LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
Revision 1
March 30, 1999
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1689 by Greenberg (Relating to student loan repayment
assistance for certain child-care workers), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1689, As Introduced: positive impact of $0 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 $0 *
* 2001 0 *
* 2002 (633,600) *
* 2003 (731,363) *
* 2004 (799,425) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year Workforce Commission Federal General Revenue Fund *
* Account - Federal 0001 *
* 5026 *
* 2000 $(262,050) $0 *
* 2001 (485,100) 0 *
* 2002 0 (633,600) *
* 2003 0 (731,363) *
* 2004 0 (799,425) *
***************************************************************************
Technology Impact
The Coordinating Board would need to design and develop an automated
system for tracking loan repayment and for tracking the completion of
service credit.
Fiscal Analysis
The bill would allow a person who holds a degree in early childhood
development or the equivalent to receive assistance to repay any loan
that was used for education costs while attending an institution of
higher education. The person must agree to serve two years as a early
child-care worker at a child-care facility. For each year the person
receives the loan repayment assistance, the assistance could not exceed
15 percent of the person's outstanding student loans.
Methodology
This analysis presumes that there will be a rider in the appropriation
bill that funds this program for the forthcoming biennium from sources
other than general revenue and that in the absence of riders in future
appropriation bills necessary program funding would come from general
revenue.
It is assumed that 100 early child-care workers would participate in the
first year and an additional 100 participants each year thereafter. The
repayment assistance limit of 15 percent of a participant's outstanding
students loans would reduce the amount of annual assistance a participant
would receive in future years of the program. Assumptions were made
about the number of participants who would not complete the service
requirement.
The Coordinating Board indicates a 10 percent cost for administering the
program and an additional $20,000 needed to establish the automated
system in the first year of the program.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, CT, PF