LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 27, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1187 by Olivo (Relating to the Parents as Scholars
pilot program for certain persons eligible to receive
financial assistance.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1187, As Introduced: negative impact of $(3,326,879) 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 $(2,416,800) *
* 2003 (910,079) *
* 2004 (959,717) *
* 2005 (700,961) *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund Federal Funds - Federal *
* 0001 0555 *
* 2002 $(2,416,800) $568,800 *
* 2003 (910,079) 910,079 *
* 2004 (959,717) 903,467 *
* 2005 (700,961) 682,211 *
* 2006 0 56,592 *
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Given the limited availability of TANF federal funds, for the purposes of
this fiscal note, General Revenue is assumed to be the Method of
Financing. Should additional TANF federal funds become available
$1,279,200 in General Revenue costs assumed above in FY 2002 could be
financed with TANF federal funds.
Fiscal Analysis
The bill would amend Section 31.045 of the Human Resources Code, and
require the Department of Human Services (DHS) to establish a Parents as
Scholars pilot program. The program would provide a package of benefits
designed to assist Temporary Assistance for Needy Families (TANF)
eligible families to work towards a post-secondary degree in lieu of
receiving regular TANF cash benefits. The new program would be available
as an alternative to regular TANF benefits for qualifying families.
Benefits under the new program that would be provided include tuition and
fees, textbooks and other educational supplies as well as other costs
associated with enrollment in an institution of higher education. The
bill specifies that participants are eligible for Medicaid and other
support services specified for TANF recipients. The bill also requires
that participants not be on the program for more than four years and must
demonstrate satisfactory educational progress.
Provisions of the bill provide for benefits to be funded, subject to
available funds, from state funds specifically appropriated for
implementation of the bill or from other state funds otherwise made
available to the department. If enacted, the bill would take effect
September 1, 2001, and expire September 1, 2005.
Methodology
DHS assumed the Parents as Scholars (PAS) pilot program would have 500
adults and their children enrolled per month through August 2003. DHS
also assumed that after August 2003, 90 percent would remain each
semester, but no new recipients would be added.
The department's estimate assumes intake would begin in September 2001,
but the first grant would be for the Spring semester beginning January
2002. It is also assumed that 75 percent of the participants would get a
2-year associates degree, and 25 percent a 4-year degree. DHS estimated
that savings would accrue in later years because most people graduating
from the program would not be expected to need TANF.
The DHS estimate included $1,848,000 in automation costs at start-up for
the PAS Pilot to track funds and participants to comply with Federal
reporting and evaluation requirements and a $75,000 cost for the PAS
Pilot evaluation, which is due in January 2005.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 512 Texas State Board of Podiatric Medical
Examiners, 781 Texas Higher Education Coordinating
Board, 304 Comptroller of Public Accounts, 324
Texas Department of Human Services
LBB Staff: JK, HD, ML, KC