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F I S C A L I M P A C T R E P O R T

SPONSOR King

DATE TYPED 02/21/05 HB 764

SHORT TITLE TANF Adult Basic Education Services

SB

ANALYST Williams

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$250.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 833 and Senate Bill 804

Relates to Appropriation in the General Appropriation Act for the Commission on Higher Educa-

tion, Policy Development and Institutional Financial Oversight Program

SOURCES OF INFORMATION

LFC Files

Human Services Department

No response received from Commission on Higher Education

SUMMARY

Synopsis of Bill

House Bill 764 appropriates $250 thousand from the general fund to the Commission on Higher

Education for the purpose of providing adult basic education services to students who qualify for

temporary assistance for needy families.

Significant Issues

The Human Services Department (HSD) notes the $250 thousand of general fund appropriation

included in this bill could be counted as Maintenance of Effort (MOE) monies for the TANF pro-

gram. State General Fund expenditures for this purpose and for families either receiving TANF

cash assistance and/or TANF eligible families at 100 percent of the federal poverty level could

be certified toward the State’s TANF MOE budget.

House Bill 764 -- Page 2

FISCAL IMPLICATIONS

The appropriation of $250 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 would revert to

the general fund.

Note the Legislative Finance Committee (LFC) budget recommendation reduces temporary as-

sistance for needy families (TANF) funding for the adult basic education program in FY06 to

$250 thousand, down from $1 million in FY05. The reduction is partially addressed through an

increase in recurring general fund appropriation of over $400 thousand in FY06 in the LFC rec-

ommendation. In contrast, the Executive budget recommendation for FY06 entirely eliminates

TANF funding for the adult basic education program and does not increase the general fund ap-

propriation for the program.

ADMINISTRATIVE IMPLICATIONS

HSD staff would need to prepare a joint powers agreement (JPA) or extend the existing joint

powers agreement, with CHE for the certification of MOE for TANF recipients or TANF-

eligible families.

TECHNICAL ISSUES

HSD notes the bill states the funds will be spent on “services to students who qualify for the

Temporary Assistance for Needy Families (TANF) Program.” It is not clear from this language

whether the students will have to receive TANF or be eligible for TANF at 100 percent of the

federal poverty level. As such, this issue would be clarified in the JPA between HSD and CHE.

POSSIBLE QUESTIONS

1.

How many individuals does the adult basic education program currently serve.

2.

How extensive is the need for this program.

3.

Does the program have performance measures. What do those performance measures re-

flect as program outcomes.

4.

What is the status of the transition of the program from administration by the Public Edu-

cation Department to the Commission on Higher Education.

AW/lg