LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 19, 2001 TO: Honorable Elliott Naishtat, Chair, House Committee on Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: HB474 by Naishtat (Relating to eligibility recertification requirements for certain recipients of food stamps.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB474, As Introduced: positive impact of $1,716,951 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $995,003 * * 2003 721,948 * * 2004 673,159 * * 2005 691,001 * * 2006 691,001 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Change in Number of * * Year Savings/(Cost) from Savings/(Cost) from State Employees from * * General Revenue Fund Federal Funds - FY 2001 * * 0001 Federal * * 0555 * * 2002 $995,003 $995,003 (60.0) * * 2003 721,948 721,948 (43.0) * * 2004 673,159 673,159 (40.0) * * 2005 691,001 691,001 (41.0) * * 2006 691,001 691,001 (41.0) * ************************************************************************** Fiscal Analysis The bill would amend Chapter 33, Human Resources Code by adding Section 33.015. The proposed section would allow the Department of Human Services (DHS) to conduct a recertification interview for food stamp recipients by telephone if the recipient and all household members are elderly or disabled and have no earned income, or if the recipient claims a hardship as defined by the department. The bill would require recipients have at least one face-to-face interview per year at a local office. The effective date of the bill is September 1, 2001. Methodology DHS states their cost estimate used data from November 2000 to determine the percent of the Food Stamp (FS) caseload where someone lives in a rural area, works, is ill or is needed to care for an ill family member, or is elderly or disabled and has no income. DHS indicated they did not have information on people with transportation difficulties. About half of the FS cases meet one of the above criteria. DHS assumed that seven percent of those that meet the criteria have a 12 month certification period and would not be impacted by the provisions of the bill. DHS also assumed that 38 percent of those meeting the criteria would have one phone interview a year because they have a six month review schedule and 55 percent would have three phone interviews a year because they average a three month review schedule. DHS also assumed that 20 percent would not complete the phone interview and would have the face-to-face interview. DHS estimated that a net savings of about 11.5 minutes would occur but would be offset by the need for an additional five minutes to handle the increase in the number of pended cases, as workers would have to wait for information from the clients before completing the recertification. In addition, DHS estimated that about half of those denied for not keeping their appointment already come back at a later time; but about 40 percent of the remaining families would complete a phone-in interview and be certified. DHS assumed a reduction in workload due to Food Stamp recertifications being done over the phone rather than through face-to-face interviews. FTE savings are 50 percent state, 50 percent federal. Client benefits accruing to qualified clients not reflected above are approximately $8.7 million in FY 2002 and $14.9 million in FY 2003, in federal funds. Client benefits for fiscal years 2003-06 are approximately $16.5 million each year in federal funds. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 324 Texas Department of Human Services LBB Staff: JK, HD, KF, ML