LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 24, 2001
TO: Honorable James E. "Pete" Laney, Speaker of the House,
House of Representatives
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1005 by Naishtat (Relating to the creation of a state
program of temporary assistance and related support
services for needy persons.), As Passed 2nd House
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1005, As Passed 2nd House: negative impact of $(1,650,000) *
* 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 $(1,650,000) *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(1,650,000) *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
*****************************************************
Fiscal Analysis
The bill would amend Section 1, Subtitle C, Title 2, Human Resources Code
by adding Chapter 34 to create a new temporary assistance program paid
for by state funds for all eligible two-parent households in the state,
and all eligible persons residing in minimum service counties as defined
by the Texas Workforce Commission (TWC). State funds would be used to
provide cash assistance and related support services to qualifying
cases. Provisions of the bill direct the Health and Human Services
Commission (HHSC), TWC, and the Department of Human Services (DHS) to
form an interagency work group to develop rules for this program. In
addition, the provisions require that the rules must be designed to
result in a State program that is substantively identical to the
financial assistance program authorized by Human Resources Code, Chapter
31, Financial Assistance and Service Programs. The bill also provides
that recipients under this State-funded program would be eligible for
Medicaid in the same manner as recipients of federally funded Temporary
Assistance for Needy Families (TANF) benefits. If enacted, the bill
would take effect September 1, 2001.
Methodology
The bill would change the method of finance for funding cash assistance
and related support services to two-parent families and persons residing
in minimum service counties from a combination of federal TANF funds and
State Maintenance of Effort (MOE) to State MOE funding only. It is
assumed that related support services refers to payment for one-time
expenses, transportation allowances or any other service with direct
monetary value. Services available through TWC and local workforce
development boards, such as case management, job development, job
placement, subsidized employment, treatment, education or training
programs would be funded with federal TANF funds.
Pursuant to provisions of the bill it is assumed that rules would be
designed to result in a State program that is substantively identical to
the financial assistance program authorized by Human Resources Code,
Chapter 31, Financial Assistance and Service Programs. It is assumed
that only limited services would be available to persons residing in
minimum service counties, as available under the current program. DHS
has assumed a technology cost of $1,650,000 for implementation of the
provisions of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 529 Health and Human Services Commission, 320
Texas Workforce Commission, 324 Texas Department of
Human Services
LBB Staff: JK, HD, ML, KE