LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 19, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB165 by Keffer (Relating to eligibility for Temporary
Assistance for Needy Families benefits.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB165, As Introduced: negative impact of $(12,575,841) 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:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(6,150,657) *
* 2003 (6,425,184) *
* 2004 (7,849,144) *
* 2005 (7,911,260) *
* 2006 (7,974,718) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from Federal from Federal from GR Match from GR Match *
* Funds - Federal Funds - Federal for Medicaid for Medicaid *
* 0555 0555 0758 0758 *
* 2002 $6,694,828 $(365,519) $925,377 $(241,655) *
* 2003 10,825,098 (465,707) 1,461,112 (309,438) *
* 2004 11,124,473 (465,834) 1,462,890 (309,652) *
* 2005 11,424,183 (466,245) 1,463,696 (309,924) *
* 2006 11,725,381 (466,656) 1,464,907 (310,197) *
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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 be available, $6,834,379 in General Revenue costs assumed
for FY 2002 and $7,576,858 for FY 2003 could be financed with TANF
federal funds.
*****************************************************
* Fiscal Year Probable Savings/(Cost) from GR *
* MOE for Temporary Assistance for *
* Needy Families *
* 0759 *
* 2002 $(6,834,379) *
* 2003 (7,576,858) *
* 2004 (9,002,382) *
* 2005 (9,065,032) *
* 2006 (9,129,428) *
*****************************************************
Technology Impact
An estimated $198,550 for 1,950 hours of programming would be required by
the Department of Human Services (DHS) to implement the provisions of
the bill.
Fiscal Analysis
The bill amends several sections of Chapter 31 of the Human Resources
Code. Section 2 of the bill amends Sections 31.0032(a) and (c) to
require DHS or the Title IV-D agency to apply full family sanctions for
failure to comply with a Personal Responsibility Agreement (PRA).
Section 3 of the bill amends Section 31.00321 to require DHS to apply
escalating sanctions for failure to comply with the work requirements of
the PRA. On a person's first failure or refusal, the adult member's
financial assistance would be deducted from the family's monthly
assistance for one month or until compliance, whichever is later. After
three months a full family sanction would be applied, and the family
could reapply after one month. On a person's second failure or refusal,
the adult member's assistance would be deducted for two months or until
compliance, whichever is later. After three months a full family
sanction would be applied, and the family could reapply after two months.
On a person's third or subsequent failure or refusal, a full family
sanction would be applied and the family could reapply after six months.
Section 4 of the bill amends Section 31.0033(c) to require DHS to apply
appropriate sanctions on the person or the family if good cause for
noncompliance is not shown. Section 5 amends Sec. 31.00331 to require
DHS, the Texas Workforce Commission (TWC) or a local workforce
development board to conduct a case review of families sanctioned for
failure to comply with work requirements, without good cause. The review
would have to be conducted within five days of the date benefits were
reduced, would identify barriers contributing to the person's inability
to comply, and would determine appropriate preventive and support
services for referral. DHS would be required to provide preventive and
support services if community-based services were not available,
Section 6 of the bill adds Section 31.0038, to require DHS to adopt rules
that would disregard a significant portion of earned income in
determining financial assistance for six months following employment.
All provisions of the bill would become effective September 1, 2001.
Methodology
Data on sanctions over a 12-month period were analyzed to estimate the
number of cases that would be denied a full family sanction. Estimates
were adjusted to reflect increases in the number of cases with a person
required to participate in work activities. It was assumed there would
be one sanctioned person per TANF basic case with a sanction and 1.3
sanctioned persons per TANF-UP case with a sanction. The average grant
was adjusted to reflect maintaining benefits at 17% of the federal
poverty level.
It was assumed the number of clients receiving an earned income disregard
(EID) increases 8% in FY 2002 and 25.3% in FY 2003, then remaining level
through FY 2006. A retention factor was applied over the period of the
EID reflecting current experience of 32.2% of clients remaining on the
caseload through the fourth month. It was assumed the maximum gross
income limit currently in effect would continue and the EID level would
continue to be 90% of earnings. In addition to cash assistance, it was
assumed clients would receive an additional two months of child care for
one child 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. Medicaid costs
reflect insured services, cost-reimbursed services, vendor drug and
medical transportation.
Data are not available to estimate the cost of requiring DHS to provide
preventive and support services, in the absence of available
community-based services, but could have a significant fiscal impact.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 501 Texas Department of Health, 324 Texas
Department of Human Services, 320 Texas Workforce
Commission
LBB Staff: JK, HD, KE