Fiscal Note - SB 0330 - Creates MO Work and Self-Reliance Plan To Add Community Assistance In Process of Moving From Welfare to Work
L.R. NO. 0485-02
BILL NO. SB 330
SUBJECT: Missouri Work and Self-Reliance Plan
TYPE: Original
DATE: February 17, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($4,596,897 to ($5,049,917 to ($5,180,914 to
Unknown) Unknown) Unknown)
Child Support
Enforcement ($2,241,354) ($2,698,759) ($2,974,304)
Emergency
Intervention $0 $0 $0
Community
Revitalization and
Job Creation $0 $0 $0
Family Investment
Trust $0 $0 $0
Missouri Job
Development ($2,000,000) ($2,000,000) ($2,000,000)
Missouri
Maintenance of
Effort for TANF $0 $0 $0
Total Estimated
Net Effect on All ($8,838,251 to ($9,748,676 to ($10,155,218 to
State Funds Unknown) Unknown) Unknown)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Federal ($2,740,552 to ($3,020,362 to ($3,328,742 to
Unknown) Unknown) Unknown)
Total Estimated
Net Effect on All ($2,740,552 to ($3,020,362 to ($3,328,742 to
Federal Funds Unknown) Unknown) Unknown)
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Transportation, the Office of Administration,
the State Treasurer's Office, the Coordinating Board for Higher Education
(CBH), and the Department of Health assume this proposal would not fiscally
impact their agencies.
Officials of the Department of Corrections (DOC) state that they would be
represented on the Missouri Work and Self-Reliance Commission and assume
actual expenses of the commission member would be reimbursed by the
Department of Social Services. Based on this assumption, this proposal would
have minimal fiscal impact on DOC.
The Department of Elementary and Secondary Education assume costs due to
commission membership could be absorbed by existing funds.
The Department of Economic Development (DED), Community and Economic
Development states that this proposal transfers all unencumbered balances of
the Main Street Program Fund as of June 30, 1997 to the Community
Revitalization and Job Creation Fund (CRJCF). DED assumes since there is
generally no unencumbered balance in the Main Street Program Fund, that no
monies would be transferred from it to the CRJCF.
The Division of Job Development and Training (DJDT) states that this proposal
transfers the unencumbered balances of the Job Development and Training Fund
as of June 30, 1997 to the CRJCF. DED estimates that $2,000,000 would be
transferred annually from the Missouri Job Development Fund to the CRJCF.
The Office of the State Court's Administrator (CTS) indicates this proposal
requires the Department of Social Services to operate a centralized,
automated unit for collection and disbursement of certain child support
payments. Because this legislation does not contain specific information
regarding this centralized unit, CTS cannot estimate the possible workload
shifts that would occur between the courts and DSS; therefore, CTS cannot
estimate the fiscal impact of this proposal. Oversight assumes there would
be cost savings to the courts as child support collections/disbursements is
shifted from the courts to DSS. However, these savings cannot be estimated.
Officials of the Department of Labor, Division of Employment Security (DES)
indicated this proposal provides for self-reliance centers in each county and
the City of St. Louis. DES estimates this would require an additional 93.5
FTE to cover counties not already serviced. The potential negative fiscal
impact from General Revenue funds would be an estimated $3,740,441,
$4,137,406, and $4,208,425 in FY98, FY99, and FY00, respectively. The actual
costs could be more or less depending on future definition and clarification
of DES's responsibilities. In addition, DES states that Section 205.1039.2
describes some of the responsibilities assigned to DOS. These exceed DES's
current functions and go beyond mandated federal requirements for federal
funding. The potential fiscal impact to fulfill these responsibilities would
be significant, but is currently unknown.
DES also assumes the "reallocation of portions of existing resources from
participating agencies" mentioned in the proposal does not pertain to
Wagner-Peyser funding, as federal law requires Wagner-Peyser monies to
provide services to the general population and not to a select group.
The Department of Mental Health (DMH) assumes this proposal will eliminate
general relief. There are currently 58 consumers in community placement who
are receiving general relief. If these consumers lose these benefits, DMH
estimates it will cost them $80 per month to maintain them in community
placement. Due to the emergency clause, DMH assumes this bill will go into
effect April 1, 1997. The negative fiscal impact to DMH would be $55,680 for
FY98, FY99, and FY00.
DMH also states that in FY96, 1,470 general relief consumers received a
behavioral health service paid by Medicaid, with a match paid by the
Department of Social Services. The total costs of these services was
$699,429. As a result of this proposal, DMH would have to decide if it would
continue to provide these services after the consumers lose general relief
benefits. Applying an inflation factor of 7%, costs would be $748,389 in
FY98, $800,776 in FY99, and $856,831 in FY00.
The Department of Social Services (DSS), Division of Child Support
Enforcement (DCSE) states that this proposal would establish a centralized
collection/disbursement unit for all Missouri IV-D child support payments and
non IV-D child support payments received from employer wage withholdings.
