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 ************************************************************************** * 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. * ************************************************************************** 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) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *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 * *************************************************************************** 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