LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 14, 2001
TO: Honorable Bill Ratliff, Lieutenant Governor, Senate
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB368 by Zaffirini (Relating to permanency planning
procedures for children in state institutions.), As
Passed 2nd House
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB368, As Passed 2nd House: negative impact of $(3,447,643) *
* 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 $(1,221,885) *
* 2003 (2,225,758) *
* 2004 (2,606,099) *
* 2005 (2,085,680) *
* 2006 (1,536,004) *
****************************************************
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 General from GR Match from Federal Employees from *
* Revenue Fund for Medicaid Funds - Federal FY 2001 *
* 0001 0758 0555 *
* 2002 $(1,202,784) $(19,101) $(77,468) 5.0 *
* 2003 (2,200,289) (25,469) (92,198) 5.0 *
* 2004 (2,580,630) (25,469) (92,198) 5.0 *
* 2005 (2,060,211) (25,469) (92,198) 5.0 *
* 2006 (1,510,535) (25,469) (92,198) 5.0 *
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Fiscal Analysis
The bill would amend Chapter 531, Government Code, concerned with
permanency planning, by defining a "child" to be a person with a
developmental disability who is younger than 22 years of age. This bill
would require uniform procedures for permanency planning and provide for
a delegation of duties with regards to permanency planning by the
Department of Human Services (DHS), the Department of Mental Health and
Mental Retardation (MHMR), and the Department of Protective and
Regulatory Services (PRS) to the local mental retardation authority
(LMRA) or a private entity. The bill would require the Health and Human
Services Commission (HHSC) to submit a semiannual report to the Governor
and appropriate Legislative committees of each house.
In addition, the bill would require the HHSC to develop and implement a
system of family-based alternatives for children in institutions. The
HHSC would be required to ensure appropriate waivers be made available
for each child in an institution and such waivers allow for services
through family-based alternatives. The HHSC would also be responsible
for providing an annual report to the Legislature not later than January
1, 2003, which would include information on the status of the system and
the children in the system.
The act would take effect September 1, 2001.
Methodology
The fiscal impact of the bill would encompass the costs of staff support
to ensure that uniform standards are in place, monitor compliance, review
extended placements, and provide periodic reports. The HHSC, MHMR, and
PRS all estimate the need for a staff person to provide these services.
The total fiscal impact assumes one Program Specialist V at the HHSC plus
two additional FTEs to oversee the family-based alternatives system, one
Program Administrator IV at MHMR, and one CPS Specialist at PRS, for a
total of five Full Time Equivalents. Where applicable, the staff costs
are estimated at 50/50 FMAP. The HHSC, MHMR, and PRS assume the other
costs could be absorbed within current resources. According to DHS, the
level of services provided will be dependent upon the level of funding
appropriated through the Promoting Independence Exceptional Item.
Further, DHS estimates no additional impact from this bill, based on the
assumption that the Promoting Independence funding will be provided.
The following assumptions address the family-based alternatives section
of the bill:
It is assumed implementation of the system would be February 2002 and
that services required for implementation would be contracted out,
overseen by HHSC.
The HHSC assumed a sufficient number of waiver slots (estimated to be
409) would be made available for the children and are not included in the
numbers above. It is assumed that funds would be authorized at agencies
operating the waiver programs to allow for placement of children in
family-based alternatives.
The HHSC states estimates are for the six geographic regions of the state
with the highest concentration of children in institutions. These
estimates are solely administrative and do not include programmatic
costs related to waiver slots; fiscal implications for full
implementation would be significant and would require new funding.
Other health and human service agencies would also be impacted;
estimates for these costs are not included.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, HD, MB