LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 27, 1997
TO: Honorable Teel Bivins, Chair IN RE: Senate Bill No. 1577, Committee Report 1st House, Substituted
Committee on Education By: Bivins
Senate
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, operation 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 1st House, Substituted FN Revision 1
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