As Amended: This bill, as amended by AM 1153, also increases the income eligibility requirements from 120% of federal poverty guidelines to 125% in FY 2014 and to 130% in FY 2015 for families qualifying for the Child Care Subsidy Program. An increase in eligibility to 125% of federal poverty guidelines increases the number on the subsidy by an estimated 173 children in FY 2014. The increase to 130% adds an additional 173 children in FY 2015.

Introducing Senator(s): Campbell; Bolz (priority); Conrad; Mello; Nordquist; Cook

Committee:  Health and Human Services

Committee Hearing Date:  February 20, 2013

Current Status: Approved by Governor on June 4, 2013

Estimated Fiscal Impact: The combined fiscal impact of LB507 as amended is $1,230,616 ($1,221,004 General Fund $9,612 Federal Funds) for FY 2013-2014 and $3,140,043 ($3,20,820 General Fund $19,223 Federal Funds) for FY 2014-2015

Voices for Children’s Position: Support (see our written testimony)

Research: Fact sheet; Support Affordable Child Care; Amended Bill; A Game Changer for Kids; Costs of Child Care

Introducing Senator(s): Conrad (priority); Nordquist

Committee: Health and Human Services

Committee Hearing Date: February 27, 2013

Current Status: **Amended version included in LB 507 on April 30, 2013 (AM 1173)

Estimated Fiscal Impact: Using the current monthly average of $412.85 per participant the estimated monthly increase in Child Care Subsidy expenditures would be $928,500 (General Fund) ($412.85 * 2,249) or a fiscal impact to the Department of Health and Human Services of $11,142,000 (General Fund) annually.

Voices for Children’s Position: Support (see our testimony)

Research: Family Bottom Line Data

Introducing Senator(s): Bolz

Committee: Health and Human Services

Committee Hearing Date: March 14, 2013

Current Status: Not voted out of committee

Estimated Fiscal Impact: The easing of the application and renewal process and extending eligibility time periods to the longest periods allowed by federal law would increase aid costs. The extent to which costs will increase cannot be determined. The programs covered by the provision of this bill have different fund sources or fund mixes, so the impacts would vary by how the programs are funded. The Children’s Health Insurance Program and Medicaid are state/federal matching programs. The Supplemental Nutrition Program is federally funded. The Aid to Dependent Children’s Program is funded under the Temporary Assistance for Needy Families Block Grant. Increased costs could be picked up from the carryover balance. The Child Care Subsidy Program is funded by federal block grants and state general funds.  All funding from these block grants are being utilized. Any increases for child care would be from the general fund.  Simplification of the application and renewal process may result in saving of staff time and could result in the reduction of FTE.

Reminder calls to those who have not submitted information needed for renewal is estimated to cost $43,873 and reminder letters would be $5,765. Half the costs would be paid from general funds and half from federal.

The data collection and reporting requirements are estimated to cost $11,530 split evenly between general and federal funds.

The Department of Health and Human Service has identified potential conflicts with the Affordable Care Act which will be implemented beginning on January 1, 2014.

Voices for Children’s Position: Support (Signed letter with Coalition)

Introducing Senator(s): Howard; Conrad

Committee: Health and Human Services

Committee Hearing Date: March 15, 2013

Current Status: Not voted out of committee

Estimated Fiscal Impact: LB236 would require the Department of Labor (DOL) to establish a pilot project to create individual development accounts to assist working families. The pilot project would not last more than 5 years.  Most of the funding for the project come from the TANF cash fund.  $72,071 General Fund, $300,000 Cash Fund in FY 2013-14 and $83,130 General Fund, $300,000 Cash Fund in FY 2014-15.

Voices for Children’s Position: Support (see our testimony)

Research:  IDA Issue Brief

Introducing Senator(s): Howard; Conrad

Committee: Health and Human Services

Committee Hearing Date: March 14, 2013

Current Status: Not voted out of committee

Estimated Fiscal Impact: Based on the U. S. Census, the potential pool of additional individuals and family would increase by 34,500 households. It is estimated that approximately 5% to 10% would meet the net income limit after applying deductions for allowable expenses. Approximately 1,725 to 3,450 additional households would be eligible. The aid costs are paid for from federal funds.

The workload increase would require between four and eight social service workers. At the higher end of the estimated caseload increase, a supervisor would also be needed. The application for SNAP has recently been streamlined by increasing the asset limit to $25,000 which requires less worker time to check for resources, since very few families would have assets close to that amount. The costs would range from $192,552 ($96,276 GF and FF) to $445,308 ($222,654 GF and FF) annually.

Voices for Children’s Position: Support (see our testimony)

Introducing Senator(s): Crawford

Committee: Health and Human Services

Committee Hearing Date: March 5, 2013

Current Status: Not voted out of committee

Estimated Fiscal Impact: In the last six months, an average of 17 families were closed or denied coverage in the ADC Program due to excess assets. Over the course of a year, 204 families would have received assistance or continued on the program. With an average payment of $322 a month, the additional aid costs would be $65,688 a month or $788,256 ($157,651 GF and $630,605 FF) in FY 2014-15. Assuming there is a gradual increase in families qualifying under this bill and an implementation date of September 2013, the costs in FY 2013-14 would be $394,128 ($78,825 GF and $315,303 FF). The Department of Health and Human Services fiscal note assumes there may be an equal number of families who have not applied but would if the asset limits were higher. This would increase the annual cost of the aid to $1,578,077 ($315,615 GF and $1,262,462 FF) in FY 2014-15.

