporary Assistance for Needy Families (TANF) Grants: 1) Approximately 5,600 TANF cases (Consisting of one parent and two children) are denied benefits due to fraud each year. Under current statute, the case is denied for one year, after which the family may reapply. 2) The bill would require that the case is denied permanently. 3) The maximum monthly grant for a family of three is $188. Savings would begin one year after implementation and total $12,633,600 per year. 4) It is assumed the state would meet its maintenance of effort requirement in order to secure the TANF block grant. Therefore, any savings would impact TANF federal funds. Assumptions related to eligibility determination: 1) One FTE position would be reduced for every 300 fewer recipients. Annual savings per FTE position include salary of $24.000 and fringe benefits which total 27.59 percent of salary. 2) The Department of Human Services would reduce 18.7 FTE positions in fiscal year 2001 (compared to 1999). The same number would be reduced each subsequent year. 3) Savings would impact TANF federal funds. TANF eligibility determination is funded with TANF federal funds. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TP, PP