LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 9, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB184 by Zaffirini (Relating to eligibility requirements
for certain persons under the food stamp program.), As
Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB184, As Engrossed: positive impact of $1,343,766 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 $1,088,970 *
* 2003 254,796 *
* 2004 (17,842) *
* 2005 (48,789) *
* 2006 (66,631) *
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All Funds, Five-Year Impact:
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*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 $1,088,970 $1,088,970 (68.0) *
* 2003 254,796 254,796 (16.0) *
* 2004 (17,842) (17,842) 1.0 *
* 2005 (48,789) (48,789) 3.0 *
* 2006 (66,631) (66,631) 4.0 *
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Although funds to administer the Food Stamp program are appropriated in
the state budget, Food Stamp benefits to clients are not. However, the
estimated value of Food Stamp benefits would increase by $18.9 million
in FY 2002, rising to $45.1 million by FY 2006. Food Stamp benefits are
100% federally funded.
Fiscal Analysis
The bill would amend Chapter 33 of the Human Resources Code by adding
Section 33.015. Section 1 of the bill allows the Department of Human
Services to conduct interviews for initial establishment and
recertification of eligibility for Food Stamps by telephone, provided
the recipient and all household members are elderly or disabled and have
no earned income, or the recipient is subject to hardship that includes
a work or training schedule preventing personal appearance,
transportation difficulties, residence in a rural area, prolonged,
severe weather, illness, or a need to care for other household members.
The department may require a personal appearance if necessary to protect
the integrity of the Food Stamp program or prevent an adverse
determination. Section 2 requires the department to adopt rules to
exercise the federal option (7 CFR Part 273.2(j)) under which households
that are eligible for non-cash or in-kind benefits under TANF are
considered categorically eligible for Food Stamps. The bill provisions
are effective September 1, 2001.
Methodology
Data from November 2000 was used to determine the percent of the Food
Stamp caseload meeting the criteria for telephone interviews. It is
assumed approximately half of Food Stamp cases meet the criteria, and
that 7% of these would have a 12-month certification period, 38% would
have one telephone interview a year (because they have a 6-month review
schedule), and about 55% would have three telephone interviews a year
(because they average a 3-month review schedule). It is assumed about
20% do not complete the telephone interview and have a face-to-face
interview instead. Net savings of about 11.5 minutes per interview are
assumed. It is also assumed that those clients with Medicaid continue to
participate in face-to-face interviews. There would be 68 fewer staff in
FY 2002, 16 fewer staff in FY 2003, with a few additional staff in the
later years.
Under Section 2 of the bill, it is assumed 60% of Food Stamp applicants
will be denied for not completing the application process, half of those
denied have a child, and 30% of applicants with a child have only one
child. It is further assumed that 30% of applicants come in more than
once a year, reducing the estimated number of approved applications by
30%.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 324 Texas Department of Human Services
LBB Staff: JK, HD, KE