TO: | Honorable Patrick M. Rose, Chair, House Committee on Human Services |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2902 by Harper-Brown (Relating to mandatory participation in certain TANF employment programs by certain persons.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | $5,111,255 |
2009 | $8,663,230 |
2010 | $9,538,664 |
2011 | $10,498,645 |
2012 | $11,560,080 |
Fiscal Year | Probable (Cost) from FEDERAL FUNDS - TANF (TWC) 555 |
Probable (Cost) from FEDERAL FUNDS- Federal Child Care (TWC) 555 |
Probable Savings from GENERAL REVENUE FUND (HHSC) 1 |
Probable Savings from GR MATCH FOR MEDICAID (HHSC) 758 |
---|---|---|---|---|
2008 | ($36,072,102) | ($38,686,362) | $66,564 | $5,044,691 |
2009 | ($37,590,276) | ($41,205,281) | $108,328 | $8,554,902 |
2010 | ($37,590,276) | ($41,205,281) | $112,886 | $9,425,778 |
2011 | ($37,590,276) | ($41,205,281) | $117,635 | $10,381,010 |
2012 | ($37,590,276) | ($41,205,281) | $122,583 | $11,437,497 |
Fiscal Year | Probable Savings from FEDERAL FUNDS - TANF (HHSC) 555 |
Probable Savings from FEDERAL FUNDS - Medicaid (HHSC) 555 |
---|---|---|
2008 | $1,071,052 | $7,683,606 |
2009 | $1,733,546 | $12,764,988 |
2010 | $1,806,474 | $14,046,619 |
2011 | $1,882,470 | $15,475,594 |
2012 | $1,961,664 | $17,056,289 |
Based on analysis by the Texas Workforce Commission (TWC), implementation of the bill would increase the average monthly number of adults served by approximately 6,000 clients eligible under TWC's criteria and 6,000 nonrecipient parents. The total cost would be $74,758,464 in Federal Funds in fiscal year 2008 and $78,795,557 in fiscal year 2009 and each year thereafter. Calculations assume an average annual cost of $965.76 per Choices client for fiscal years 2008-2012 and an average daily child care cost of $18.15 in fiscal year 2008 and $18.48 in fiscal years 2009-2012. Due to a decline in TANF caseloads, the Texas Workforce Commission can absorb the costs associated with serving this new population within existing resources. However, it would require a movement of funds within the child care strategies, leaving less funds available to provide child care services to at-risk children.
According to the Health and Human Services Commission (HHSC), implementation of the bill would decrease the average recipients per month for the TANF assistance program by 17,352 in fiscal year 2008, with a decrease of 31,309 by 2012. Medicaid caseloads for TANF adults would decrease by 3,359 recipient months per month in fiscal year 2008, with a decrease of 6,060 by 2012. Calculation of these decreases in caseloads are based on HHSC February 2007 update estimates. No net change in full-time equivalent levels are assumed; new work requirements specified by the bill would be offset by reduced workloads associated with fewer clients.
Source Agencies: | 320 Texas Workforce Commission, 529 Health and Human Services Commission
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LBB Staff: | JOB, CL, PP, VJC
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