LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 29, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
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.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1921, Committee Report 1st House, Substituted: negative impact *
* of $(2,071,663) 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(948,233) *
* 2003 (1,123,430) *
* 2004 (1,379,718) *
* 2005 (1,651,491) *
* 2006 (1,883,570) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable *
* Year Savings/(Cost) from Savings/(Cost) from Savings/(Cost) from *
* GR Match for GR Match for Title Federal Funds - *
* Medicaid IV-E Foster Federal *
* 0758 Care/Adoption 0555 *
* Payments *
* 8008 *
* 2002 $(488,742) $(459,491) $(1,434,262) *
* 2003 (594,667) (528,763) (1,690,773) *
* 2004 (771,408) (608,310) (2,075,626) *
* 2005 (970,464) (681,027) (2,484,475) *
* 2006 (1,132,256) (751,314) (2,833,611) *
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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
(CAPS) so that 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 payments to the
parents of children age 18-20 who: (1) have a mental or physical
disability that warrants continuation of adoption assistance, (2)
receive their financial support from their parents, (3) have applied for
federal supplemental security income (SSI) benefits, and (4) are
eligible to participate in the federal Title IV-E adoption assistance
program. It would also require PRS to inform parents about the SSI
application requirement, to assist in preparing the SSI application and
to provide ongoing consultation and guidance during the SSI eligibility
determination process.
Methodology
The cost estimate is based on the following assumptions:
(1) The monthly number of children turning 18 from September 1998 to
August 2006 was provided by PRS.
(2) The number of parents receiving adoption assistance payments that are
eligible for federal financial participation is 75% of the total
adoption assistance caseload. The method-of-finance for these payments
is approximately 40% General Revenue Funds and 60% Federal Funds.
(3) The number of children age 18-20 with a mental or physical disability
that warrants continuation of adoption assistance is 22% of the federal
caseload (#2 above).
(4) The average monthly cost per adoption assistance payment is $472.96
for FY 2002, and $472.88 for FYs 2003 through 2006.
(5) 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). Ninety percent (90%) of children age 19-20 who
have a mental or physical disability that warrants continuation of
adoption assistance would be covered by the Medicaid program.
(6) The average monthly cost of Medicaid coverage is $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.
(7) The Federal Medical Assistance Percentage (FMAP) is 60.20% for FY
2002, 60.08% for FY 2003, and 60.07% for FYs 2004 through 2006. These
matching rates apply to federal adoption assistance payments as well as
state Medicaid program coverage.
(8) The additional cost of informing parents about the SSI application
requirement, assisting in preparation of the SSI application and
providing ongoing consultation and guidance during the SSI eligibility
determination process will be absorbed by the agency.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 530 Department of Protective and Regulatory
Services, 330 Texas Rehabilitation Commission
LBB Staff: JK, HD, NM