LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 9, 1999 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB3544 by Hodge (Relating to student loan repayment assistance for certain dentists), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3544, 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year Other Educational and General Employees from FY 1999 * * Income/ GR-Dedicated * * 8022 * * 2000 $(117,747) 2.0 * * 2001 (117,747) 2.0 * * 2002 (117,747) 2.0 * * 2003 (117,747) 2.0 * * 2004 (117,747) 2.0 * *************************************************************************** Technology Impact The Texas Higher Education Coordinating Board would have to establish a system for tracking program participants and making loan repayments to borrowers and lenders. Fiscal Analysis The bill would authorize the Texas Higher Education Coordinating Board (THECB) to provide repayment assistance of student loans for dentists whho practice in an area of the state that is underserved with respect to dental care. The THECB could appoint advisory committees to assist in implementing the legislation. The THECB would adopt rules to implement the legislation, including setting the maximum amount of repayment assistance that may be received by a dentist in one year. The bill would establish a dental school tuition set-aside of two percent of tuition charges for resident students in a dental training degree program. These revenues would be used to fund the repayment program. Methodology An estimate from the THECB indicates that $117,747 in tuition charges would be available for loan repayments in each fiscal year. This analysis assumes the THECB would set the maximum amount of repayment assistance in a given year, so as not to exceed the amount of tuition revenue available to fund the program. The tuition set-aside is presented as a cost to Other Educational and General Income at the state's three dental schools. 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