LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 28, 2001 TO: Honorable Elliott Naishtat, Chair, House Committee on Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: HB1213 by Maxey (Relating to creation and implementation by the Health and Human Services Commission of family-based alternatives to the institutionalization of children.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1213, Committee Report 1st House, Substituted: negative impact * * of $(3,324,213) 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 $(1,166,732) * * 2003 (2,157,481) * * 2004 (2,537,822) * * 2005 (2,017,403) * * 2006 (1,467,727) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(1,166,732) 2.0 * * 2003 (2,157,481) 2.0 * * 2004 (2,537,822) 2.0 * * 2005 (2,017,403) 2.0 * * 2006 (1,467,727) 2.0 * *************************************************************************** Fiscal Analysis The bill would require the Health and Human Services Commission (HHSC) to develop and implement a system of family-based alternatives for children in institutions. The HHSC would be required to ensure appropriate waivers be made available for each child in an institution and such waivers allow for services through family-based alternatives. The HHSC would also be responsible for providing an annual report to the Legislature not later than January 1, 2003, which would include information on the status of the system and the children in the system. Methodology It is assumed implementation of the system would be February 2002. Services required for implementation would be contracted out, overseen by the HHSC. The HHSC assumed a sufficient number of wavier slots (estimated to be 409) would be made available for the children and are not included in the numbers above. It is assumed that funds would be authorized at agencies operating the waiver programs to allow for placement of children in family-based alternatives. The HHSC estimates an additional two FTEs would be needed to oversee the operations of the system, provide technical assistance, provide training, and complete the necessary reporting. The HHSC states estimates are for the six geographic regions of the state with the highest concentration of children in institutions. The HHSC also states estimates included are solely administrative and do not include programmatic costs related to waiver slots; fiscal implications for full implementation would be significant and would require new funding. Other health and human service agencies would also be impacted; estimates for those costs are not included. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 529 Health and Human Services Commission LBB Staff: JK, HD