Colorado Legislative Council Staff

STATE and LOCAL

REVISED CONDITIONAL FISCAL NOTE

(replaces Fiscal Note dated March 17, 1998)

State General Fund Expenditure Impact

Local Expenditure Impact

Federal Funds Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-438

Rep. Kreutz

Sen. Coffman

Date:

Bill Status:

Fiscal Analyst:

April 16, 1998

Senate Appropriations

Janis Baron (866-3523)

 

TITLE:            CONCERNING AUTHORIZATION OF COUNTY TRANSFERS OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES FUNDS TO PROGRAMS FUNDED BY TITLE XX OF THE FEDERAL “SOCIAL SECURITY ACT”.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund



 



 

State Expenditures

General Fund

Cash Funds Exempt — Local Funds

Federal Funds


May Increase — Cannot Be Quantified

See Local Government Impact

May Increase — Cannot Be Quantified

FTE Position Change

None

None

Local Government Impact — See Local Government Impact section of this fiscal note.


            The reengrossed bill, as amended, contains the following provisions related to moneys appropriated for the Colorado Works Program, child welfare services, and child care services as noted below:

 

               for state FY 1997-98 and each state fiscal year thereafter, allows a county to transfer up to 10 percent of its county block grant for the Colorado Works Program that is designated as federal funds and specified as being available for transfer to programs funded by Title XX of the federal “Social Security Act”;

 

               provides that if funds transferred are used for child welfare services, the county may only make the transfer after all funds in its capped or targeted allocation for child welfare services have been exhausted on allowable expenditures;

 

               provides that a county shall not be required to appropriate funds to provide a county match for any funds transferred; and

 

               requires the State Board of Human Services to promulgate rules governing procedures for the transfers.


            The bill is effective upon signature of the Governor.



State Expenditures


            Moneys appropriated in FY 1997-98 for the Colorado Works Program, Child Welfare Services Block Grant, Child Care Block Grant, and Other category are identified in Table 1, on page 3, and represent the appropriation blocks potentially affected by the bill. The Temporary Aid to Needy Families (TANF) Block Grant represents all federal moneys allocated to counties for the Colorado Works Program. The Child Welfare Services and Child Care Services Block Grants combine programs and administrative costs from a number of Long Bill line items that are partially funded by Title XX moneys. The Other category combines costs from various Long Bill line items in County Administration that are partially funded by Title XX, wherein Title XX eligible costs are primarily for adult protective services. Title XX is also known as the federal Social Services Block Grant. [See the Facts and Assumptions section of this fiscal note for a brief discussion of Title XX funds.]


            The ability to transfer, amount of transfer, and use of transfer funds among various Title XX programs will be made on a county-by-county basis. Because it is a county option and many variables cannot be quantified at this time, the bill is assessed as having a conditional fiscal impact.



Fiscal Implications of HB 98-1137


            Title XX — The federal budget agreement implementing TANF, has reduced the state’s Title XX allotment $4.8 million from the pre-TANF levels. The state’s Title XX allotments for the past three federal fiscal years are identified accordingly:


            FFY 1995-96 — $ 37,411,303

             FFY 1996-97 — $ 34,911,586

            FFY 1997-98 — $ 32,601,503


            Neither the FY 1997-98 appropriation nor the FY 1998-99 budget request for DHS reflect these reduced Title XX allotments. Based upon current projections, DHS indicates that carry-over funds from prior years’ Title XX allotments will be available to fund programs at their appropriated levels through the end of FY 1998-99 despite these reductions. Should reductions to future allotments continue, there will be no carry-over funds available to offset these reductions, leaving three alternatives: (1) reduce services funded with Title XX; (2) increase General Fund support to maintain services at current level; and (3) allow counties to provide Title XX services with transferred TANF funds.

 

 

Local Government Impact


            Because it is a county option and many variables currently cannot be quantified, dollar amounts cannot be identified. This fiscal note assumes that each county exercising its option to transfer under HB 98-1137, will maintain at the local level, any information required to enable the state to claim and receive the federal funds being transferred, and that no state automated systems will be modified to capture information related to these transfers.


Table 1: Appropriations Affected Under HB 98-1137


Program

FY 1997-98

Appropriation

Colorado Works Program County Block Grant

     General Fund

     Cash Funds Exempt — Local Funds

     Federal Funds

     TOTAL

          TANF Included in Federal Funds


  19,781,753

29,467,853

121,498,234

$ 170,747,840

121,498,234

Child Welfare Services Block Grant

     General Fund

     Cash Funds Exempt — Local Funds + Medicaid

     Federal Funds

     TOTAL

          Title XX Included in Federal Funds


 79,863,509

81,989,769

53,667,155

$ 215,520,433

27,185,783

Child Care Services Block Grant

     General Fund

     Cash Funds Exempt — Local Funds

     Federal Funds

     TOTAL

          Title XX Included in Federal Funds


 15,788,232

8,554,796

39,423,291

$ 63,766,319

6,827,887

Other

     General Fund

     Cash Funds Exempt — Local Funds + Medicaid

     Federal Funds

     TOTAL

          Title XX Included in Federal Funds


9,113,358

11,147,043

9,454,065

$ 29,714,646

1,969,370



Spending Authority


            No additional spending authority is required under HB 98-1137 for FY 1998-99.



Departments Contacted                               Human Services





FACTS AND ASSUMPTIONS



Facts

 

1.         Title XX funds — are provided to states to allow them to furnish services directed at five goals. These goals include achieving or maintaining self-sufficiency; preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests; preserving, rehabilitating or reuniting families; preventing or reducing inappropriate institutional care by providing community-based care; and securing referral or admission for institutional care when other forms of care are not appropriate. In order to meet the above stated goals, states may use their Title XX funds to purchase a variety of services including: child care; protective services for children and adults; services for children and adults in foster care; services related to the management and maintenance of the home; day care services for adults; family planning; training and related services; transportation; employment; family planning; information, referral, and counseling services; preparation and delivery of meals; health support services; and appropriate combinations of services designed to meet the special needs of children, the aged, the mentally retarded, the blind, the emotionally disturbed, the physically handicapped, and alcoholics and drug addicts. Expenditures for services may include expenditures for administration, training, and conferences and workshops. Additionally, the federal government places limitations on the block grant and disallows the use of Title XX funds for a variety of items.



Assumptions

 

1.         The maximum amount available to transfer would be 10 percent of the federal share of the TANF appropriation — $12,149,823.

 

2.         The Long Bill will: (a) explicitly allow the flexibility granted in this bill or; (b) the bill’s transfer authority will override the “M” headnote, transfer and other provisions of the Long Bill.