LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
Revision 1
 
March 26, 2007

TO:
Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
SB1098 by Patrick, Dan (Relating to a subsidy for health benefits coverage for certain adopted children.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB1098, As Introduced: a negative impact of ($1,399,470) 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.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008 ($358,080)
2009 ($1,041,390)
2010 ($1,751,655)
2011 ($2,487,098)
2012 ($3,253,290)




Fiscal Year Probable (Cost) from
GENERAL REVENUE FUND
1
2008 ($358,080)
2009 ($1,041,390)
2010 ($1,751,655)
2011 ($2,487,098)
2012 ($3,253,290)

Fiscal Analysis

The bill would amend Section 162.304, Family Code, to require the Department of Family and Protective Services to pay $150 per month for health benefits coverage for children under age 18 who are adopted from the agency’s conservatorship and not eligible for Medicaid.  It would be effective on September 1, 2007.


Methodology

The Department of Family and Protective Services estimates that 10 percent of consummated adoptions are not eligible for adoption assistance which means the children are not eligible for categorically determined Medicaid.  It is assumed that 3,664 adoptions would be consummated in fiscal year 2008, 3,908 in fiscal year 2009, 3,978 in fiscal year 2010, 4,177 in fiscal year 2011, and 4,324 in fiscal year 2012.  The adoptions would be phased-in each year, with one-twelfth of the adoptions taking place in September, another one-twelfth in October, etc.  Ten percent of the children would receive the health benefits subsidy, and all of these children would receive the subsidy for more than five years.  The cost would rise steadily from $0.4 million in fiscal year 2008 to $3.3 million in fiscal year 2012.  General Revenue Funds would be used to finance the program.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
530 Family and Protective Services, Department of
LBB Staff:
JOB, CL, PP, NM