LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 7, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB184 by Zaffirini (Relating to services and programs
provided under and eligibility for temporary assistance
for needy families and for food stamps.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB184, As Introduced: negative impact of $(16,761,553) 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 $(5,345,401) *
* 2003 (11,416,152) *
* 2004 (13,229,416) *
* 2005 (13,898,964) *
* 2006 (14,272,360) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from General from General from GR Match from GR Match *
* Revenue Fund Revenue Fund for Medicaid for Medicaid *
* 0001 0001 0758 0758 *
* 2002 $974,971 $(1,272,226) $607,250 $(2,639,080) *
* 2003 947,203 (2,046,426) 589,956 (4,806,073) *
* 2004 874,488 (2,079,576) 544,666 (5,375,061) *
* 2005 864,833 (2,073,516) 538,652 (5,549,418) *
* 2006 862,727 (2,078,861) 537,341 (5,610,999) *
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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, $3,437,644 in FY 2002 and $6,510,140 in
FY 2003 of General Revenue costs assumed above could be financed with
TANF federal funds. 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 $27.8 million in FY 2002, rising to $63.4 million in FY 2006. Food
Stamp benefits are 100% federally funded.
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*Fiscal Probable Probable Probable Probable Change in *
* Year Savings/ Savings/ Savings/ Savings/ Number of *
* (Cost) from (Cost) from (Cost) from (Cost) from State *
* GR MOE for GR MOE for Federal Federal Employees *
* Temporary Temporary Funds - Funds - from FY 2001 *
* Assistance Assistance Federal Federal *
* for Needy for Needy 0555 0555 *
* Families Families *
* 0759 0759 *
* 2002 $421,328 $1,582,221 24.0 *
* $(3,437,644) $(4,857,255) *
* 2003 409,328 (6,510,140) 1,537,158 (8,634,766) 94.0 *
* 2004 377,905 (7,571,838) 1,419,154 (9,511,031) 113.0 *
* 2005 373,733 (8,053,248) 1,403,485 (9,769,055) 116.0 *
* 2006 372,823 (8,355,391) 1,400,067 (9,865,279) 117.0 *
***********************************************************************
Technology Impact
An estimated 280 hours of programming to modify the Generic Worksheet and
Scheduler changes to accommodate telephone interviews at $110 per hour
totals $30,800.
Fiscal Analysis
Sections 1 and 2 of the bill modify the definition of financial
assistance to include "related services or programs" in addition to cash
assistance. Section 3 of the bill would change TANF eligibility criteria
regarding treatment of the value of vehicles to exclude the entire fair
market value of one vehicle and the fair market value of any other
vehicle up to $5000.
Under Section 4 of the bill this standard would also be used in the Food
Stamp program--a state option in new federal legislation (Public Law
106-387). Section 4 allows the department to conduct a recertification
interview for Food Stamp recipients 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. Such recipients
would be required to have at least one face-to-face interview per year.
All provisions would be effective September 1, 2001.
Methodology
Sections 1 and 2 would make persons receiving TANF services categorically
eligible for Food Stamps. It is assumed that 60% of applicants will be
denied for not showing up for interviews or not providing information,
and that half of those denied have a child. Section 3 expands
eligibility for TANF, which thereby extends Medicaid coverage. It is
assumed that 80% of 320 TANF applicants per month denied assistance due
to resources are attributable to the current vehicle limits. A 91%
retention rate for TANF cases is assumed, resulting in the following
additional TANF cases: 1,530 in FY 2002, 2,917 in FY 2003, 3,369 in FY
2004, 3,516 in FY 2005, and 3,564 in FY 2006. The average TANF grant per
case is estimated to be $155.33 per month, rising 3% per year to remain
at 17% of the federal poverty level.
For Medicaid purposes, children would have been eligible under non-TANF
categories, so the impact of the increase in the vehicle limit on the
Medicaid program is assumed to be one adult in each of the additional
TANF cases. Medicaid costs reflect insured services, cost-reimbursed
services, vendor drug and medical transportation. Federal Medicaid
reimbursements included above total $3.4 million in FY 2002, $6.3 million
in FY 2003, $7.2 million in FY 2004, $7.4 million in FY 2005 and $7.5
million in FY 2006.
Section 4 expands eligibility for Food Stamps. It is assumed that 80% of
2000 Food Stamp applicants per month denied benefits due to resources
are attributable to the current vehicle limits. A 91% retention rate for
Food Stamp cases is assumed. The average Food Stamp grant per case is
estimated at $206.05 per month, increasing 2% per year for cost of living
adjustments.
For telephone recertifications, it is assumed that approximately half of
Food Stamp cases meet the criteria, and that 7% of these would not be
impacted by the bill (because they 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 that about 20% do not complete the telephone
interview and have a face-to-face interview instead. Net savings of
about 11.5 minutes per case are estimated.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 320 Texas Workforce Commission, 324 Texas
Department of Human Services, 501 Texas Department
of Health
LBB Staff: JK, HD, KE