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 ************************************************************************** * 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. * ************************************************************************** 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) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *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) * *************************************************************************** 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