LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 5, 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.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* HB1921, As Introduced: Scenario 1 a negative impact of *
* $(4,456,181), and Scenario 2 a 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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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 $(1,105,583) $(488,742) $(459,491) $(1,434,262) *
* 2003 (1,278,935) (594,667) (528,763) (1,690,773) *
* 2004 (1,470,439) (771,408) (608,310) (2,075,626) *
* 2005 (1,566,192) (970,464) (681,027) (2,484,475) *
* 2006 (1,724,331) (1,132,256) (751,314) (2,833,611) *
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Scenario 1, above, assumes that adoption assistance payments will
continue to parents of children age 18-20 who have a mental or physical
disability that warrants continuation of adoption assistance under
federal law and that Medicaid coverage would be provided for 90% of these
children after the month of their 19th birthday. It also assumes that
adoption assistance payments will continue to parents of other children
age 18 who do not have a high school diploma or equivalency certificate
and attend school regularly and that these payments will be financed by
100% General Revenue Funds.
Scenario 2, below, only includes adoption assistance payments to parents
of children age 18-20 who have a mental or physical disability that
warrants continuation of adoption assistance under federal law and
Medicaid coverage for 90% of these children after the month of their
19th birthday.
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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 that
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 that these costs can be absorbed
within existing resources.
Fiscal Analysis
The bill would require PRS to continue providing adoption assistance
payments to the parents of children age 18-20 who have a mental or
physical disability that warrants continuation of adoption assistance
under federal law.
It would also require PRS to continue providing adoption assistance
payments to the parents of children age 18 who do not have a mental or
physical disability that warrants continuation of adoption assistance
under federal law, do not have a high school diploma or equivalency
certificate, and attend school regularly.
The bill states that if the Legislature does not appropriate sufficient
money to provide adoption assistance payments to the parents of all the
children described above, PRS shall only provide adoption assistance
payments to the parents of children age 18-20 who have a mental or
physical disability that warrants continuation of adoption assistance
under federal law.
The change in law would apply to all adoption assistance agreements
entered into by the department. The effective date is September 1,
2001.
Methodology
Both scenarios share 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
not eligible for federal financial participation is 25% of the total
adoption assistance caseload. The method-of-finance for these payments
is 100% General Revenue Funds.
(3) 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.
(4) The number of children age 18-20 with a mental or physical disability
that warrants continuation of adoption assistance under federal law is
22% of the federal caseload (# 3 above).
(5) The number of children age 18 without a mental or physical disability
that warrants continuation of adoption assistance under federal law is
100% of the state-paid caseload (#2 above) and 78% of the federal
caseload (#3 above). Of this number, 20% will not continue their
schooling after the month of their 18th birthday, 20% will remain in
school for 3 months, 20% for 6 months, 20% for 9 months and 20% for 12
months.
(6) The average monthly cost per adoption assistance payment is $472.96
for 2002 and $472.88 for 2003 through 2006.
(7) 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 under federal law would be covered by the state
Medicaid program.
(8) The average monthly cost of Medicaid coverage is $153.77 for 2002,
$168.89 for 2003, $185.08 for 2004, $203.00 for 2005, and $222.80 for
2006.
(9) The Federal Medical Assistance Percentage (FMAP) is 60.20% for 2002,
60.08% for 2003, and 60.07% for 2004 through 2006. These matching rates
apply to federal adoption assistance payments as well as state Medicaid
program coverage.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 530 Department of Protective and Regulatory
Services, 501 Texas Department of Health
LBB Staff: JK, HD, NM