LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 9, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB43 by McClendon (Relating to the consideration of
income earned by certain recipients of Temporary
Assistance for Needy Families benefits for eligibility
determination purposes.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB43, As Engrossed: negative impact of $(15,020,140) through the *
* biennium ending August 31, 2003. *
* *
* 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(7,133,844) *
* 2003 (7,886,296) *
* 2004 (9,343,465) *
* 2005 (9,407,263) *
* 2006 (9,472,835) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable *
* Year Savings/(Cost) from Savings/(Cost) from Savings/(Cost) from *
* GR MOE for Temporary GR Match for Federal Funds - *
* Assistance for Needy Medicaid Federal *
* Families 0758 0555 *
* 0759 *
* 2002 $(6,892,189) $(241,655) $(365,519) *
* 2003 (7,576,858) (309,438) (464,707) *
* 2004 (9,033,813) (309,652) (465,834) *
* 2005 (9,097,339) (309,924) (466,245) *
* 2006 (9,162,638) (310,197) (466,656) *
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Given the limited availability of Temporary Assistance for Needy Families
(TANF) federal funds, for the purpose of this fiscal note General
Revenue is assumed as the method of financing. Should additional TANF
federal funds become available, $6,892,189 in FY 2002, and $7,576,858 in
FY 2003, of General Revenue assumed above could be financed with TANF
federal funds.
Technology Impact
An estimated $214,500 for 1,950 hours of programming would be required by
the Department of Human Services to implement the provisions of the
bill.
Fiscal Analysis
The bill would add a new Section 31.0038 to the Human Resources Code and
repeals Section 31.043. The bill requires the Department of Human
Services to exclude 90% of any earned income for a recipient of TANF
when determining eligibility and benefits. The time period of the
earned income disregard is extended from the current four months to six
months. The department may not disregard earned income of a recipient
who left employment voluntarily without good cause while receiving
financial assistance, and the department may not exempt any recipient
from participating in work or employment activities during the period of
the disregard. The bill is effective September 1, 2001.
Methodology
It was assumed the number of clients receiving the earned income
disregard increases 8% in FY 2002, and 25.3% in FY 2003, then remains
almost level through FY 2006. A retention factor was applied over the
period of the earned income disregard, reflecting current experience of
32.2% of clients remaining on the caseload through the fourth month.
In addition to the increase for cash assistance, it was assumed clients
would receive an additional two months of child care at $16.21 per day
for 43.5 days. It was also assumed the client would receive an
additional two months of Choices services at $178.83 per month.
Extending the disregard by two months provides clients two additional
months of Medicaid coverage for the adult family member. Medicaid costs
reflect insured services, cost-reimbursed services, vendor drug and
medical transportation.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 324 Texas Department of Human Services, 320 Texas
Workforce Commission, 501 Texas Department of Health
LBB Staff: JK, HD, KE