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: HB2395 by Chavez (Relating to the provision of financial assistance to certain legal immigrants.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2395, As Introduced: negative impact of $(1,458,201) 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 $(373,728) * * 2003 (1,084,473) * * 2004 (1,817,732) * * 2005 (2,543,638) * * 2006 (3,256,553) * **************************************************** 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 $(373,728) $(66,931) 1.0 * * 2003 (1,084,473) (136,709) 4.0 * * 2004 (1,817,732) (364,430) 8.0 * * 2005 (2,543,638) (516,269) 12.0 * * 2006 (3,256,553) (657,875) 15.5 * ************************************************************************** Given the limited availability of TANF federal funds, for the purposes of this fiscal note, General Revenue is assumed as the method of financing. Should additional TANF federal funds become available, $322,473 in FY 2002 and $921,883 in FY 2003 in General Revenue costs assumed above could be financed with TANF federal funds. Fiscal Analysis The bill would amend Subchapter A, Chapter 31, Human Resources Code by adding Section 31.0015 relating to eligibility of certain legal immigrants. The bill directs the Texas Department of Human Services (DHS) to determine eligibility for Temporary Assistance for Needy Families (TANF) financial assistance for federally defined qualified aliens who entered the United States on or after August 22, 1996, who meet all eligibility criteria except for citizenship (8 USC Section 1612, as amended), and have been a resident of the United States for a minimum of five years. Methodology The department determined the percentage of legal immigrants of the TANF caseload for January - December 1996 and the percentage of legal immigrants of the TANF caseload for February 2001. The percentages for the 1996 time period were compared to the lower February 2001 percentages of legal immigrants to determine the number of projected legal immigrants who would become eligible under the bill. The department determined the 5-year residency requirement of the bill would take effect in September 2001 for those who were denied benefits 5 years before in September 1996, the legal immigrants projected to become eligible under the 5-year residency requirement of the bill were equally distributed over FYs 2002-06. DHS assumed no delay between the time persons become legal immigrants and the time they become eligible for services under the bill, and assumes the legal immigrants projected to become eligible under the bill have the same demographic characteristics and financial situations as those legal immigrants receiving TANF financial assistance in February 2001. The department indicated there would be a reduction in the caseloads for the Undocumented and Ineligible Immigrant Medicaid program, since some of the clients in the program would transfer into TANF. DHS stated no estimate of the anticipated transfer of the legal immigrants and its fiscal impact could be included in the analyses because the data are not available. DHS also stated because of the increase in the TANF caseload, additional DHS staff would be needed. TANF eligibility is assumed to confer eligibility for medical assistance (Medicaid). The numbers in the table above include amounts for medical assistance payments for 415 clients in FY 2002, 1,182 in FY 2003, 1,949 in FY 2004, 2,715 in FY 2005 and 3,482 in FY 2006. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 320 Texas Workforce Commission, 324 Texas Department of Human Services LBB Staff: JK, HD, ML