LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 25, 2025 TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1398 by Kolkhorst (Relating to certain procedures in a suit affecting the parent-child relationship for a child placed in the conservatorship of the Department of Family and Protective Services and the provision of family preservation services and community-based foster care.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1398, As Introduced: a negative impact of ($1,719,085) through the biennium ending August 31, 2027. The fiscal implications of family preservation services that would be included in the resource transfer and in Stage III for each CBC region cannot be determined until the conclusion of the implementation plan and results from the external examiner and cost model. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($623,905)2027($1,095,180)2028($908,108)2029($3,708,935)2030($3,709,111)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGR Match For Medicaid758 Probable Savings/(Cost) fromGR Match For Title IV-E FMAP8008 Probable Savings/(Cost) fromFederal Funds5552026($616,491)($7,414)$0($99,719)2027($1,079,992)($15,188)$0($145,968)2028($899,156)($8,952)$0($55,305)2029($399,326)($8,953)($3,300,656)($4,971,380)2030($399,500)($8,955)($3,300,656)($4,971,391)Fiscal Year Change in Number of State Employees from FY 202520261.020271.020281.020291.020301.0 Fiscal AnalysisThe bill would expand the definition of family preservation services to include family-based safety services, and services approved under the Title IV-E state plan. The bill would also remove the requirement for an independent evaluation of each contractor's processes and fiscal and qualitive outcomes. The bill would include contract provisions to establish a timeline for the implementation of family preservation services in CBC. The bill would also allow DFPS to transfer the provision of family preservation services to the contactor if the contractor is not under a corrective action plan, if the contractor has demonstrated capacity to provide services, and an external review indicates the contractor has adequate system and processes in place. The bill would require DFPS to conduct an annual review of contractor performance.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 25, 2025
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1398 by Kolkhorst (Relating to certain procedures in a suit affecting the parent-child relationship for a child placed in the conservatorship of the Department of Family and Protective Services and the provision of family preservation services and community-based foster care.), As Introduced
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1398 by Kolkhorst (Relating to certain procedures in a suit affecting the parent-child relationship for a child placed in the conservatorship of the Department of Family and Protective Services and the provision of family preservation services and community-based foster care.), As Introduced
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1398 by Kolkhorst (Relating to certain procedures in a suit affecting the parent-child relationship for a child placed in the conservatorship of the Department of Family and Protective Services and the provision of family preservation services and community-based foster care.), As Introduced
SB1398 by Kolkhorst (Relating to certain procedures in a suit affecting the parent-child relationship for a child placed in the conservatorship of the Department of Family and Protective Services and the provision of family preservation services and community-based foster care.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1398, As Introduced: a negative impact of ($1,719,085) through the biennium ending August 31, 2027. The fiscal implications of family preservation services that would be included in the resource transfer and in Stage III for each CBC region cannot be determined until the conclusion of the implementation plan and results from the external examiner and cost model.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1398, As Introduced: a negative impact of ($1,719,085) through the biennium ending August 31, 2027. The fiscal implications of family preservation services that would be included in the resource transfer and in Stage III for each CBC region cannot be determined until the conclusion of the implementation plan and results from the external examiner and cost model.
The fiscal implications of family preservation services that would be included in the resource transfer and in Stage III for each CBC region cannot be determined until the conclusion of the implementation plan and results from the external examiner and cost model.
General Revenue-Related Funds, Five- Year Impact:
2026 ($623,905)
2027 ($1,095,180)
2028 ($908,108)
2029 ($3,708,935)
2030 ($3,709,111)
All Funds, Five-Year Impact:
2026 ($616,491) ($7,414) $0 ($99,719)
2027 ($1,079,992) ($15,188) $0 ($145,968)
2028 ($899,156) ($8,952) $0 ($55,305)
2029 ($399,326) ($8,953) ($3,300,656) ($4,971,380)
2030 ($399,500) ($8,955) ($3,300,656) ($4,971,391)
2026 1.0
2027 1.0
2028 1.0
2029 1.0
2030 1.0
Fiscal Analysis
The bill would expand the definition of family preservation services to include family-based safety services, and services approved under the Title IV-E state plan. The bill would also remove the requirement for an independent evaluation of each contractor's processes and fiscal and qualitive outcomes. The bill would include contract provisions to establish a timeline for the implementation of family preservation services in CBC. The bill would also allow DFPS to transfer the provision of family preservation services to the contactor if the contractor is not under a corrective action plan, if the contractor has demonstrated capacity to provide services, and an external review indicates the contractor has adequate system and processes in place. The bill would require DFPS to conduct an annual review of contractor performance.
