Colorado Legislative Council Staff
STATE
REVISED CONDITIONAL FISCAL IMPACT
(replaces fiscal impact dated January 27, 1999)
Drafting Number: Prime Sponsor(s): |
LLS 99-0290 Rep. Hefley Sen. Epps |
Date: Bill Status: Fiscal Analyst: |
March 4, 1999 House Appropriations Janis Baron (303-866-3523) |
TITLE: CONCERNING TESTING FOR CONTROLLED SUBSTANCES OF PARTICIPANTS IN THE COLORADO WORKS PROGRAM.
Fiscal Impact Summary |
FY 1999/2000 |
FY 2000/2001 |
State Revenues General Fund |
|
|
State Expenditures* General Fund Cash Fund Exempt |
Up to $962,275 — — |
Up to $827,763 — — |
FTE Position Change |
0.0 FTE |
0.0 FTE |
Other State Impact: None |
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Effective Date: Upon Signature of the Governor |
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Appropriation Summary for FY 1999-2000: None Required |
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Local Government Impact: The fiscal note assumes that implementation of a Works Drug Abuse Control Program by the counties 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. |
* State Expenditures for a Works Drug Abuse Control Program will not require additional resources. To the extent that counties choose to implement such a program, it is assumed funding will come out of existing appropriations under the Colorado Works Program. The total cost is included to identify expenditures for such a program, should all counties elect to do so. Additionally, these costs are identified because they presently are not being incurred under the Colorado Works Program. Although the funding splits for the FY 1998-99 County Block Grants are General Fund (9.5%), cash funds exempt county funds (20.1%), and federal funds (69.6%); implementation of a Works Drug Abuse Control Program must be expended with state and county maintenance of effort funds prior to any expenditure of federal funds for this purpose. Because of county discretion under the Colorado Works Program, the funding splits cannot be identified at this time.
Summary of Legislation
As amended by the House HEWI Committee, February 1, 1999, the bill authorizes a county to administer a Works Drug Abuse Control Program. For a county electing to implement such program, the individual responsibility contract (IRC) may require a client to participate in a drug abuse control program by requiring the client to take action toward rehabilitation, if the use of a controlled substance prevents the participant from successfully participating in his or her work activity. The rehabilitation plan may include random drug testing, drug treatment, or other rehabilitation activities. The client 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 unavailable or prohibitively expensive, or if transportation or child care is unavailable. The bill stipulates that the participant is not entitled to rehabilitation services or payment for services. As amended, the bill strikes language authorizing the Department of Human Services (DHS) to allocate funds from the Short-term Works Emergency Fund for counties to pay for the cost of random drug testing and assessments. Additionally, as amended, the bill includes any alcohol beverage in the definition of controlled substance.
State Expenditures
Department of Human Services (DHS) — The bill is assessed as having a conditional fiscal impact. The bill is permissive; counties are not required to implement a Works Drug Abuse Control Program, but may elect to implement such program. It is unknown how many counties will opt to implement a drug abuse control program. Additionally, the incidence of use of controlled substances and alcohol for the Colorado Works Program population can only be estimated. Included on page 4 of this fiscal note is a table illustrating possible costs if all counties were to implement a Works Drug Abuse Program. Costs are estimated at $962,275 in FY 1999-00 and $827,763 in FY 2000-01. To the extent that counties choose to implement a Works Drug Abuse Control Program, it is assumed funding will come out of existing appropriations for the Colorado Works Program. Costs are identified in this fiscal note because they presently are not being incurred under the Colorado Works Program.
Drug/Alcohol 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. At this point, drug testing is not determined to be a medical service. Drug treatment programs may or may not be determined to be medical services.
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 — As amended, the bill requires a client to take action toward rehabilitation, such as but not limited to, participation in a drug treatment or alcohol program as a condition of his or her individual responsibility contract (IRC) if the use of a controlled substance prevents the client from successfully participating in his or her work activity. The inclusion of IRC language raises the matter of sanctions. Under current law, Section 26-2-711, C.R.S., provides for the imposition of sanctions on clients who fail to comply with the terms and conditions of his or her IRC. A review of current DHS sanction reports by level and type, provides a means for estimating/identify the number of clients who may be sanctioned for failure to comply with an IRC due to the use of a controlled substance, including alcohol. Table 1 on page 4 provides a basis for determining costs under HB 99-1203 and assumes all counties will implement a Works Drug Abuse Control Program. The table is included as an illustration only, total costs are dependent on the number of counties choosing to implement a Works Drug Abuse Control Program.
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.
State Appropriation
The bill does not require any additional resources to implement HB 99-1203. Moneys for assessments, drug/alcohol testing, and drug/alcohol treatment will come from state and county maintenance of effort funds in the County Block Grants currently appropriated. No separate appropriation is needed.
Departments Contacted
Human Services
Table 1: Scenario for Illustrating Costs Under HB 99-1203
With All Counties Implementing a Drug Abuse Control Program
Assumptions |
FY 1999-00 |
FY 2000-01 |
Costs Average cost per individual for required assessment and rehabilitation plan |
$200.00 |
$200.00 |
Average cost per individual/per test for use of controlled substance including alcohol |
$37.50 |
$37.50 |
Average cost per individual per month in drug treatment program |
$850.00 |
$850.00 |
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|
|
Initial Sanctions Monthly average of individuals sanctioned at Level 1 for nonparticipation in a work activity |
287 |
287 |
% of individuals sanctioned monthly for failure to comply with IRC due to use of controlled substances including alcohol |
25% |
25% |
Subtotal - Initial Sanctions (annual) |
864 |
864 |
|
|
|
Subsequent Sanctions on Existing Caseload Monthly number of individuals sanctioned at Levels 2 and 3 for nonparticipation in a work activity |
654 |
— |
% of individuals sanctioned for failure to comply with IRC due to use of controlled substances including alcohol |
25% |
25% |
Subtotal - Subsequent Sanctions (1 month phase-in for existing caseload) |
164 |
— |
Total - Sanctions |
1,028 |
864 |
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|
|
Assessment and Rehabilitation Plan number of individuals sanctioned |
1,028 |
864 |
$200.00 for each assessment/rehabilitation plan |
$205,600 |
$172,800 |
Random Drug Testing number of tests required for controlled substances/alcohol |
1,274 |
1,123 |
$37.50 per test |
$47,775 |
$42,113 |
Drug Treatment Program number of cases in treatment for controlled substances/alcohol |
834 |
721 |
$850.00 per individual per month in drug treatment |
$708,900 |
$612,850 |
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|
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Total Cost Per Year |
$962,275 |
$827,763 |