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