Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB175 by González, Mary (relating to establishing optional certifications for child-care providers participating in the Texas Rising Star Program and establishing a grant program for those providers.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
However, the bill could lead to a reduction in the amount of child care services and operations funded by the federal Child Care and Development Fund, as those funds are traditionally allocated for child care services and operations and it is assumed that the Texas Workforce Commission would need to reallocate those funds to implement the bill's provisions.
The bill would require the Texas Workforce Commission (TWC) to create optional certifications that a child-care provider may obtain to enhance the provider's rating under the Texas Rising Star Program, including one for providers who provide for the inclusion of children with disabilities with their typically developing peers. The bill would require TWC to provide annual grants to providers receiving the optional certification of an amount based on the age groups and capacity of the provider.
TWC estimates a five-year cost of $33,286,702 from the federal Child Care and Development Fund (CCDF) to provide annual grants to providers who obtain the new certifications. As current appropriations already maximize the drawdown of all available CCDF matching funds, this analysis assumes there would be no significant fiscal impact to the State. However, as most of the CCDF matching funds are traditionally allocated for child care services, it is assumed that the agency would need to reallocate existing CCDF funds to implement the bill's provisions, which could lead to a reduction in the amount of child care services and operations funded by CCDF funds.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.