LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 27, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB478 by Naishtat (Relating to identifying and
addressing the needs of certain recipients of financial
assistance.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB478, Committee Report 1st House, Substituted: negative impact *
* of $(539,257) 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 $(282,124) *
* 2003 (257,133) *
* 2004 (258,276) *
* 2005 (252,042) *
* 2006 (249,029) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from GR Change in Number of State *
* Year MOE for Temporary Assistance Employees from FY 2001 *
* for Needy Families *
* 0759 *
* 2002 $(282,124) 4.0 *
* 2003 (257,133) 4.0 *
* 2004 (258,276) 4.0 *
* 2005 (252,042) 4.0 *
* 2006 (249,029) 4.0 *
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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 be available, General Revenue costs assumed above could be
financed with TANF federal funds.
Fiscal Analysis
Section 2 of the bill amends Chapter 31 , Subchapter A, of the Human
Resources Code by adding Section 31.00331 requiring the Department of
Human Services (DHS) to conduct a case review of TANF recipients prior
to applying a sanction or penalty for noncompliance with Texas Health
Steps, school attendance, or parenting skills (effective September 1,
2001). Grant amounts would increase by approximately $100,000 each
year, with the remaining cost attributable to 4 additional employees.
Methodology
DHS determined the number of new penalties in FY 2000 for noncompliance
with Texas Health Steps, school attendance, and parenting skills. The
TANF growth rate was applied, and it was assumed that 15% of cases with
penalties will leave the rolls prior to review. It was assumed that
each case review would take 30 minutes, and that 10% of the cases comply
after the review and referral, thus increasing the grant amount.
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, KE