Methodology
According to DFPS, since the agency is no longer required to have an independent process evaluation this would result in annual cost savings. It is assumed the savings would total $215,000 in General Revenue in each fiscal year.To establish a timeline for the implementation of family preservation services to Single Source Continuum Contractors (SSCC) in Community-based Care (CBC), this analysis assumes the need for a third-party contract to develop the cost model to review current practices and how caseload changes will impact financial feasibility for the SSCCs. It is assumed that there would be a one-time cost of $500,000 in General Revenue in fiscal year 2028 for the contract.This analysis also assumes the need to procure an external reviewer to assess an SSCC's readiness for the transfer of family preservation services responsibilities. DFPS assumes for current SSCCs, that are not on a corrective action plan and who pass the external review implementation, would begin at the end of fiscal year 2028 as family preservation services would be implemented after case management is transitioned. For new SSCCs, DFPS anticipates that near the end of fiscal year 2028 the assessment of family preservation services would begin. The cost for the external evaluator is assumed to be $525,000 in All Funds in each fiscal year beginning in fiscal year 2027. The cost is based on the current Process Evaluation contract. DFPS assumes $75,000 per SSCC with 7 regions being eligible for review in fiscal year 2027. DFPS assumes that in fiscal year 2026 they will procure the contract with the external evaluator and therefore reviews would not begin until fiscal year 2027.To conduct the required annual performance review, this analysis assumes 1.0 Records Analyst V FTE would be needed to conduct the review for family preservation services and ongoing development work for existing CBCs. According to DFPS, the Texas Family First Pilot program will end after fiscal year 2025 due to the expiration of the federal grant. This analysis assumes the two regions that were included in the pilot are still eligible for family preservation services. To date, funding for those regions total $8,216,719 in All Funds in each fiscal year and this analysis assumes the same costs in fiscal years 2029 and 2030 following the external review. While not included in the above amounts, DFPS estimates that to expand the pilot statewide, it would likely result in an additional $13,596,575 in General Revenue each fiscal year assuming there would be on average 925 families would be served and there would be no change in the court-ordered services that families in the pilot would receive. According to DFPS, families of a child who are the subject of a monitored return would not be eligible for family preservation services under the State Title IV-E plan since these children are not candidates for foster care since they are already in DFPS conservatorship. Therefore, any services for these families would come out of General Revenue Funds.According to DFPS, they cannot determine the fiscal implications for family preservation services that would be included in Stage III of each CBC region until the conclusion of the implementation plan and results from the external examiner. Additionally, DFPS is unable to determine the fiscal implications of the resource transfer for SSCCs for family preservation services until the conclusion of the cost model.This analysis assumes Information Management Protective Adults and Children in Texas (IMPACT) system and Contracts and Grants Management system modifications are needed to document annual SSCC performance reviews, collect performance measures identified in the bill, and update contract documentation. This analysis assumes 3.0 System Analyst V Contracted FTEs would be needed in fiscal years 2026 and 2027 to complete 6,040 hours of work in fiscal year 2026 and 6,360 hours of work in fiscal year 2027.
Technology
Technology costs for IMPACT modifications are estimated to be $674,254 in All Funds in fiscal year 2026 and $719,146 in All Funds in fiscal year 2027.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 530 Family and Protective Services, Department of
212 Office of Court Administration, Texas Judicial Council, 530 Family and Protective Services, Department of
LBB Staff: b > td > JMc, NPe, ER, AN, NV
JMc, NPe, ER, AN, NV