LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 2, 1997 TO: Honorable Irma Rangel, Chair IN RE: Senate Bill No. 1311, As Engrossed Committee on Higher Education By: Moncrief House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1311 ( Relating to providing scholarships at institutions of higher education for certain out-of-state internship programs.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1311-As Engrossed Implementing the provisions of the bill would result in a net negative impact of $(400,000) to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis The bill would establish the Texas-Washington D.C. Intern Scholarship Program and define eligibility for the program. The bill would give the Texas Higher Education Coordinating Board responsibility for administering the program. The program would be funded through legislative appropriations, gifts, and/or grants. Administrative costs to the board would be funded from program funds. Methodolgy The bill would limit the number of grants to 100 per year and the amount of each grant to the lesser of $2,000 or the student's documented financial need. Therefore, the cost of the program would be up to $200,000 per year. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Savings/(Cost) from General Revenue Fund 0001 1998 ($200,000) 1998 (200,000) 2000 (200,000) 2001 (200,000) 2002 (200,000) Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($200,000) 1999 (200,000) 2000 (200,000) 2001 (200,000) 2002 (200,000) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: 781 Higher Education Coordinating Board LBB Staff: JK ,LP ,RR ,LD