Colorado Legislative Council Staff

STATE

REVISED CONDITIONAL FISCAL NOTE

(replaces Fiscal Note dated March 9, 1998)

General Fund Expenditure Impact

Cash Funds Exempt Expenditure Impact

Federal Funds Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-828

Rep. Hefley

Sen. Coffman

Date:

Bill Status:

Fiscal Analyst:

March 30, 1998

House Appropriations

Janis Baron (866-3523)

 

TITLE:            CONCERNING TESTING FOR CONTROLLED SUBSTANCES OF PARTICIPANTS IN THE COLORADO WORKS PROGRAM.

 

 

Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund



 



 

State Expenditures *

Colorado Works Program — County Block Grants

Short-term Works Emergency Fund — Federal Funds

    (for drug testing and assessments)


$ 61,200


19,080


$ 61,200


19,080

FTE Position Change

None

None

Local Government Impact — The fiscal note assumes that any drug treatment provided by counties will be done so with the state and county portions of the County Block Grants under the Colorado Works Program.

 

*    State Expenditures for testing controlled substances in participants in the Colorado Works Program will not require additional resources. To the extent that counties choose to implement a Works Drug Abuse Control Program, it is assumed funding will come out of existing appropriations under the Colorado Works Program. Costs are shown in the fiscal note to identify expenditures for such a program, should counties elect to do so. Additionally, these costs are identified because they presently are not being incurred under the Colorado Works Program.


            As amended, the bill authorizes a county to administer a Works Drug Abuse Control Program. If a county does not sanction a participant in the Colorado Works Program for nonparticipation in a work activity based upon a good cause determination (and such determination is based upon use of a controlled substance), the county department of social services is authorized to require the participant to take action toward rehabilitation. The rehabilitation plan may include random drug testing, drug treatment, or other rehabilitation activities. The participant may be subject to sanctions if he or she fails to meet the requirements of the rehabilitation plan; except if the services required under the plan are not available, if child care or transportation are not available, or if all of the above are prohibitively expensive. The bill stipulates that the participant is not entitled to rehabilitation services or payment for services. Additionally, the Department of Human Services is authorized to allocate funds from the Short-term Works Emergency Fund for counties to pay for the cost of random drug testing and assessments. The bill is effective upon signature of the Governor.



State Expenditures


            Department of Human Services (DHS) — Although the bill is assessed as having a conditional cost of $80,280, those costs could be higher or lower for two primary reasons: (1) the incidence of use of controlled substances by Colorado Works participants is unknown; and (2) the number of good cause determinations from participation in a work activity issued by the counties is unknown.


            Drug Treatment Rehabilitation — The fiscal note assumes that counties may use a portion of their Colorado Works Block Grant for drug treatment rehabilitation (state and county maintenance of effort funds). Because participants in Colorado Works are receiving public assistance, it is assumed that these individuals do not have the financial means to pay for drug treatment rehabilitation. Federal law requires that states cannot use the Temporary Aid to Needy Families (TANF) Block Grant to provide medical services, and at this point, drug treatment programs may or may not be determined to be medical services (proposed federal regulations on this issue are in post-comment review).


            Random Testing for Controlled Substances and Assessments — The bill authorizes DHS to allocate moneys to the counties for random testing for controlled substances and assessments from the Short-term Works Emergency Fund. HB 98-1401, the Long Appropriations Bill, includes a $3 million federal funds appropriation to the Short-term Works Emergency Fund.

 

            Other Possible Costs — Additional child care or child welfare expenditures could result if a parent is required to participate in an in-patient drug treatment program in order to maintain eligibility for assistance. Dependent children would require care from someone other than the parent, while the parent (or custodian) underwent treatment. These costs are not estimated.


            Fiscal Impact — For the purpose of illustration, using the assumptions identified in Table 1 (page 4 in the Facts and Assumptions section of this fiscal note), the bill would have an estimated cost of $80,280. Under the scenario provided in Table 1, $61,200 in treatment costs, $4,680 in drug testing costs, and $14,400 in assessment costs would be incurred under HB 98-1382. This is based on 6 individuals participating in a drug treatment program at a cost of $850 per individual per month, two random drug tests per individual per month at a cost of $32.50 per test, and $200 per individual per month for assessment and rehabilitation plan. The table is provided to show a method for calculating the number of participants that may be required to participate in a drug treatment program should counties elect to administer a Works Drug Abuse Control Program; the actual number may be higher or lower.



Local Government Impact


            The fiscal note assumes that any drug treatment provided by counties choosing to operate a Works Drug Abuse Control Program will be done so with the state and county portions of the County Block Grants under the Colorado Works Program. No additional county expenditures would be incurred.



Spending Authority


            The bill does not require any additional resources to implement HB 98-1382. Moneys for drug treatment will come from state and county maintenance of effort funds in the County Block Grants; moneys for drug testing and assessment will come from the Short-term Works Emergency Fund. No separate appropriation is needed.



Departments Contacted


            Human Services



FACTS AND ASSUMPTIONS



Table 1: Scenario for Illustrating Costs Under HB 98-1382


Assumptions

FY 1998-99

Colorado Works Program caseload (7/1/97 through 2/28/98)

23,941

% of participants subject to an Individual Responsibility Contract (IRC)

77%

# of participants subject to an IRC

18,435

% of participants subject to IRC who are subject to sanction for nonparticipation in a work activity

25%

# of participants subject to sanction for nonparticipation in a work activity

4,609

% of participants subject to sanction for nonparticipation in a work activity, but not sanctioned based on good cause

10%

# of participants not sanctioned based on good cause

461

% of participants with good cause based upon finding of use of controlled substance a/

1.2%

# of participants not sanctioned for good cause due to use of controlled substance

6


Drug Treatment

 

# of participants not sanctioned for good cause due to use of controlled substance

6

Average cost per individual per month for participation in a drug treatment program b/

$850

     Subtotal (Monthly Cost)

$5,100


Random Drug Testing —

 

# of participants not sanctioned for good cause due to use of controlled substance

6

Average cost per individual for testing for use of controlled substances c/

$32.50

Estimated number of tests required per participant per month

2

    Subtotal (Monthly Cost)

$390

Assessments —

 

# of participants not sanctioned for good cause due to use of controlled substance

6

Average cost per individual for assessment and rehabilitation plan d/

$200

    Subtotal (Monthly Cost)

$1,200


Total Cost Per Month


$6,690

Total Cost Per Year

$80,280


    a/A recent study conducted by the State Office of Health and Rehabilitation Services, Alcohol and Drug Abuse Division (ADAD), identifies 8 percent of Coloradans, ages 18 to 59, as having a current substance abuse/dependence problem. Of the total, 1.2 percent are due to illicit drugs and the remaining 6.8 percent are due to alcohol.

    b/Average cost provided by ADAD.

    c/Average cost provided by Department of Public Health and Environment, Laboratory Services.

    d/                                                                                                                                         Average cost provided by ADAD.