TO:	Honorable Jim Murphy, Chair, House Committee on Higher Education
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB4387 by González, Mary (Relating to the establishment of the Texas Transfer Grant pilot program.), As Introduced

The bill would amend the Education Code relating to the establishment of the Texas Transfer Grant pilot program. The bill would require the Higher Education Coordinating Board to administer a pilot grant program for purposes of awarding money to enable eligible transfer students, as defined by the bill, to attend institutions of higher education. The total amount of grants awarded under the program could not exceed the amount available for the program from appropriations, gifts, grants, or other funds. The bill establishes eligibility criteria for the grant, which includes not being a recipient of a TEXAS Grant. 

The Higher Education Coordinating Board is unable to estimate the number of students that would participate in the program. The agency indicates that it is unknown how many students would receive a TEXAS Grant and therefore be ineligible under the pilot program. The agency reports that the bill limits spending to the amount available from appropriations, gifts, grants, and other funds, which is currently unknown, and it is unclear how priority should be assigned in situations when an institution does not receive an allocation large enough to fund all eligible students. The agency reports that as a pilot program, it is unclear what proportion of the eligible population is intended to be supported through this program. Based on these factors, the Higher Education Coordinating Board indicates that the fiscal implication of this bill cannot be determined.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.