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: HB475 by Naishtat (Relating to services and programs
provided under and eligibility for temporary assistance
for needy families and for food stamps.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB475, As Introduced: negative impact of $(19,027,140) 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:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(6,810,431) *
* 2003 (12,216,709) *
* 2004 (14,072,300) *
* 2005 (14,741,799) *
* 2006 (15,135,336) *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year Savings/ Savings/ Savings/ Savings/ Number of *
* (Cost) from (Cost) from (Cost) from (Cost) from State *
* General GR Match GR MOE for Federal Employees *
* Revenue for Temporary Funds - from FY 2001 *
* Fund Medicaid Assistance Federal *
* 0001 0758 for Needy 0555 *
* Families *
* 0759 *
* 2002 83.0 *
* $(1,010,170)$(2,475,863)$(3,324,398)$(4,431,981) *
* 2003 (1,480,101) (4,474,806) (6,261,802) (7,737,174) 135.0 *
* 2004 (1,605,825) (5,103,276) (7,363,199) (8,765,495) 153.0 *
* 2005 (1,609,375) (5,283,671) (7,848,753) (9,039,167) 156.0 *
* 2006 (1,626,526) (5,352,854) (8,155,956) (9,154,799) 158.0 *
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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, $3,324,398 in FY 2002 and $6,261,802 in
FY 2003 of General Revenue costs assumed above could be financed with
TANF federal funds. Although funds to administer the Food Stamp program
are appropriated in the state budget, Food Stamp benefits to clients are
not. However, the estimated value of Food Stamps benefits would increase
by $19.1 million in FY 2002, rising to $46.7 million by FY 2006. Food
Stamp benefits are 100% federally funded.
Technology Impact
An estimated 120 hours of MIS support to modify the Generic Worksheet at
$120 per hour totals $13,200.
Fiscal Analysis
Section 3 of the bill would change TANF eligibility criteria regarding
treatment of the value of vehicles to exclude the entire fair market
value of one vehicle and the fair market value of any other vehicle up
to $5000. Under Section 4 of the bill this standard would also be used
in the Food Stamp program--a state option in new federal legislation
(Public Law 106-387). Both provisions would be effective September 1,
2001.
Methodology
Section 3 expands eligibility for TANF, which thereby extends Medicaid
coverage. It is assumed that 80% of 320 TANF applicants per month denied
assistance due to resources are attributable to the current vehicle
limits. A 91% retention rate for TANF cases is assumed, resulting in the
following additional TANF cases: 1,530 in FY 2002; 2,917 in FY 2003,
3,369 in FY 2004, 3,516 in FY 2005, and 3,564 in FY 2006. The average
TANF grant per case is estimated at $155.33 per month, rising 3% per year
to remain at 17% of the federal poverty level.
For Medicaid purposes, children would have been eligible under non-TANF
categories, so the impact of the increase in the vehicle limit on the
Medicaid program is assumed to be one adult in each of the additional
TANF cases. Medicaid costs reflect insured services, cost-reimbursed
services, vendor drug and medical transportation. Federal Medicaid
reimbursements included above total $3.4 million in FY 2002, $6.3 million
in FY 2003, $7.2 million in FY 2004, $7.4 million in FY 2005 and $7.5
million in FY 2006. Federal Food Stamp reimbursements included above
total $1.0 million in FY 2002, $1.5 million in FY 2003, and $1.6 million
in FYs 2004, 2005 and 2006.
Section 4 expands eligibility for Food Stamps. It is assumed that 80% of
2,000 Food Stamp applicants per month denied benefits due to resources
are attributable to the current vehicle limits. A 91% retention rate
for Food Stamp cases is assumed, resulting in 5,950 additional cases in
FY 2002, rising to 13,478 in FY 2006. The average Food Stamp grant per
case is estimated at $206.05 per month, increasing 2% per year for cost
of living adjustments.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 324 Texas Department of Human Services, 501 Texas
Department of Health, 320 Texas Workforce Commission
LBB Staff: JK, HD, KE