LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION Revision 1 May 20, 2009 TO: Honorable Patrick M. Rose, Chair, House Committee on Human Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1540 by Hartnett (Relating to license requirements and fees for certain child-care programs operated by public or private schools.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB1540, Committee Report 1st House, Substituted: a positive impact of $2,510,056 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
Revision 1
May 20, 2009
Revision 1
Revision 1
TO: Honorable Patrick M. Rose, Chair, House Committee on Human Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1540 by Hartnett (Relating to license requirements and fees for certain child-care programs operated by public or private schools.), Committee Report 1st House, Substituted
TO: Honorable Patrick M. Rose, Chair, House Committee on Human Services
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB1540 by Hartnett (Relating to license requirements and fees for certain child-care programs operated by public or private schools.), Committee Report 1st House, Substituted
Honorable Patrick M. Rose, Chair, House Committee on Human Services
Honorable Patrick M. Rose, Chair, House Committee on Human Services
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB1540 by Hartnett (Relating to license requirements and fees for certain child-care programs operated by public or private schools.), Committee Report 1st House, Substituted
HB1540 by Hartnett (Relating to license requirements and fees for certain child-care programs operated by public or private schools.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB1540, Committee Report 1st House, Substituted: a positive impact of $2,510,056 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1540, Committee Report 1st House, Substituted: a positive impact of $2,510,056 through the biennium ending August 31, 2011.
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 2010 $1,229,291 2011 $1,280,765 2012 $1,280,765 2013 $1,280,765 2014 $1,280,765
2010 $1,229,291
2011 $1,280,765
2012 $1,280,765
2013 $1,280,765
2014 $1,280,765
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 Probable (Cost) fromGeneral Revenue Fund1 Probable (Cost) fromGR Match For Medicaid758 Probable (Cost) fromFederal Funds555 2010 $2,069,137 ($839,083) ($763) ($8,620) 2011 $2,035,327 ($754,188) ($374) ($4,224) 2012 $2,035,327 ($754,188) ($374) ($4,224) 2013 $2,035,327 ($754,188) ($374) ($4,224) 2014 $2,035,327 ($754,188) ($374) ($4,224) Fiscal Year Change in Number of State Employees from FY 2009 2010 10.7 2011 10.7 2012 10.7 2013 10.7 2014 10.7
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 Probable (Cost) fromGeneral Revenue Fund1 Probable (Cost) fromGR Match For Medicaid758 Probable (Cost) fromFederal Funds555 2010 $2,069,137 ($839,083) ($763) ($8,620) 2011 $2,035,327 ($754,188) ($374) ($4,224) 2012 $2,035,327 ($754,188) ($374) ($4,224) 2013 $2,035,327 ($754,188) ($374) ($4,224) 2014 $2,035,327 ($754,188) ($374) ($4,224)
2010 $2,069,137 ($839,083) ($763) ($8,620)
2011 $2,035,327 ($754,188) ($374) ($4,224)
2012 $2,035,327 ($754,188) ($374) ($4,224)
2013 $2,035,327 ($754,188) ($374) ($4,224)
2014 $2,035,327 ($754,188) ($374) ($4,224)
Fiscal Year Change in Number of State Employees from FY 2009 2010 10.7 2011 10.7 2012 10.7 2013 10.7 2014 10.7
2010 10.7
2011 10.7
2012 10.7
2013 10.7
2014 10.7
Fiscal Analysis
The bill would eliminate the current exemption from child care licensing requirements provided for certain accredited public school before and after school child care programs that are operated by or under certain types of contracts with an accredited public school. The bill would increase the facility capacity fee from $1 per child to $2 per child. The bill would take effect September 1, 2009.
The bill would eliminate the current exemption from child care licensing requirements provided for certain accredited public school before and after school child care programs that are operated by or under certain types of contracts with an accredited public school. The bill would increase the facility capacity fee from $1 per child to $2 per child. The bill would take effect September 1, 2009.
Methodology
Based on data obtained from the Texas Education Agency, calculations by the Department of Family and Protective Services assume that 483 public schools would require licenses to operate existing before-school and after-school programs. For schools operating both, it is assumed that only one license would be required to operate both programs. It is also assumed that additional Child Care Licensing investigators would be needed for abuse/neglect allegations that are currently being investigated by Child Protective Services, and that there may be an offsetting reduction in CPS caseloads. Calculations assume 6,762 new criminal history background checks would be conducted, as required by statute, for issuance of a license. According to the agency, the yearly number of checks remains fairly constant due to high turnover in the child care industry. Historically, 10% of FBI and 25% of Department of Public Safety (DPS) criminal history background check requests produce matches, which would result in a need for additional staff to process the matches. The bill would result in a total increase in revenue of $1,830,540 in fiscal year 2010 and $1,796,730 in each fiscal year thereafter from licensing fees and the capacity fee increase ($3,627,270 for the 2010-11 biennium) and from criminal history check fees ($463,670 for the biennium). However, a portion of the criminal history check revenue ($233,289 for the biennium) is returned to the FBI for professional services as required by federal statute and is reflected as a cost to DPS, below. Costs for DFPS are estimated to be $731,822 in All Funds for fiscal year 2010 and $642,142 in All Funds for each fiscal year thereafter. FTE needs are estimated at 10.7 per fiscal year. The fiscal impact includes approximately $72,000 and 0.2 FTEs per fiscal year for enterprise support services. The cost would be to DFPS, but the 0.2 FTEs would be at the Health and Human Services Commission. Costs for DPS are estimated to be $116,645 in fiscal year 2010 and each fiscal year thereafter in General Revenue Funds for amounts returned to the FBI as noted above.
Based on data obtained from the Texas Education Agency, calculations by the Department of Family and Protective Services assume that 483 public schools would require licenses to operate existing before-school and after-school programs. For schools operating both, it is assumed that only one license would be required to operate both programs. It is also assumed that additional Child Care Licensing investigators would be needed for abuse/neglect allegations that are currently being investigated by Child Protective Services, and that there may be an offsetting reduction in CPS caseloads.
Calculations assume 6,762 new criminal history background checks would be conducted, as required by statute, for issuance of a license. According to the agency, the yearly number of checks remains fairly constant due to high turnover in the child care industry. Historically, 10% of FBI and 25% of Department of Public Safety (DPS) criminal history background check requests produce matches, which would result in a need for additional staff to process the matches.
The bill would result in a total increase in revenue of $1,830,540 in fiscal year 2010 and $1,796,730 in each fiscal year thereafter from licensing fees and the capacity fee increase ($3,627,270 for the 2010-11 biennium) and from criminal history check fees ($463,670 for the biennium). However, a portion of the criminal history check revenue ($233,289 for the biennium) is returned to the FBI for professional services as required by federal statute and is reflected as a cost to DPS, below.
Costs for DFPS are estimated to be $731,822 in All Funds for fiscal year 2010 and $642,142 in All Funds for each fiscal year thereafter. FTE needs are estimated at 10.7 per fiscal year. The fiscal impact includes approximately $72,000 and 0.2 FTEs per fiscal year for enterprise support services. The cost would be to DFPS, but the 0.2 FTEs would be at the Health and Human Services Commission.
Costs for DPS are estimated to be $116,645 in fiscal year 2010 and each fiscal year thereafter in General Revenue Funds for amounts returned to the FBI as noted above.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 405 Department of Public Safety, 530 Family and Protective Services, Department of
405 Department of Public Safety, 530 Family and Protective Services, Department of
LBB Staff: JOB, CL, VJC, SD, MB
JOB, CL, VJC, SD, MB