LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
May 26, 2005

TO:
Honorable David Dewhurst, Lieutenant Governor, Senate
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
SB40 by Zaffirini (Relating to permanency planning procedures for children residing in state institutions. ), As Passed 2nd House



Estimated Two-year Net Impact to General Revenue Related Funds for SB40, As Passed 2nd House: a negative impact of ($340,948) through the biennium ending August 31, 2007.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($164,096)
2007 ($176,852)
2008 ($189,607)
2009 ($202,363)
2010 ($215,118)




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1
2006 ($164,096)
2007 ($176,852)
2008 ($189,607)
2009 ($202,363)
2010 ($215,118)

The bill would require the Department of Aging and Disability Services (DADS) to have permanency plans for children residing in state institutions developed by a local mental retardation authority, a private entity that does not provide long-term institutional care, or department staff.


Fiscal Analysis

The Department of Aging and Disability Services (DADS) indicates that there would be costs to shift permanency planning currenty performed by mental retardation service providers (Home and Community-Based Services and Intermediate Care Facilities for Persons with Mental Retardation) to the entities allowed under the bill. DADS indicates that there would not be costs for permanency planning for children residing in nursing homes because it is not currently performed by providers of institutional care.


Methodology

DADS indicates that there would be a cost to provide permanency planning to 1,163 children currently receiving institutional care. According to DADS, permanency planning would be performed twice each year per child at an estimated hourly cost of $16.61 (service coordinator salary and benefits). DADS estimates that it would take on average four hours to complete a permanency plan. The total cost for permanency planning for children currently receiving institutional care is estimated to be $154,529 in General Revenue per year.

In addition to children currently receiving institutional care, DADS estimates that 8 new consumers per month each year would require permanency planning. It is assumed that each new consumer would receive four hours of permanency planning twice per year at an hourly cost of $16.61. It is estimated that it would cost $9,567 in General Revenue in fiscal year 2006 and $22,322 in General Revenue in fiscal year 2007 to provide permanency planning to these children.

According to DADS, federal funds would not be available because permanency planning would not meet federal requirements for targeted case management. The total cost for permanency planning is estimated to be $164,096 in General Revenue in fiscal year 2006 and $176,852 in General Revenue in fiscal year 2007.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
529 Health and Human Services Commission, 539 Department of Aging and Disability Services
LBB Staff:
JOB, CL, KF, SSt