LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 22, 2013 TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB743 by Miller, Rick (Relating to the regulation of certain child-care facilities; increasing a fee.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB743, Committee Report 1st House, Substituted: a positive impact of $762,434 through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 22, 2013
TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB743 by Miller, Rick (Relating to the regulation of certain child-care facilities; increasing a fee.), Committee Report 1st House, Substituted
TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB743 by Miller, Rick (Relating to the regulation of certain child-care facilities; increasing a fee.), Committee Report 1st House, Substituted
Honorable Richard Peña Raymond, Chair, House Committee on Human Services
Honorable Richard Peña Raymond, Chair, House Committee on Human Services
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB743 by Miller, Rick (Relating to the regulation of certain child-care facilities; increasing a fee.), Committee Report 1st House, Substituted
HB743 by Miller, Rick (Relating to the regulation of certain child-care facilities; increasing a fee.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB743, Committee Report 1st House, Substituted: a positive impact of $762,434 through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB743, Committee Report 1st House, Substituted: a positive impact of $762,434 through the biennium ending August 31, 2015.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $218,428 2015 $544,006 2016 $560,323 2017 $576,838 2018 $593,553
2014 $218,428
2015 $544,006
2016 $560,323
2017 $576,838
2018 $593,553
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGR Match For Medicaid758 Probable Savings/(Cost) fromFederal Funds555 Probable Revenue Gain fromGeneral Revenue Fund1 2014 ($1,082,984) ($1,261) ($14,993) $1,302,673 2015 ($733,110) ($895) ($11,458) $1,278,011 2016 ($733,110) ($895) ($11,458) $1,294,328 2017 ($733,110) ($895) ($11,458) $1,310,843 2018 ($733,110) ($895) ($11,458) $1,327,558 Fiscal Year Change in Number of State Employees from FY 2013 2014 12.9 2015 12.9 2016 12.9 2017 12.9 2018 12.9
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGR Match For Medicaid758 Probable Savings/(Cost) fromFederal Funds555 Probable Revenue Gain fromGeneral Revenue Fund1 2014 ($1,082,984) ($1,261) ($14,993) $1,302,673 2015 ($733,110) ($895) ($11,458) $1,278,011 2016 ($733,110) ($895) ($11,458) $1,294,328 2017 ($733,110) ($895) ($11,458) $1,310,843 2018 ($733,110) ($895) ($11,458) $1,327,558
2014 ($1,082,984) ($1,261) ($14,993) $1,302,673
2015 ($733,110) ($895) ($11,458) $1,278,011
2016 ($733,110) ($895) ($11,458) $1,294,328
2017 ($733,110) ($895) ($11,458) $1,310,843
2018 ($733,110) ($895) ($11,458) $1,327,558
Fiscal Year Change in Number of State Employees from FY 2013 2014 12.9 2015 12.9 2016 12.9 2017 12.9 2018 12.9
2014 12.9
2015 12.9
2016 12.9
2017 12.9
2018 12.9
Fiscal Analysis
The bill would modify Chapter 42 of the Human Resources Code, relating to the regulation of certain child care facilities. The bill would remove the exemptions for licensing and regulation of certain Before and After School Programs (BAPs). The bill would also require the Department of Family and Protective Services (DFPS) to provide inspections for BAPs meeting certain criteria. Additionally, the bill would increase the annual license fees levied against child-care facilities.
Methodology
In fiscal year 2014, DFPS assumes that there will be 589 additional BAPs operated by public elementary schools subject to DFPS regulation. Based on historical growth patterns, it is assumed the public entities will increase by 6 BAPs per year (1 percent growth). It is assumed that DFPS would require 7 additional inspectors, 2 additional investigators, 1 additional staff in the Centralized Background Check Unit, and 2.7 new supporting staff, as well as 0.16 FTEs at the Health and Human Services Commission, all of whom would be hired at the start of fiscal year 2014. Salaries and fringe benefits associated with the 12.9 FTEs total $565,075 in fiscal year 2014 and in 2015. Consumable supplies, utilities, travel, rent and other operating expenses total $284,368 in fiscal year 2014 and $180,388 in fiscal year 2015. DFPS indicates that the majority of the employees at the BAPs would have already successfully completed a background check and no additional costs beyond the FTEs would be associated with this provision. The bill would increase the per child amount of the annual license fee from $1 to $2, which would result in a positive impact to General Revenue of about $1.3 million per year. About $1.1 million of that would be for the current population of children in these programs for which DFPS collects a fee. It is assumed this population will grow at 1.3%. The remainder would be collected from the newly-licensed BAPs.
In fiscal year 2014, DFPS assumes that there will be 589 additional BAPs operated by public elementary schools subject to DFPS regulation. Based on historical growth patterns, it is assumed the public entities will increase by 6 BAPs per year (1 percent growth). It is assumed that DFPS would require 7 additional inspectors, 2 additional investigators, 1 additional staff in the Centralized Background Check Unit, and 2.7 new supporting staff, as well as 0.16 FTEs at the Health and Human Services Commission, all of whom would be hired at the start of fiscal year 2014. Salaries and fringe benefits associated with the 12.9 FTEs total $565,075 in fiscal year 2014 and in 2015. Consumable supplies, utilities, travel, rent and other operating expenses total $284,368 in fiscal year 2014 and $180,388 in fiscal year 2015. DFPS indicates that the majority of the employees at the BAPs would have already successfully completed a background check and no additional costs beyond the FTEs would be associated with this provision.
The bill would increase the per child amount of the annual license fee from $1 to $2, which would result in a positive impact to General Revenue of about $1.3 million per year. About $1.1 million of that would be for the current population of children in these programs for which DFPS collects a fee. It is assumed this population will grow at 1.3%. The remainder would be collected from the newly-licensed BAPs.
Technology
The bill would create a need to update existing functionality in CLASS, CLASSMate, and the DFPS public website. Estimated technology costs total $249,795 in fiscal year 2014.
Local Government Impact
School districts would be required to take measures necessary to comply with child care licensing standards. Actions required would depend on characteristics specific to individual schools and would be expected to vary widely from district to district.
Source Agencies: 530 Family and Protective Services, Department of, 304 Comptroller of Public Accounts
530 Family and Protective Services, Department of, 304 Comptroller of Public Accounts
LBB Staff: UP, CL, MB, NB, VJC
UP, CL, MB, NB, VJC