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: SB1423 by West, Royce (Relating to providing supplemental financial assistance and services to certain grandparents.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1423, 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 Year Probable Savings/(Cost) from * * Federal Funds (TANF) * * 0555 * * 2000 $(3,032,452) * * 2001 (1,969,309) * * 2002 (1,811,867) * * 2003 (1,667,012) * * 2004 (1,533,738) * ***************************************************** Technology Impact The bill would require approximately 8,000 hours of programming on information systems at the Department of Human Services. At $105 per hour, the cost would total $840,000. Fiscal Analysis The bill would add Section 31.0041 to the Human Resources Code, requiring the Department of Human Services to provide supplemental financial assistance in addition to the amount of financial assistance granted for the support of a dependent child to a recipient who is 45 years of age or older and is the grandparent of a dependent child who lives in the recipient's residence. Supplemental financial assistance would include a one-time cash payment of $1,000 and an annual school subsidy of $69.84 for each dependent child who lives at the recipient's residence. Methodology Assumptions: 1) One-time automation costs would total $840,000 in fiscal year 2000. 2) Supplemental benefits would total $2,165,008 in fiscal year 2000, $1,944,658 in 2001, $1,789,187 in 2002, $1,646,145 in 2003, and $1,514,539 in 2004. 3) Benefits would be delivered through the electronic benefits transfer (EBT) system. The cost of providing benefits through the system would total $27,444 in fiscal year 2000, $24,651 in 2001, $22,680 in 2002, $20,867 in 2003, and $19,199 in 2004. 4) All expenses would be paid with TANF federal funds. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TH, PP