LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 7, 1999
TO: Honorable Royce West, Chair, Senate Subcommittee on
Higher Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB37 by Ellis Rodney (Relating to providing scholarships
to students at institutions of higher education who meet
certain academic, citizenship, financial need, and other
requirements.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB37, As Introduced: negative impact of $(27,864,064) 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 Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(350,000) *
* 2001 (27,514,064) *
* 2002 (28,889,766) *
* 2003 (30,334,254) *
* 2004 (31,850,966) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable *
* Year Savings/(Cost) from Savings/(Cost) from Savings/(Cost) from *
* General Revenue Fund General Revenue Fund General Revenue Fund *
* for Grants for for Teach for Texas for Coordinating *
* Public Service Grants Board Administrative *
* 0001 0001 Costs *
* 0001 *
* 2000 $0 $0 $(350,000) *
* 2001 (22,420,529) (4,422,460) (671,075) *
* 2002 (23,541,555) (4,643,583) (704,628) *
* 2003 (24,718,632) (4,875,762) (739,860) *
* 2004 (25,954,563) (5,119,550) (776,853) *
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Technology Impact
The Texas Higher Education Coordinating Board would have to develop a new
information system to administer this program. The bill would require
tracking of students for a number of years to insure that they complete
the service requirement or repay the money.
Fiscal Analysis
The bill would establish the Texas Hope Tuition Scholarship Program to
provide the Hope Tuition Grant for Public Service and the Teach for Texas
Hope Tuition Grant. Grants would be available to Texas residents who
are enrolled in an institution of higher education. These students must
come from a low-income or middle-income family and establish financial
need as defined by the Coordinating Board, and have to have graduated
from high school with a cumulative grade point average of at least 80 on
a scale of 100 or demonstrated academic excellence in any manner
determined by the Coordinating Board.
To receive a Tuition Grant for Public Service, a student would have to be
in a undergraduate degree or certificate program and agree to perform
public service that equals or exceeds an average of five hours for each
full week of the term or semester. The grant could not exceed the
average amount of tuition and fees the student would be charged at a
public university.
To receive a Teach for Texas Hope Tuition Grant, a student would have to
be in a baccalaureate or master's degree program in a teaching field that
is experiencing a critical shortage of teachers. The person would have
to agree to teach in a public school that is experiencing a critical
shortage of teachers. The grant could not exceed two times the average
amount of tuition and fees the student would be charged at a public
university.
The grants would be considered a loan until the conditions of the grant
are met. To cover administrative costs, the Coordinating Board would be
allowed to spend up to 2.5 percent of the funds appropriated for the
program.
The program would be funded from the Texas Hope Tuition Scholarship Fund.
The trust fund would be established outside the treasury but held in
trust by the comptroller. Money in the trust fund could be spent
without appropriation and only to fund the program. Interest and income
from the assets of the fund would be credited to and deposited in the
trust fund.
Methodology
For purposes of this estimate, it is assumed that "financial need" refers
to students whose family income level is less than $35,000. Of the
348,522 students in college who meet this financial need requirement.
Assumptions were made about the number of these students who would meet
the high school academic requirement and those who would elect to
participate in the Public Service and Teach for Texas Programs. It was
assumed that 55 percent of these students attend community colleges and
45 percent attend universities. The average costs per student for the
public service program would be based on the average cost of tuition and
fees. Double the tuition and fee average was used for students
participating in the teacher program.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, CT, PF