LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION March 18, 2017 TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB203 by West (Relating to removing the deadline for the Department of Family and Protective Services to enter into permanency care assistance agreements.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB203, As Introduced: a positive impact of $3,401,204 through the biennium ending August 31, 2019.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
March 18, 2017
TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB203 by West (Relating to removing the deadline for the Department of Family and Protective Services to enter into permanency care assistance agreements.), As Introduced
TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB203 by West (Relating to removing the deadline for the Department of Family and Protective Services to enter into permanency care assistance agreements.), As Introduced
Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB203 by West (Relating to removing the deadline for the Department of Family and Protective Services to enter into permanency care assistance agreements.), As Introduced
SB203 by West (Relating to removing the deadline for the Department of Family and Protective Services to enter into permanency care assistance agreements.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB203, As Introduced: a positive impact of $3,401,204 through the biennium ending August 31, 2019.
Estimated Two-year Net Impact to General Revenue Related Funds for SB203, As Introduced: a positive impact of $3,401,204 through the biennium ending August 31, 2019.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2018 $1,022,527 2019 $2,378,677 2020 $3,768,106 2021 $5,093,865 2022 $6,424,059
2018 $1,022,527
2019 $2,378,677
2020 $3,768,106
2021 $5,093,865
2022 $6,424,059
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGR Match For Title IV-E FMAP8008 Probable Savings/(Cost) fromFederal Funds555 2018 $737,340 $285,187 $358,205 2019 $1,611,374 $767,303 $1,013,968 2020 $2,528,395 $1,239,711 $1,651,192 2021 $3,410,770 $1,683,095 $2,248,127 2022 $4,284,407 $2,139,652 $2,862,798
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGR Match For Title IV-E FMAP8008 Probable Savings/(Cost) fromFederal Funds555 2018 $737,340 $285,187 $358,205 2019 $1,611,374 $767,303 $1,013,968 2020 $2,528,395 $1,239,711 $1,651,192 2021 $3,410,770 $1,683,095 $2,248,127 2022 $4,284,407 $2,139,652 $2,862,798
2018 $737,340 $285,187 $358,205
2019 $1,611,374 $767,303 $1,013,968
2020 $2,528,395 $1,239,711 $1,651,192
2021 $3,410,770 $1,683,095 $2,248,127
2022 $4,284,407 $2,139,652 $2,862,798
Fiscal Analysis
The bill would repeal Section 264.857 of the Family Code, removing the deadline for the Department of Family and Protective Services (DFPS) to enter into new permanency care assistance (PCA) agreements.
Methodology
It is assumed removing the deadline for DFPS to enter into new PCA agreements will result in an increase in PCA agreements, reducing the need for relative caregiver monetary assistance payments and foster care placements. The actual number of children who might be diverted from foster care or relative caregiver monetary assistance is not known. The estimated fiscal implication of this legislation is based on the assumptions outlined below, but General Revenue savings would be higher if more children were diverted from foster care and lower if more children were diverted from relative caregiver monetary assistance. If 76 percent of children (or more) were diverted from relative caregiver monetary assistance, there could be a General Revenue cost from continuing new PCA agreements. It is assumed 50 percent of new PCA agreements would otherwise have resulted in a foster care placement and the remaining 50 percent would otherwise have resulted in relative caregiver monetary assistance payments for families who would opt not to become licensed foster homes without the option of PCA. Relative caregiver monetary assistance payments have a lower cost than PCA while foster care has a higher cost. It is assumed there will be 433 additional average monthly PCA payments at an estimated cost of $2.1 million in All Funds, including $1.3 million in General Revenue, for fiscal year 2018 increasing each fiscal year to 3,554 additional average monthly PCA payments at an estimated cost of $17.4 million in All Funds, including $11.3 million in General Revenue, by fiscal year 2022.For children moving to PCA from foster care placements, it is assumed the average daily savings would be approximately $40 (the average daily cost of foster care at the basic level of care) and that 98.5 percent of foster care costs would be paid by DFPS. The estimated savings to DFPS-paid foster care is $3.1 million in All Funds, including $2.0 million in General Revenue, in fiscal year 2018 increasing each fiscal year to $25.5 million in All Funds, including $16.5 million in General Revenue, by fiscal year 2022.For children moving to PCA from relative caregiver monetary assistance, it is assumed there would have been a payment of $1,000 in the first year of placement and $495 in each subsequent year. The estimated savings to relative caregiver monetary assistance is $0.4 million in All Funds in fiscal year 2018 increasing each fiscal year to $1.2 million by fiscal year 2022. Relative caregiver monetary assistance payments are fully funded with General Revenue.The net estimated savings from the provisions of the bill is $1.4 million in All Funds, including $1.0 million in General Revenue, in fiscal year 2018 with the cost expected to increase each year due to caseload growth, reaching $9.3 million in All Funds, including $6.4 million in General Revenue, by fiscal year 2022.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 530 Family and Protective Services, Department of
530 Family and Protective Services, Department of
LBB Staff: UP, KCA, LR, JLi
UP, KCA, LR, JLi