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
  
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*  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:
  
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*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