Recipients of ADC automatically qualify for Medicaid. The parents in families qualifying for ADC would be covered under the provisions of this bill until the requirements of the Affordable Care Act are implemented on January 1, 2014. Beginning on January 1, 2014, the resource limits in Medicaid are eliminated. The average monthly cost for ADC adults is $448. The cost for four months of coverage for the parents in qualifying families would be $185,284 ($83,377 GF and $101,907 FF). The HHS fiscal note assumes a higher number of eligible. The costs in their fiscal note are $731,396 ($402,268 GF and $329,128 FF).

In the last six months, the number of child care cases that were closed or denied due to resources was 16 a month or 192 a year. The average cost per case is $414. Costs would be $953,856 GF in FY 2014-15. Assuming a gradual phase-in of those qualifying and an implementation date of September 2013, the FY 2013-14 would be $476,928 GF. The HHS fiscal note assumes there would be an equal number of those who did not apply because of the asset limits. The projected costs by HHS are $1,907,942 GF annually.

Staff time would be saved by not having to check resources for most cases, but the number of cases would increase or open cases would remain qualified longer. Additional eligibility staff may be needed, if the reduction in time spent checking resources is less than the workload created by the larger number of clients.

Voices for Children’s Position: Support (see our testimony)

Research: Fact sheet

Introducing Senator(s): Campbell

Committee: Health and Human Services

Committee Hearing Date: February 21, 2013

Current Status: Not voted out of committee

Estimated Fiscal Impact: This bill increases the payment to ADC families, but does not change the qualifications of the program. In December 2012, there were 7,385 families receiving assistance. The increase to 60% of the standard of need would increase the average payment by $108 a month. The annual increase in costs would be $9,613,498 ($2,980,184 GF and $6,633,314 FF) in FY 14 and FY 15. In the following years the costs would increase because of the higher percentage of the standard of need that would apply and because the standard of need is adjusted every other year.

Voices for Children’s Position: Support (see our testimony)

Rollover contributions from another state’s plan into a Nebraska College Savings Program account would be entitled to the Nebraska state income tax deduction. This change brings the statute into agreement with interpretations of the Nebraska Department of Revenue.

LB296 further provides how ownership of the account shall be handled upon the death of the account owner.

Introducing Senator(s): Hadley

Committee: Revenue

Committee Hearing Date: February 1, 2013

Current Status: Approved by Governor on June 3, 2013

Estimated Fiscal Impact: The estimated reduction to the General Fund would be as follows:

FY 2013-2014 $ 0;

FY 2014-2015 $ 1,297,000;

FY 2015-2016 $ 1,371,000;

FY 2016-2017 $ 1,449,000

LB 296 applies to all taxable years beginning or deemed to begin on or after January 1, 2014.

Voices for Children’s Position: Support

Research: See our blog on Educational savings plans

Introducing Senator(s): Cook

Committee: Health and Human Services

Committee Hearing Date: February 13, 2013

Current Status: General File on February 22, 2013

Estimated Fiscal Impact: The cost projections are based on the assumption 20% of the children who lose child care eligibility due to income would continue because of the income disregards required under this bill. An additional assumption is made that 20% who lose eligibility due to income have received the subsidy for 12 months. The costs are projected at the average monthly rate of child care payments. First year costs are phased-in as the eligibility redeterminations are made. Estimated costs are $418,626 General Fund in FY 2013-14 and $772,848 General Fund in FY 2014-15.  One-time programming costs are $9,000 General Fund.

Voices for Children’s Position: Support (see our testimony)

Last week, the Nebraska State Legislature adjourned for the year.  Before adjournment, lawmakers introduced interim studies on issues that they plan to take a closer look at between now and next year.   One such study, LR 206, will look at the school breakfast program in Nebraska and potential ways to increase participation.

Research has found that breakfast has a relationship to learning  and quite simply, kids learn better when they are not hungry.  In an ideal world, every child would have a quality breakfast provided by their parents before they leave home, but in reality that doesn’t always happen.  For many families, financial challenges and time pressures impact their ability to help kids start their day out right.

This is why many states have started taking a look at utilizing the federal school breakfast program and other resources to ensure that every child eats breakfast.  Several states passed legislation this year to help get more kids access to a healthy morning meal.

Colorado passed legislation to require breakfast “after the bell”, or after the regular start of the school day, for schools that have more than 80 percent of students eligible for free or reduced meal programs.  Breakfast can be served in the classroom or during a brief morning recess.

West Virginia passed ambitious legislation known as the “Feed to Achieve” Act that aims to provide a free nutritious breakfast to all students in K-12.

States around the country are starting to recognize the potential of breakfast, and an interim study here in Nebraska is a good first step in looking at what we can do help make sure more kids are eating the most important meal of the day.