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