LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 13, 1999
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3544  by Hodge (relating to student loan repayment
               assistance for certain dentists), Committee Report 2nd
               House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3544, Committee Report 2nd House, Substituted:  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:
  
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*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                         (177,747)                             2.0 *
*  2003                         (177,747)                             2.0 *
*  2004                         (177,747)                             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 who
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.
  
  
Source Agencies:   781   Higher Education Coordinating Board
LBB Staff:         JK, CT, PF