Honorable Will Metcalf, Chair, House Committee on Culture, Recreation & Tourism
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB738 by Gervin-Hawkins (Relating to creation by the Texas Historical Commission of a program to identify and restore Rosenwald Schools structures.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB738, As Introduced: a negative impact of ($848,634) through the biennium ending August 31, 2027.
There would be additional capital expenses for restoring Rosenwald School structures, the costs for which cannot be estimated at this time.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($348,567)
2027
($500,067)
2028
($500,067)
2029
($330,067)
2030
($340,067)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($348,567)
2.0
2027
($500,067)
2.0
2028
($500,067)
2.0
2029
($330,067)
2.0
2030
($340,067)
2.0
Fiscal Analysis
The bill would require the Texas Historical Commission (THC) to establish a program for the identification, preservation and maintenance of Rosenwald Schools in the state. The THC would be able to purchase property containing Rosenwald School buildings as a part of the program. The program would initially be implemented in the south central region of the state.
Methodology
THC estimates 2.0 new FTEs (Program Specialist V) would be required to administer the new program. The cost for the new FTEs, including salaries and wages, benefits and other personnel costs is estimated to be $211,031 per fiscal year. Additional ongoing costs operating expenses are estimated to be $39,892 per fiscal year.
THC indicates there would be a need for professional services for initial surveying and preservation planning across the Rosenwald School locations that have been identified. This cost is estimated to be $87,644 in fiscal year 2026, $249,144 in fiscal years 2027 and 2028, and $79,144 in subsequent fiscal years.
There would be additional capital expenses for restoring the school structures, the costs for which cannot be estimated at this time without detailed survey and condition assessments.
This analysis includes estimated costs for implementation of the program only in the south central region of the state. THC estimates there are 34 Rosenwald School structures in this region, although not all are expected to be extant. The agency indicates additional costs and FTEs may be required for the program to be implemented in other regions of the state.
Technology
THC indicates there would be a onetime technology cost of $10,000 in fiscal year 2026 for laptops and software licensing, and an additional $10,000 in fiscal year 2030 for the agency's technology refresh cycle.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.