LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 4, 1995



 TO:     Honorable David Sibley, Chair          IN RE: Committee Substitute
         Committee on Economic Development      for
         Senate                                                Senate Bill
         Austin, Texas                          No. 1528
                                                        By:  Ellis








FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1528 (relating to the establishment of the school-to-work
component of the state's workforce development system and to the
creation of the Texas Skill Standards Board) this office has
determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill establishes a school-to-work component of the state's
workforce development system.  The bill authorizes the use of
federal funds to underwrite the costs of planning and
establishing a state-local school-to-work component.  It is
possible that the state could receive up to $60 million for a
five-year implementation grant, as authorized under the federal
School-to-Work Opportunities Act of 1994.  Thirty percent of the
grant funds would go to the state, with 10% allowed for
administrative costs and 70% of the funds would be distributed at
the local level.  However, the state has not yet been awarded the
implementation grant.

The school-based learning element of the program consists of at
least two years of secondary education and at least one year of
postsecondary education or training.  If the program is
structured in a way to redirect the use of existing resources and
if the total number of students trained remains at FY 95 levels,     




there could be minimal fiscal impact on junior colleges. 
However, implementation of the program could also require
additional resources.  The cost of education at the junior 
college level is estimated at $3700 per student per year. 
Depending on the number of students going through the program,
costs could range from $3.7 million for 1,000 students to $370
million for 100,000 students.  Sources of funds to pay for the
costs could include federal funds, gifts, local taxes or general
revenue.

The Texas Education Agency would be responsible for modifying
performance indicators and assisting in a study of workplace
liability issues.  It would also be responsible for providing
services such as technical assistance to schools and professional
development activities.  The Commissioner of Education would help
develop and implement a plan for the preparation and
certification of instructors who are proficient in developing
curricula for and teaching school-to-work programs.   Depending
on the activities of the Workforce Development Department the
fiscal impact could be minimal or significant to the agency.

The Texas Council on Workforce and Economic Competitiveness
(TCWEC) would be responsible for strategic planning, oversight
and evaluation of school-to-work.  It would advise several
agencies on the administration and implementation of school to
work.  It would also evaluate the state's labor market
information system and develop integrated databases and
information systems to support school to work.  The bill creates
the Texas Skill Standards Board as an advisory board.  TCWEC
would be required to provide staff support.    It is estimated
that TCWEC would require 3 additional FTEs and $141,000 in
federal funds each fiscal year to comply with the provisions of
the bill.

The Texas Employment Commission would be required to coordinate
existing services with various state agencies and to provide
basic placement services.  The costs could be absorbed within
existing funding.  Costs associated with the collection of data
for the labor market information system would add 4 FTEs and
require an additional $189,000 per year.  It anticipated that
federal funds will be available.  However, the source of funding
could be from general revenue in the event that  federal funds
are not available.

In the event that Job Training Partnership Act (JTPA) funds are
accessible for the school-to-work program, the Department of
Commerce would require two additional planners at a cost of
approximately $116,000 in FY 96 and $100,000 per fiscal year
thereafter.  The cost of the additional FTE's would come from
federal JTPA funds.


The fiscal implication to the State or units of local government
cannot be determined.    





Source:   Texas Employment Commission, Council on Workforce and 
Economic
                         Competitiveness, Department of
Insurance, Higher Education
                         Coordinating Board, Department of
Commerce
          LBB Staff: JK, LR, RR