LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 18, 2007

TO:	Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2683 by Chisum (Relating to funding for programs that support the development of healthy marriages or the strengthening of families.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB2683, As Engrossed: an impact of $0 through the biennium ending August 31, 2009.

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
2008	$0
2009	$0
2010	$0
2011	$0
2012	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from FEDERAL FUNDS - TANF 555	Change in Number of State Employees from FY 2007
2008	($4,862,568)	3.0
2009	($4,862,568)	3.0
2010	($4,862,568)	3.0
2011	($4,862,568)	3.0
2012	($4,862,568)	3.0

Fiscal Analysis

Section 1 of the bill would amend Subchapter A, Chapter 31 of the Human Resources Code by adding two new sections. Section 31.017 would require the Health and Human Services Commission (HHSC) to administer a grant program to provide grants in amounts not to exceed $50,000 to programs for low-income persons that support the development of health marriages or strengthening of families. Section 31.018 would require HHSC to spend a minimum of one percent of the amount received under the Temporary Assistance for Needy Families (TANF) block grant during each biennium to fund programs for low-income persons that support the development of health marriages or strengthening of families, including both the grant program that would be established by the bill and the existing healthy marriage development program. The bill would take effect September 1, 2007.

The cost to implement the bill is included above as TANF Federal Funding. However, if insufficient TANF funds are available, funding may need to be redirected from existing programs or the program may not be implemented.

Methodology

Calculations by HHSC assume that one percent of the annual TANF block grant is $4,862,568. Total costs of approximately $261,000 in fiscal year 2008 and $250,000 in fiscal year 2009 and each year thereafter (detailed below) would be needed to manage the grant program, with the remaining amount to be awarded as grants.

HHSC would require 3.0 additional FTEs to implement the bill to increase current staffing levels for program management of the TANF Healthy Marriage Program. FTE costs are estimated to be $219,314 for fiscal year 2008 and each year thereafter, including $48,362 per year in associated employee benefits. HHSC indicates that other related expenses (other operating expense, IT, and initial one-time costs) to implement the bill are estimated to be $41,930 in fiscal year 2008 and $31,055 in fiscal year 2009 and each year thereafter.

Technology

HHSC estimates that implementation of the bill would have a Technology Impact of $2,715 in fiscal year 2008 and in each year thereafter for seat management. These amounts are included in the total for other expenses in the Methodology section above.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

320 Texas Workforce Commission, 529 Health and Human Services Commission

LBB Staff:

JOB, CL, KJG, PP, VJC