LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 25, 2001 TO: Honorable Bill Ratliff, Lieutenant Governor, Senate 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 Passed 2nd House ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB184, As Passed 2nd House: 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. * ************************************************************************** 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) * **************************************************** 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 $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 * ************************************************************************** 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