LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 25, 2001
TO: Honorable James E. "Pete" Laney, Speaker of the House,
House of Representatives
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1921 by Maxey (Relating to the continuation of
adoption assistance after the 18th birthday of certain
children.), As Passed 2nd House
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1921, As Passed 2nd House: negative impact of $(2,132,406) *
* 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 $(987,688) *
* 2003 (1,144,718) *
* 2004 (1,342,404) *
* 2005 (1,534,214) *
* 2006 (1,710,636) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from General from GR Match from GR Match from Federal *
* Revenue Fund for Medicaid for Title IV-E Funds - Federal *
* 0001 0758 Foster 0555 *
* Care/Adoption *
* Payments *
* 8008 *
* 2002 $(384,833) $(143,364) $(459,491) $(911,857) *
* 2003 (441,519) (174,436) (528,763) (1,058,321) *
* 2004 (507,814) (226,280) (608,310) (1,255,543) *
* 2005 (568,518) (284,669) (681,027) (1,452,777) *
* 2006 (627,193) (332,129) (751,314) (1,629,912) *
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Technology Impact
The Department of Protective and Regulatory Services (PRS) estimates it
would cost $25,000 to modify the Child and Adult Protective System so
caseworkers can authorize adoption assistance payments beyond age 17.
The agency states these costs can be absorbed within existing resources.
Fiscal Analysis
The bill would require PRS to offer adoption assistance for children age
18-20 who receive financial assistance from their parents, have applied
for federal Supplemental Security Income (SSI), and have a mental or
physical disability that warrants continuation of an existing adoption
assistance agreement. The bill would also require PRS to offer adoption
assistance for children age 18 under certain circumstances. The bill
would extend eligibility for adoption assistance to all children
described above including those who are not eligible for Title IV-E
federal adoption assistance payments.
Methodology
PRS provided data on the monthly number of children turning 18 from
September 1998 through August 2006. It is assumed that the agency would
provide adoption assistance for all children age 18-20 who receive
financial assistance from their parents, have applied for SSI, and have a
mental or physical disability that warrants continuation of adoption
assistance. Approximately 75% of these children would be eligible for
Title IV-E federal adoption assistance. The remaining children would be
eligible for state-paid adoption assistance. The average monthly cost
per adoption assistance payment would be $472.96 for FY 2002 and $472.88
for each subsequent year.
Current law covers eligible children through the month of their 19th
birthday under the state Medicaid program or the state Children's Health
Insurance Program (CHIP). It is assumed that Medicaid coverage would
continue for 90% of all children receiving adoption assistance through
the month of their 21st birthday. The average monthly cost for this
coverage would be $153.77 for FY 2002, $168.89 for FY 2003, $185.08 for
FY 2004, $203.00 for FY 2005, and $222.80 for FY 2006.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TB, NM