LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session Revision 1 April 19, 1999 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB3447 by Swinford (Relating to the creation of a student endowment scholarship and internship program), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3447, As Introduced: negative impact of $(4,850,000) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 (4,850,000) * * 2002 (4,900,000) * * 2003 (4,900,000) * * 2004 (4,950,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2000 $0 * * 2001 (4,850,000) * * 2002 (4,900,000) * * 2003 (4,900,000) * * 2004 (4,950,000) * ***************************************************** Fiscal Analysis The bill would allow a general academic teaching institution to participate in the Student Endowment Scholarship and Internship Program. The student body at an institution would have to approve an additional fee to participate in the program. These institutions would have until September 1, 2004 to elect to participate in the program. The state would provide a matching grant to participating institutions. For a five-year period beginning with the fiscal year after an institution holds the election, the legislature would appropriate an amount not to exceed 50 cents for each of the total number of semester credit hours in which students are enrolled at the participating institution during an academic year. The state appropriation could not exceed the revenue generated from the additional fee by the institution for that year. The House, in the general appropriations act, has provided $100 million for the biennium for student financial aid. Methodology For purposes of this fiscal note, it is assumed that by fiscal year 2001. All general academic institutions in the state would have approved the additional fee in fiscal year 2000. Also, it is assumed the state would make the maximum match of 50 cents per the total number of semester credit hours at the institutions. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 781 Higher Education Coordinating Board LBB Staff: JK, CT, PF