LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 2, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB713 by Wilson (Relating to the establishment of
residential living facilities for certain youth.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB713, As Introduced: negative impact of $(2,408,315) 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 $(1,106,864) *
* 2003 (1,301,451) *
* 2004 (841,952) *
* 2005 (687,432) *
* 2006 (689,013) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Revenue *
* from General from GR Match from Federal Gain/(Loss) *
* Revenue Fund for Medicaid Funds - Federal from General *
* 0001 0758 0555 Revenue Fund *
* 0001 *
* 2002 $(1,147,432) $(19,823) $(29,983) $60,391 *
* 2003 (1,346,700) (25,630) (38,573) 70,879 *
* 2004 (869,578) (18,141) (27,290) 45,767 *
* 2005 (708,510) (16,212) (24,388) 37,290 *
* 2006 (708,510) (17,793) (26,767) 37,290 *
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Fiscal Analysis
The bill would require the Department of Protective and Regulatory
Services (PRS) to establish or provide for the establishment of
residential living facilities for children who are abused, neglected or
separated from their parents due to parental incarceration and eligible
for placement in a foster home. The bill would authorize PRS to
contract with another state agency or political subdivision of the state
to establish or provide for the establishment of the facilities and
authorize PRS to charge a fee for residential living services based on
ability to pay. The bill would require PRS to prescribe standards of
operation and performance for residential living facilities and to
inspect each facility at least annually. The bill would take effect
September 1, 2001.
Methodology
The cost estimate is based on the following assumptions:
(1) The number of children entering residential living facilities
established under the bill would be 100 for 2002 and 50 for each
subsequent year. The children would enter the residential living
facilities in equal monthly increments throughout the year; for example,
eight children would enter in September 2002, eight in October 2002, etc.
The average length-of-stay would be 24 months.
(2) The average daily cost per child would be $62.15 which is the current
daily rate for Level of Care III foster care settings. The cost would
be offset by Supplemental Security Income payments received by or on
behalf of 5% of the children that would be applied toward the cost of
residential care based on a sliding fee scale. The method-of-finance
would be 100% General Revenue funds.
(3) Fifty percent of the children entering the residential living
facilities would already have coverage from the state Medicaid program or
the state Children's Health Insurance Program (CHIP) due to SSI
eligibility or other circumstances. The average monthly cost of Medicaid
coverage for the remaining children would be $153.77 for FY 2002,
$168.89 for FY 2003, $185.08 for FY 2004, $203.00 for FY 2005 and $222.80
for FY 2006.
(4) The Federal Medical Assistance Percentage (FMAP) would be 60.20% for
FY 2002, 60.08% for FY 2003, and 60.07% for FYs 2004 through 2006. These
matching rates would apply to state Medicaid program coverage.
(5) The additional cost of setting standards for and conducting annual
inspections of residential living facilities would be absorbed by the
agency.
Local Government Impact
To the extent a local unit of government operates a residential living
facility, there could be a revenue gain because of state funds received
for residential care. The exact revenue increase is unknown because of
PRS's discretion in how the program is structured. The revenue gain
would be offset by the increased expenditures to operate the new
program.
Source Agencies: 530 Department of Protective and Regulatory
Services, 304 Comptroller of Public Accounts
LBB Staff: JK, HD, KF, NM, DB