LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 13, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB897 by McCall (Relating to certain programs to develop
the technology workforce in Texas by supporting and
promoting higher education in electrical engineering and
computer science.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB897, As Introduced: negative impact of $(10,156,000) through *
* the biennium ending August 31, 2003. *
* *
* The bill calls for an appropriation of no less than the private *
* contributions to the Technology Workforce Development Account. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(5,078,000) *
* 2003 (5,078,000) *
* 2004 (5,078,000) *
* 2005 (5,078,000) *
* 2006 (5,078,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(5,078,000) 1.0 *
* 2003 (5,078,000) 1.0 *
* 2004 (5,078,000) 1.0 *
* 2005 (5,078,000) 1.0 *
* 2006 (5,078,000) 1.0 *
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Fiscal Analysis
The bill establishes programs to increase the number of electrical
engineering and computer science graduates from Texas public universities
and increase collaborative efforts among universities and private
technology companies in Texas.
The bill creates a Texas Engineering and Technical Consortium made up of
higher education institutions and private technology companies, which
would coordinate resource-sharing among consortium members.
The bill establishes a technology workforce development account in the
Treasury administered by the Texas Higher Education Coordinating Board
(THECB). The account would include funds transferred by the Consortium
and State matching appropriations.
THECB makes grants from the account to eligible institutions for the
purpose of increasing the number of computer science and electrical
engineering graduates.
The bill provides for appropriations to be at least equal to the amount
of private contributions.
Methodology
It is assumed that technology companies would contribute $5,000,000 per
year to the fund and the Legislature would appropriate $5,000,000 in
matching funds.
Costs to administer the program at the THECB are estimated at $78,000 in
FY 2002 and $68,000 per year thereafter.
Although this program could provide an incentive for more students to
take electrical engineering and computer science course, which are
generally higher formula-generating courses, no increase has been
included for increased formula funding.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, PF, DB