Other duties of this centralized collection/disbursement unit would include
generating orders and notices of withholdings to employers, maintaining
accurate identification of payments, promptly disbursing payments, and
furnishing parents with payment records.
DCSE assumes services provided by the centralized collection/disbursement
unit would be contracted out, and that the number of transactions, both IV-D
and non IV-D, would increase proportionately with collections. These
collections are projected to increase 7% from the previous fiscal year. DCSE
further assumes that 80% of FY98 non IV-D payments will be employer wage
withholdings and will be processed by the centralized unit, and that 100% of
these costs will be incurred by the state.
Based on these assumptions, DCSE estimates total IV-D and non IV-D
transactions would be 2,558,824 in FY98, 2,737,942 in FY99, and 2,929,598 in
FY00. The total cost per transaction is estimated at $2.03, $2.09, and $2.15
in FY98, FY99, and FY00, respectively. Total costs associated with these
transactions would be approximately $4,981,906 in FY98, $5,719,121 in FY99,
and $6,303,046 in FY00. These costs would be split between federal funds and
the child support enforcement fund, as the state would incur 100% of the
costs for non IV-D transactions, and 34% of the costs for IV-D transactions.
DSS also notes that, except for DCSE, they cannot estimate the costs as a
result of this proposal due to the fact that some of it's passages are
unclear and there are numerous unknown factors. Unknown factors include the
number of Community Partnership Councils that would be formed, the number of
members per council, and the number of times the councils would meet. DSS
states if the intent of this proposal is to merely transfer existing
programs, appropriations, and staff to the authority of the Missouri Work and
Self-Reliance Commission and this process is allowed to happen gradually, it
is possible that there would be no new costs. However, if this is not the
case, there are numerous areas that could require significant costs.
Oversight assumes the fiscal impact on DSS because of this proposal is
unknown, but could be significant.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
GENERAL REVENUE
Costs - Department of Labor
Division of Employment Security (DES)
Personal Service (93.5 FTE) ($2,266,525) ($2,774,226) ($2,829,710)
Fringe Benefits ($634,627) ($776,783) ($792,318)
Expense and Equipment ($839,289) ($586,397) ($586,397)
Total Costs-DES ($3,740,441 ($4,137,406 ($4,208,425
to to to
Unknown) Unknown) Unknown)
Costs-Department of Mental Health (DMH)
Costs to continue consumers in
community placement ($55,680) ($55,680) ($55,680)
Costs for consumers to continue
receiving behavioral health service ($800,776) ($856,831) ($916,809)
Total Costs-DMH ($856,456) ($912,511) ($972,489)
Costs-Department of Social Services (DSS)
Personnel/Expense & Equipment (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON ($4,596,897 ($5,049,917 ($5,180,914
GENERAL REVENUE to to to
Unknown) Unknown) Unknown)
FEDERAL FUNDS
Costs-Department of Social Services (DSS)
Personnel/Expense & Equipment (Unknown) (Unknown) (Unknown)
Division of Child Support Enforcement (DCSE)
Transaction processing costs ($2,740,552) ($3,020,362) ($3,328,742)
ESTIMATED NET EFFECT ON ($2,740,552 ($3,020,362 ($3,328,742
FEDERAL FUNDS to to to
Unknown) Unknown) Unknown)
CHILD SUPPORT
ENFORCEMENT FUND
Costs-Department of Social Services (DSS)
Division of Child Support Enforcement (DCSE)
Transaction processing costs ($2,241,354) ($2,698,759) ($2,974,304)
ESTIMATED NET EFFECT
ON CHILD SUPPORT
ENFORCEMENT FUND ($2,241,354) ($2,698,759) ($2,974,304)
EMERGENCY INTERVENTION FUND
Income
Sources as provided by law Unknown Unknown Unknown
Costs
Emergency intervention services (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON
EMERGENCY INTERVENTION FUND $0 $0 $0
COMMUNITY REVITALIZATION
AND JOB CREATION FUND
Income
Transfer of monies from the Missouri
Job Development Fund $2,000,000 $2,000,000 $2,000,000
Other sources as provided by law Unknown Unknown Unknown
Total Income $2,000,000 $2,000,000 $2,000,000
to to to
Unknown Unknown Unknown
Costs
Economic development ($2,000,000 ($2,000,000 ($2,000,000
to to to
Unknown) Unknown) Unknown)
ESTIMATED NET EFFECT ON
COMMUNITY REVITALIZATION
AND JOB CREATION FUND $0 $0 $0
MISSOURI JOB DEVELOPMENT FUND
Costs
Monies transferred to the Community
Revitalization & Job Creation Fund ($2,000,000) ($2,000,000) ($2,000,000)
ESTIMATED NET EFFECT
ON MISSOURI JOB
DEVELOPMENT FUND ($2,000,000) ($2,000,000) ($2,000,000)
FAMILY INVESTMENT TRUST FUND
Income
Sources as provide by law Unknown Unknown Unknown
Costs
Costs to integrate approaches now
provided by several agencies (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON
FAMILY INVESTMENT TRUST FUND $0 $0 $0
MISSOURI MAINTENANCE OF EFFORT
FOR TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES FUND
Income
Sources as provided by law Unknown Unknown Unknown
Costs
Maintenance of effort requirements (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON MISSOURI
MAINTENANCE OF EFFORT FOR
TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
$0 $0 $0
FISCAL IMPACT - Small Business
Small businesses participating in this plan could experience a positive
impact from the wage supplementation program, trained staff, etc. In
addition, small businesses may experience additional paperwork and staff time
to participate.
