LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 17, 2001 TO: Honorable Elliott Naishtat, Chair, House Committee on Human Services 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.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1005, Committee Report 1st House, Substituted: 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 * ***************************************************** Given the limited availability of 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, $1,650,000 in General Revenue costs assumed above could be financed with TANF federal funds. 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