LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 19, 2001 TO: Honorable Elliott Naishtat, Chair, House Committee on Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: HB2251 by Naishtat (Relating to resource requirements under the temporary assistance for needy families program and the food stamp program.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2251, As Introduced: negative impact of $(11,670,039) 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 $(4,026,334) * * 2003 (7,643,705) * * 2004 (8,884,882) * * 2005 (9,390,718) * * 2006 (9,726,002) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Change in Number of * * Year Savings/(Cost) from Savings/(Cost) from State Employees from * * General Revenue Fund Federal Funds - FY 2001 * * 0001 Federal * * 0555 * * 2002 $(4,026,334) $(927,494) 47.0 * * 2003 (7,643,705) (1,626,937) 89.0 * * 2004 (8,884,882) (1,780,453) 103.0 * * 2005 (9,390,718) (1,797,726) 106.0 * * 2006 (9,726,002) (1,825,808) 108.0 * ************************************************************************** Given the limited availability of TANF federal funds, for the purposes of this fiscal note, General Revenue is assumed to be the method of financing. Should additional TANF federal funds become available, $3,098,840 in FY 2002 and $6,016,768 in FY 2003 in General Revenue costs assumed above could be financed with TANF federal funds. Fiscal Analysis The bill would amend Sections 31.032 (d) and (e), Human Resources Code, relating to the countable value of a vehicle. Provisions of the bill would exclude the entire fair market value of one vehicle and the fair market value of any other vehicle, up to $5,000 per vehicle. In addition, the bill adds Section 33.014 requiring the Department of Human Services (DHS) to apply the vehicle allowance standard used in the TANF program for the food stamp program, instead of the federal food stamp vehicle allowance standards. This provision is a state option in the new federal legislation, Public Law 106-387, Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act of 2001. Methodology The department indicated approximately 320 TANF applications per month are denied for resources. DHS assumed 80 percent of those were for vehicles and would be approved under the provisions of the bill. In addition, DHS assumed a 91 percent retention rate for TANF cases and the average TANF grant per case was estimated to be $155.33 per month and would rise approximately 3 percent per year to remain at 17 percent of the federal poverty level. DHS also estimated approximately 2,000 food stamp applications per month were denied for resources and assumed 80 percent of those were for vehicles and would be approved under the provisions of the bill. In addition, DHS assumed a 91 percent retention rate for Food Stamp cases. DHS estimated the average food stamp grant per case is $206.05 per month increasing 2 percent per year for cost of living adjustments to the food stamp benefits. DHS based the need for additional staff to handle the added cases on time studies. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 324 Texas Department of Human Services, 320 Texas Workforce Commission LBB Staff: JK, HD, ML