DESCRIPTION
This proposal creates the Missouri Work and Self-Reliance Commission to
develop and implement a comprehensive state policy to guide the use of
employment, public assistance, training, education and economic development
funds and other resources toward defined state economic and employment goals.
The Commission would consist of members of the Department of Social Services,
the Departments of Corrections, the Department of Economic Development, the
Department of Elementary and Secondary Education, the Department of Health,
the Department of Labor, the Department of Mental Health, and the Department
of Transportation. Also serving on the Commission would be a
non-governmental member of the Missouri Family Investment Trust, the Missouri
Training and Employment Council and the Missouri Welfare Reform Coordinating
Committee.
The Commission would administer the Emergency Intervention Fund, the
Community Revitalization and Job Creation Fund, and the Family Investment
Trust Fund. The Emergency Intervention Fund would include all unencumbered
balances from the general relief fund, monies appropriated by the general
assembly, and any private donations, grants or in-kind services. The purpose
of the fund would be to eliminate barriers to accepting employment and to
assist individuals in remaining in the work place. Fund monies would be
first spent on providing emergency intervention services, such as child care,
transportation, and work-related expense payments. Any remaining funds would
be spent on temporary intervention payments to families and individuals, and
temporary assistance to needy and medically unemployable adults who cannot
qualify for other assistance programs.
The Community Revitalization and Job Creation Fund would consist of all
unencumbered balances from the Main Street Fund as of June 30, 1997, and the
Job Development and Training Program, as well as money appropriated by the
general assembly and any private donations, grants, or in-kind services. The
purpose of this fund would be to ensure community wealth creation, encourage
local volunteer projects, revitalize small communities' central business
districts, improve substandard infrastructures of disadvantaged communities,
encourage local private investment in community development projects, and
increase the workforce skills of Missouri workers to prepare them to fill
future job projections.
The Family Investment Trust Fund would include all unencumbered balances from
the Family Investment Trust, monies appropriated by the general assembly, and
any private donations, grants, or in-kind services. The purpose of this fund
would be to form integrated approaches to providing the services now being
provided separately by the Departments of Economic Development, Elementary
and Secondary Education, Health, Higher Education, Labor, Mental Health,
Social Services, and Transportation.
This proposal states that Missouri will meet the 100% maintenance of effort
requirement set forth in the Personal Responsibility and Work Opportunity
Reconciliation Act. The maintenance of effort for Temporary Assistance for
Needy Families (TANF) will be funded with state funds and any private
donations, grants, or in-kind services. The fund would be used to provide
cash assistance, child care, specific educational activities, and assistance
to those persons who satisfy all the eligibility requirements of the TANF
program but lack the capacity to participate in or perform the work
requirements.
This proposal also creates the Community Partnership Councils which will
plan, implement, monitor, and evaluate a community work and self-reliance
plan. The Community Partnership Council would be comprised of
representatives from families living in the community, members of local
organizations, religious and secular, providing support and services to the
community, the business community, the labor community, local government and
school officials responsible for public programs, services and funds, and
members of the governing board of each local jurisdiction included in the
Community Partnership Council.
This proposal would establish a Community Work and Self-reliance Center in
each county and the City of St. Louis. The duties and services of the
Department of Social Services, Divisions of Child Support Enforcement, Family
Services and Medical Services, and the Department of Labor would be located
in one central office. In order to stress the program's work focus, an
applicant must complete a self-sufficiency assessment and planning interview
with a human resource advocate before proceeding to an eligibility interview
for public assistance.
The Division of Child Support Enforcement will continue to provide services,
including paternity establishment and the establishment, modification and
enforcement of support obligations for children receiving benefits from TANF
or for those receiving foster care maintenance payments or Medicaid. The
Department of Social Services would establish an automated state case
registry that contains a record of each case in which services are being
provided by the Division of Child Support Enforcement and each support order
established or modified in the state on or after October 1, 1998.
This proposal contains an emergency clause.
Parts of this legislation are federally mandated and would change existing
programs. The proposal may require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Social Services
Department of Elementary and Secondary Education
Coordinating Board for Higher Education
Department of Labor
Department of Corrections
Department of Health
Department of Mental Health
Department of Transportation
State Treasurer's Office
Office of State Courts Administrator
Office of Administration
Department of Economic Development
NOT RESPONDING: University of Missouri
This Fiscal Note is not an official copy and should not be quoted or cited.