LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 30, 1997 TO: Honorable Irma Rangel, Chair IN RE: Senate Bill No. 1577, Committee Report 2nd House, as amended Committee on Higher Education By: Bivins House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1577 ( Relating to public postsecondary technical and vocational education to the programs, operaton and administration of the Texas State Technical College System.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1577-Committee Report 2nd House, as amended No significant fiscal implication to the State is anticipated. 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 This bill would (1) define the mission of TSTC; (2) designate the Marshall Extension Center as a campus; (3) allow the transfer of the extension centers in Abilene, Breckenridge and Brownwood to nearby community colleges; (4) direct the Coordinating Board to make recommendations to the legislature to modify funding formulas to cover the special costs associated with highly specialized advanced and emerging technical or vocational programs; and (5) allow the Coordinating Board to establish a grants program to assist a public technical institute or junior college to cover the costs for the start-up or expansion of programs in a highly specialized advanced or emerging technical field to the extent funds are appropriated. Methodology This bill would limit TSTC to offering only those academic courses required for accreditation. There would be no fiscal impact to the state because academic courses not offered by TSTC would be offered by a nearby community college. Funding based on contact hours would be appropriated to whichever institution was offering the course. In designating the Marshall Extension Center as a campus, the TSTC System estimates that the addition of 1 FTE would be needed to administer student financial aid at a cost of $35,000 each year. The transfer of the extension centers in the bill is not mandatory. If the transfers did occur, there could be cost savings associated with transferring the physical plant costs to either the community college or to the corporation authorized under Sections 10, 11 and 12 of this bill. It is assumed that the Marshall campus, including the three buildings currently used on that campus, would be transferred at no cost and with no debt to the TSTC System. It is assumed that the mission of that campus would not be significantly expanded and there will be no need for additional facilities in the near future. It is assumed that while there may be some shift of student enrollments, the net cost to the state of enrollment changes will be zero. Costs for maintenance, operations and utilities are included in the proposed 1998-99 appropriations bill and there would be no additional costs due to this bill. The bill would direct the Higher Education Coordinating Board to make recommendations to the legislature to modify the funding formulas to provide a higher level of funding for highly specialized advanced and emerging technologies. The level of funding provided to support this provision would be dependent upon legislative action. The bill would also authorize a grant program to be administered by the Higher Education Coordinating Board to the extent funds are appropriated. Again, the level of funding provided to support this provision would be dependent upon legislative action. 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 ,DB