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: HB2280 by Naishtat (Relating to the establishment of a
pilot program to identify, assess, and address the
personal needs of certain recipients of financial
assistance.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2280, As Introduced: negative impact of $(4,067,329) 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:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(1,767,001) *
* 2003 (2,300,328) *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable *
* Year Savings/(Cost) from Savings/(Cost) from Savings/(Cost) from *
* General Revenue Fund Federal Funds - GR Match for *
* 0001 Federal Medicaid *
* 0555 0758 *
* 2002 $(1,703,731) $(164,853) $(63,270) *
* 2003 (2,272,246) (72,144) (28,082) *
* 2004 0 0 0 *
* 2005 0 0 0 *
* 2006 0 0 0 *
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Given the limited amount of Temporary Assistance for Needy Families
(TANF) federal funds, for the purposes of this fiscal note, General
Revenue is assumed as the method of financing. Should additional TANF
federal funding become available, $1,602,148 in FY 2002 and $2,228,184 in
FY 2003 of General Revenue costs assumed above could be financed with
TANF federal funds.
Technology Impact
The Department of Human Services (DHS) estimates a cost of $249,000 in
the 2002-03 biennium for developing a data collection, tracking, and
case management system.
Fiscal Analysis
The bill would amend Chapter 31 of the Human Resources Code to require
the Department of Human Services (DHS) and the Texas Workforce Commission
(TWC) to develop a coordinated case management pilot program, including
a personal needs assessment, intensive case management support, and
monitoring services, for Temporary Assistance for Needy Families (TANF)
recipients who have high levels of barriers to employment.
The bill would take effect on September 1, 2001, and expire on September
1, 2003.
Methodology
The fiscal impact of the bill is estimated to be $4.3 million of General
Revenue and Federal Funds for the 2002-03 biennium.
DHS based the estimate on its experience with the Employment, Retention,
and Advancement (ERA) pilot project implemented during the 2000-01
biennium. The agency estimates that there could be up to five sites
around the state to serve the TANF recipients with barriers assigned to
the case management pilot project. The agency estimates it would need an
additional 2.5 FTEs for managing the program, managing the contracts,
providing supervision, and providing program management, including
operating costs for these employees. The agency would contract out the
case management services.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 529 Health and Human Services Commission, 320
Texas Workforce Commission, 324 Texas Department of
Human Services
LBB Staff: JK, HD, RT, HL