TO: | Honorable Patrick M. Rose, Chair, House Committee on Human Services |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB3759 by Naishtat (Relating to providing monetary and other related support services through the TANF program and other state programs.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | ($1,345,400) |
2009 | ($60,545,310) |
2010 | ($64,948,704) |
2011 | ($69,688,930) |
2012 | ($74,788,679) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
Probable (Cost) from VENDOR DRUG REBATES-MEDICAID 706 |
Probable (Cost) from GR MATCH FOR MEDICAID 758 |
Probable (Cost) from Vendor Drug Rebates-Sup Rebates 8081 |
---|---|---|---|---|
2008 | ($920,400) | $0 | ($425,000) | $0 |
2009 | ($29,550,314) | ($589,574) | ($30,994,996) | ($137,504) |
2010 | ($30,795,251) | ($664,366) | ($34,153,453) | ($154,947) |
2011 | ($32,086,533) | ($759,603) | ($37,602,397) | ($177,159) |
2012 | ($33,375,146) | ($868,504) | ($41,413,533) | ($202,558) |
Fiscal Year | Probable (Cost) from FEDERAL FUNDS - Medicaid 555 |
Probable (Cost) from FEDERAL FUNDS - TANF 555 |
Probable Revenue Gain from VENDOR DRUG REBATES-MEDICAID 706 |
Probable Revenue Gain from Vendor Drug Rebates-Sup Rebates 8081 |
---|---|---|---|---|
2008 | ($425,000) | ($1,029,600) | $0 | $0 |
2009 | ($47,509,915) | ($74,722,000) | $589,574 | $137,504 |
2010 | ($52,300,942) | ($76,821,550) | $664,366 | $154,947 |
2011 | ($57,643,873) | ($79,005,580) | $759,603 | $177,159 |
2012 | ($63,555,092) | ($81,339,502) | $868,504 | $202,558 |
Fiscal Year | Probable Savings from FEDERAL FUNDS - TANF 555 |
Change in Number of State Employees from FY 2007 |
---|---|---|
2008 | $0 | 0.0 |
2009 | $57,954,291 | 17.0 |
2010 | $60,406,206 | 18.0 |
2011 | $62,949,645 | 18.0 |
2012 | $65,530,506 | 19.0 |
HHSC assumes an implementation date of September 1, 2008 in the calculations below except for TIERS modifications that would begin in fiscal year 2008. HHSC estimates that implementation of the bill would require 17 additional FTEs in fiscal year 2009 to staff the pre-sanction review and work support programs. This would rise to 19 FTEs in fiscal year 2012. FTE costs are estimated to be $695,041 for fiscal year 2009, including $153,268 in associated employee benefits, increasing to $776,602 in fiscal year 2012, with associate benefit costs of $171,253. HHSC indicates that other related expenses to implement the bill (other operating expenses, IT, and initial one-time costs) are estimated to be $2,800,000 in fiscal year 2008 and a total of $3,552,332 for fiscal years 2009-2012. Total Client Services costs are estimated to be $97,871,359 in All Funds in fiscal year 2009 increasing to $127,129,031 in All Funds in fiscal year 2012.
Implementation of the state program for those with barriers to employment would result in a $28,362,212 savings to TANF Federal Funds in fiscal year 2009, increasing to $32,040,945 in 2012, as the cost would shift to General Revenue funds. The net increase in General Revenue expenditures includes an average reduction of $1.8 million per year in TANF Maintenance of Effort (MOE). In order for the state to continue to qualify for the full TANF block grant, the state would need to designate other qualified expenditures as TANF MOE. HHSC estimates that implementation of the bill would result in an average increase in TANF cash recipients of 7,824 in fiscal year 2009, increasing to 8,847 by fiscal year 2012. The average Medicaid recipient months per month would increase by 20,082 in fiscal year 2009, increasing to 22,725 in fiscal year 2012.
TWC indicates that the pre-sanction review process and work support program required by the bill would result in increased costs to the Choices program due to increased caseloads. TWC also indicates that costs to meet federal participation rates will increase due to reduced efficiencies from sanctioned individuals retaining Medicaid benefits. Total costs are estimated to be $55,694,209 in fiscal year 2009, increasing to $59,879,351 in fiscal year 2012. These costs include an average of $26.2 million per year in Choices Child Care costs. Without additional child care funding, there would need to be a corresponding reduction of 2,834 At-Risk children served per day in fiscal year 2009, increasing to 2,873 in fiscal year 2012. TWC estimates that implementation of the bill will result in a savings of $29,592,079 in TANF Federal Funds in fiscal year 2009, increasing to $33,489,561 in fiscal year 2012 related to implementation of the state program for those with barriers to employment.
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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