LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 21, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB42 by Zaffirini (Relating to identifying and
addressing the needs of certain recipients of financial
assistance and dependent children of recipients of
financial assistance.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB42, As Introduced: negative impact of $(11,368,946) 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 $(5,849,491) *
* 2003 (5,519,455) *
* 2004 (5,431,319) *
* 2005 (5,268,963) *
* 2006 (5,226,391) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Number of State *
* from GR MOE for from Federal from GR Match Employees from *
* Temporary Funds - Federal for Medicaid FY 2001 *
* Assistance for 0555 0758 *
* Needy Families *
* 0759 *
* 2002 $(5,865,373) $147,178 $15,882 44.0 *
* 2003 (5,543,652) 228,195 24,197 65.0 *
* 2004 (5,455,522) 235,190 24,203 66.0 *
* 2005 (5,292,057) 227,585 23,094 62.0 *
* 2006 (5,248,678) 225,503 22,287 61.0 *
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Given the limited availability of Temporary Assistance for Needy Families
(TANF) federal funds, for the purpose of this fiscal note General
Revenue is assumed as the method of financing. Should additional TANF
federal funds become available, $5,865,373 in FY 2002 and $5,543,652 in
FY 2003 of General Revenue costs assumed above could be financed with
TANF federal funds.
Technology Impact
A case management automation application would need to be developed at
the Department of Human Services (DHS), with an estimated cost of 8,000
hours of programming at $880,000 and an additional $90,000 for hardware
and software.
Fiscal Analysis
Section 1 of the bill amends Chapter 31 of the Human Resources Code by
adding Section 31.00331 requiring DHS to conduct a case review upon
application of a penalty to a TANF recipient for noncompliance with
THSteps, school attendance, and parenting skills (effective September 1,
2001). Section 4 amends Chapter 31 by adding Sections 31.001 and 31.0111
requiring DHS to develop and implement a personal needs assessment to
identify barriers to achieving self-sufficiency and make appropriate
referrals, and to develop and implement a needs assessment for TANF
children and make appropriate referrals (effective January 1, 2002).
Section 5 of the bill amends Chapter 31 by adding Section 31.0128
requiring DHS and the Texas Workforce Commission (TWC) to develop a
Memorandum of Understanding to establish a coordinated case management
plan for individuals with significant barriers.
Section 6 amends Chapter 31 by adding Section 31.046 requiring DHS to
implement a performance-based bonus program to reward local offices that
design and implement effective case management tools for identifying and
addressing the needs of hardest-to-serve TANF recipients (effective
September 1, 2001). Section 7 amends Chapter 302 of the Labor Code by
adding Section 302.044 requiring TWC to implement a performance-based
bonus program to reward career development centers that design and
implement effective case management tools for addressing the needs of
TANF recipients (effective September 1, 2001).
Methodology
DHS determined the number of new penalties in FY 2000 for noncompliance
with THSteps, school attendance, and parenting skills. The TANF growth
rate was applied, and it was assumed that 15% of cases with penalties
will leave the rolls prior to review. It was also assumed that each case
review would take ten minutes, and that 10% of clients would comply
after the review and referral, thus increasing the grant amount. It was
assumed that 50% of cases with a complete review require a personal needs
assessment, the assessment takes 30 minutes, and 5% of cases assessed
and referred become employed on average three months earlier than if the
assessment and referral had not been conducted. On the needs assessment
for children, it was assumed that 25% of cases with an eligibility
determination will require a needs assessment, and that it would take 15
minutes to conduct the assessment and make referrals.
For the performance-based bonus program to reward local offices that
design and implement effective case management tools, DHS assumed all
rewards would be non-financial. TWC assumed bonuses would be financial
and all 28 local workforce development boards (LWDBs) would be eligible,
at least one center in each LWDB area would receive a bonus, nine large
areas would be eligible for a bonus of $150,000, and 19 smaller areas
would be eligible for a bonus of $75,000. TWC also assumed one staff
person would be required to conduct evaluations, including on-site
reviews.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 529 Health and Human Services Commission, 324
Texas Department of Human Services
LBB Staff: JK, HD, KE