LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 6, 2001
TO: Honorable Toby Goodman, Chair, House Committee on
Juvenile Justice & Family Issues
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB714 by Wilson (Relating to foster care for a child who
resides with a relative.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB714, As Introduced: negative impact of $(81,687,438) 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 $(46,853,928) *
* 2003 (34,833,510) *
* 2004 (29,682,672) *
* 2005 (30,492,091) *
* 2006 (31,325,792) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Number of State *
* from General from GR Match from Federal Employees from *
* Revenue Fund for Medicaid Funds - Federal FY 2001 *
* 0001 0758 0555 *
* 2002 $(46,320,764) $(533,164) $(1,162,712) 68.0 *
* 2003 (34,126,063) (707,447) (1,535,786) 93.0 *
* 2004 (28,975,225) (707,447) (1,535,786) 93.0 *
* 2005 (29,784,644) (707,447) (1,535,786) 93.0 *
* 2006 (30,618,345) (707,447) (1,535,786) 93.0 *
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Fiscal Analysis
The bill would require the Department of Protective and Regulatory
Services (PRS) to do the following: (1) make a reasonable effort to
place a child in foster care with a relative, (2) develop an accelerated
and less stringent foster home certification process for relatives and
(3) provide immediate foster care payments for relatives. It would also
permit PRS to waive foster home certification requirements when a child
is placed with a relative. It is anticipated that the bill would
increase the number of foster care payments for children living with
relatives and increase workload requirements for the department.
Methodology
Federal regulations require Texas to establish and maintain standards for
foster family homes in accord with recommended standards from national
organizations concerned with standards for foster homes. They also
require that all homes licensed or approved to provide foster care
services meet the same set of state standards. It is assumed that foster
care payments for children living with relatives who are subjected to a
less stringent certification process, or waived from certification
requirements, will be financed with 100% General Revenue Funds to avoid
losing federal funds for the Title IVE foster care and adoption
assistance program.
It is assumed that PRS will begin providing foster care payments for
2,613 children already placed with relatives at the start of fiscal year
2002 and that these children will leave the foster care system in equal
increments over 24 months. It is also assumed that PRS will begin
providing foster care payments for the following average monthly numbers
of children entering the system to live with relatives who are subjected
to a less stringent certification process or waived from certification
requirements: 3,330 for 2002, 3,124 for 2003, 3,218 for 2004, 3,314 for
2005 and 3,414 for 2006. These children will remain in the system for an
average of 12 months. Eighty percent of the children will be placed at
Level of Care 1 with a daily payment rate of $16.96, fifteen percent will
be placed at Level of Care 2 with a daily payment rate of $36.33, and
five percent will be placed at Level of Care 3 with a daily payment rate
of $62.15.
According to the department, there will be additional costs for case
management services and foster home training, verification and
monitoring services. Ninety-three FTEs will be needed to handle the
additional workload including 69 caseworkers, 10 supervisors, 12
clerical workers and 2 attorneys. FTEs are phased-in during fiscal year
2002. Approximately 40% of the staffing costs could be financed with
TANF (Temporary Assistance for Needy Families) Federal Funds in lieu of
General Revenue Funds.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 530 Department of Protective and Regulatory Services
LBB Staff: JK, SD, NM