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:  HB478  by Naishtat (Relating to identifying and
               addressing the needs of certain recipients of financial
               assistance and dependent children of recipients of
               financial assistance.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB478, As Introduced:  negative impact of $(1,960,328) 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                           $(854,840)  *
          *       2003                          (1,105,488)  *
          *       2004                          (1,054,776)  *
          *       2005                          (1,008,175)  *
          *       2006                          (1,005,162)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*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                        $(854,840)                            17.0 *
*  2003                       (1,105,488)                            25.0 *
*  2004                       (1,054,776)                            25.0 *
*  2005                       (1,008,175)                            24.0 *
*  2006                       (1,005,162)                            24.0 *
***************************************************************************
  
Given the limited availability of Temporary Assistance for Needy Families
(TANF) federal funds, for the purposes 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.
  
Fiscal Analysis
  
The bill would require 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).  The bill also requires
DHS to develop and implement a needs assessment and referral for
children of TANF recipients (effective January 1, 2002).
  
  
Methodology
  
It is assumed that 30 minutes will be required to conduct the adult case
review and 15 minutes to conduct the needs assessment and referral for
children, and that 25% of children will require a needs assessment.  It
is assumed that 15% of cases with penalties will leave the rolls before
the review takes place, and that 10% of the cases will comply after the
review, thereby removing the penalty and increasing their 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