COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 4058-03
BILL NO.: SB 993
SUBJECT: Creates the Child Support Assurance Program
TYPE: Original
DATE: February 28, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| General Revenue | $0 to ($39,429,486) | $0 to ($38,680,089) | $0 to ($38,819,051) |
| Total Estimated
Net Effect on All State Funds |
$0 to ($39,429,486) | $0 to ($38,680,089) | $0 to ($38,819,051) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ASSUMPTION
Officials from the Department of Social Services - Division of Family Services (DFS) stated the Child Support Assurance program will have no fiscal impact as it is subject to appropriations. However, the DFS made the following projections for illustrative purposes only:
Program Costs
The DFS assumes all single parent households with earnings from employment below the poverty level will volunteer to participate in the Child Support Assurance Program (CSAP). They assume 1,368,334 total families with a child under 18 years of age are in Missouri. The DFS assumes 51.7% of the families have a female head of household and 17.7% of the households below the poverty level have income from earnings.
Assuming that 72% of single parent families have a legal child support order, the DFS provided the following calculations:
1,368,334 Total Families in Missouri
x .123 % of Families Below the Poverty Level
168,305
x .517 % of Female Head of Households
87,014
x .177 % with Income from Earnings
15,402
x .72 % with a Legal Order to Pay Child Support
11,089 Potential Eligible Families
The DFS made the additional following assumptions:
ASSUMPTION (continued)
Given the above assumptions, the DFS provided the following calculations to estimate the total annual Child Support Assurance cost:
11,089 Potential Eligibles
x $ 250 Monthly Child Support Assurance Payment
$ 2,772,250 Monthly Cost
x 12 Months per Year
$33,267,000 Annual Child Support Assurance Cost
Program Implementation Methodology
The DFS provided the following assumptions to arrive at how the program would be implemented:
Additional Personnel Necessary
Based on the above information, the DFS is estimating the following caseload:
11,089 Potential eligibles
- 4,016 Current TANF population with earnings
7,073 New eligibles requiring case management services
ASSUMPTION (continued)
The DFS assumes a self-sufficiency case manager caseload at 72 cases. Given this, an additional 98 self-sufficiency Case Managers ($26,700), 11 Income Maintenance Supervisors ($32,256), and 27 Clerk Typist II's ($19,452) would be needed to meet the needs of the new eligibles.
Estimated salaries would total $3,496,620, fringe benefits would total $1,075,211, and annual equipment and expense costs would total $2,823,152.
Oversight, in order to provide an estimate of the cost for this proposal, will range the costs from $0 (assuming the program is not given any appropriation authority) to $39,429,486 in FY 2001 (assuming the program is funded and the DFS implements the program as described above). Fiscal estimates were increased 2.5% for personal service and 3% for expense and equipment items. Expense and equipment costs for FY 2001 and FY 2002 were reduced by 70% of the cost reported by DFS, as traditionally, 70% of the expense and equipment costs are one-time costs.
Officials from the Department of Social Services - Division of Child Support Enforcement assume this proposal will not fiscally affect their agency as the DFS will implement the program.
Officials from the Office of Secretary of State (SOS) stated that based on experience with other divisions, the rules, regulations and forms issued by the Department of Social Services could require as many as approximately 14 pages in the Code of State Regulations at a cost of $26.50 per page. Approximately 7 pages would be printed in the Missouri Register at a cost of $22.50 per page.
Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years.
| FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| GENERAL REVENUE FUND | |||
| Costs - Division of Family Services | $0 to | $0 to | $0 to |
| Personal Service (136 FTE) | ($2,913,850) | ($3,584,036) | ($3,673,637) |
| Fringe Benefits | ($896,009) | ($1,102,091) | ($1,129,643) |
| Expense and Equipment | ($2,352,627) | ($726,962) | ($748,771) |
| Program Payments | ($33,267,000) | ($33,267,000) | ($33,267,000) |
| Total Costs - Division of Family Services | ($39,429,486) | ($38,680,089) | ($38,819,051) |
| ESTIMATED EFFECT ON | $0 to | $0 to | $0 to |
| GENERAL REVENUE FUND | ($39,429,486) | ($38,680,089) | ($38,819,051) |
| FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal creates the Child Support Assurance Program in the Department of Social Services. The Department is to create the level of benefits available for the eligible children, subject to appropriation.
This legislation is not federally mandated, would not duplicate any other program and may require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Social Services
Office of Secretary of State
Jeanne Jarrett, CPA
Director
February 28, 2000