LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 21, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB49 by Zaffirini (Relating to applying penalties to
recipients of financial and nutritional assistance for
certain drug- and alcohol-related convictions.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB49, As Introduced: negative impact of $(172,095) 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 $(172,095) *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
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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 - Federal Funds - *
* 0001 Federal Federal *
* 0555 0555 *
* 2002 $(172,095) $(135,905) $44,243 *
* 2003 0 0 106,929 *
* 2004 0 0 108,133 *
* 2005 0 0 101,966 *
* 2006 0 0 98,906 *
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Given the limited availability of TANF federal funds, for the purposes of
this fiscal note, General Revenue is assumed as a portion of the costs
in FY 2002. Should additional TANF federal funds be available, $36,190
in General Revenue costs assumed above in FY 2002 could be financed with
TANF federal funds.
Fiscal Analysis
The bill would require the Department of Human Services (DHS) to reduce
the amount of financial assistance provided to a person by $25 per month
for six months for a drug or alcohol-related misdemeanor conviction for
Temporary Assistance for Needy Families (TANF) recipients. The bill
allows TANF and Food Stamp (FS) clients with non-trafficking drug
felonies to receive assistance if a client has completed any sentencing,
are in compliance with parole/probation, and are participating in or
have completed a substance abuse treatment program. The bill would only
apply to offenses committed on or after April 1, 2002.
Methodology
DHS assumed the same proportion of children 14 and older would have a
drug or alcohol penalty as the proportion of adults with this type of
penalty. DHS estimates assume a $25 reduction in financial assistance for
each of these children. The department estimated a TANF savings because
of the reduction of financial assistance for drug or alcohol-related
penalties to children and disqualification of some adults for the same
offenses.
DHS indicated that 1,310 cases had someone with a drug disqualification.
The department estimated that 20 percent of the FS clients would have a
possession / use conviction rather than a trafficking conviction, and
would be in compliance with the requirements regarding parole,
probation, and participation in a treatment program. The DHS estimate
stated the FS allotment would increase by about $100 per person per
month for those complying. DHS could not estimate the number of people
refused FS who are not currently associated with an active case who
would be approved under provisions of the bill. Food Stamp assistance
accruing to clients not included above is $297,008 in FY 2002 and
$711,183 thereafter. DHS assumed $308,000 in costs for automation the
first year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 324 Texas Department of Human Services
LBB Staff: JK, HD, KF, ML