LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
Revision 1
April 28, 1999
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB713 by Cuellar (Relating to the Texas Gateway to the
Future Grant Program and the Teach for Texas Program;
consolidating financial aid, grant, and scholarship
programs; and providing for the education,
certification, and recruitment of teachers), As
Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB713, As Engrossed: negative impact of $(144,230,773) through *
* the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(61,311,500) *
* 2001 (82,919,273) *
* 2002 (128,931,908) *
* 2003 (145,108,674) *
* 2004 (153,614,287) *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 1999 *
* 0001 *
* 2000 $(61,311,500) 7.5 *
* 2001 (82,919,273) 7.5 *
* 2002 (128,931,908) 7.5 *
* 2003 (145,108,674) 7.5 *
* 2004 (153,614,287) 7.5 *
***************************************************************************
Fiscal Analysis
The bill would establish the Texas Gateway to the Future Scholarship
Program and the Teach for Texas Program, and amend an existing loan
repayment program.
The Gateway Program would provide college scholarships for students who
received an associate s degree not earlier than the 1998-99 school year
(this provision added on House Floor), or for students who graduated high
school not earlier than the 1998-99 school year. These recent high
school graduates must have completed the recommended or advanced high
school curriculum or equivalent curriculum. If the student's high school
did not offer the entire recommended or advanced high school curriculum
or equivalent curriculum, the student must have taken all the courses
offered. Students would be obliged to meet financial need requirements
and to enroll at least one-half of a full course load. To maintain the
scholarship, a student would have to make satisfactory academic progress
toward a degree.
The amount of the scholarships would be based on the average cost of
tuition and fees at a public university, public community college, or
public technical institute, as appropriate. The scholarship amount would
be reduced only if other gift aid for which the person is eligible
exceeds the total cost of attendance.
The Coordinating Board (THECB) would administer the program, including
defining financial need requirements and conduct a study of the
relationship of the college performance of students to their
participation in the recommended or advanced high school curriculum.
THECB would develop a center for financial aid information and establish
a new advisory committee to develop information provided by the center.
The center would maintain a toll-free telephone line.
The bill would require the Texas Education Agency to expand the minimum
standards for school district staff development to include guidelines for
principals, counselors, and teachers to provide middle school students,
junior high school students, high school students, and their parents with
information about higher education, including financial aid
opportunities.
A school district would be limited in the percentage of recommended or
advanced curriculum courses that are offered by distance learning
methods.
As amended on the House Floor, the bill would direct the State Board for
Educator Certification (SBEC) to implement the Teach for Texas Program,
which would be designed to attract individuals to the teaching
profession. Stipends would be offered to post-baccalaureate teacher
certification candidates. Tuition assistance and loan forgiveness by
offered, with special consideration given to those who agree to teach in
an under-served area. In addition, a media campaign would be conducted
to ensure that potential participants are aware of the program.
As amended on the House Floor, the bill would amend existing statute to
make loan repayment assistance available to full-time faculty who
received a doctoral degree after September 1, 1994 and who teach in an
institution of higher education in a county that borders Mexico.
Because of the phasing out of the New Horizons Scholarship Program,
institutions of higher education would retain their portion of the
matching funds which could be used for other purposes. The $771,990 per
year in local match would be phased out over a four-year period.
Methodology
For purposes of this estimate, it is assumed that "financial need" refers
to students whose family income level was less than $15,000 (these
students have an expected family contribution of zero). To determine
scholarship costs, the statewide average costs of tuition and fees at a
community or technical college or four-year institution were used.
Estimates of the number of eligible students were made based on the
number of high school students expected to complete the recommended or
advanced or equivalent curriculum and the number of associate degree
recipients. Historical information on the rate of high school graduates
and associate degree recipients enrolling and on retention rates at
institutions of higher education was used to determine the number of
students receiving scholarships. Additional general revenue would be
necessary to cover the increase in formula funding for additional
students.
The State Board of Education Certification (SBEC) estimates that 7,000
post-baccalaureate teacher certification candidates would qualify for a
$2,000 stipend each year. The number of candidates would increase by 3%
each year. SBEC would provide tuition assistance or loan forgiveness
based on 5,000 positions filled being filled by emergency certificate
holders. The average assistance or forgiveness would be $2,500 per
recipient. The media campaign required by the bill is estimated to cost
$450,000 per year.
The Higher Education Coordinating Board (THECB) estimated 27 recipients
would receive $1,470 in repayment assistance each year.
THECB estimates the cost of operating the financial aid center to be
$100,000 per year.
Estimates on the number of staff necessary to implement the program and
start-up and ongoing administrative costs were provided by the affected
agencies.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, CT, PF