LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 3, 2001
TO: Honorable Jim Solis, Chair, House Committee on Economic
Development
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2503 by Homer (Relating to a career development
center's assessment of the job skills of certain
persons.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2503, As Introduced: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* 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 *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Workforce Commission Federal *
* Account - Federal *
* 5026 *
* 2002 $(3,046,486) *
* 2003 (3,682,650) *
* 2004 (3,682,350) *
* 2005 (3,682,350) *
* 2006 (3,682,350) *
*****************************************************
Fiscal Analysis
The bill would amend Chapter 2308 of the Government Code by adding
Section 2308.3123 which would require each career development center in
a local workforce development area to administer the WordKeys assessment
test or an equivalent test to assess an individual's job skills. If
enacted, the bill would take effect on September 1, 2001.
Methodology
The fiscal impact of the bill would be $6.7 million in federal Temporary
Assistance for Needy Families (TANF) funds for the 2002-03 biennium. This
cost is assumed within the 2002-03 TANF appropriations recommended for
the Texas Workforce Commission, given the limited amount of TANF federal
funding available to the state.
For the purposes of this fiscal note, it is assumed that all 28 local
workforce development boards would use the WordKeys assessment test and
would become licensed as WordKeys Service Centers at a cost of $4,000.
The renewal license fee is $2,500 per year. It is also assumed that all
of the local boards would use the three basic component assessment
tests--Reading for Information, Applied Mathematics, and Locating
Information--out of the eight WordKeys component assessment tests
available to assess each client. Each basic assessment test would cost $6
per client, or $18 for three. The costs of any other component
assessment test requested by a potential employer would be paid by that
employer.
Recipients of TANF benefits in the Choices program and of Food Stamp
Employment & Training (FS E&T) benefits would need to be assessed. It is
estimated that there would be 147,563 Choices clients and 15,464 FS E&T
clients in fiscal year 2002. In fiscal year 2003 and subsequent years,
it is estimated that there would be 185,670 Choices clients and 15,155
FS E&T clients.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 320 Texas Workforce Commission
LBB Staff: JK, JO, RT, HL