LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 18, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2766 by Delisi (Relating to repayment assistance for
certain education loans owed by certain state
attorneys.), Committee Report 1st House, Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2766, Committee Report 1st House, Substituted: negative impact *
* of $(1,546,000) 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 $(798,000) *
* 2003 (748,000) *
* 2004 (748,000) *
* 2005 (748,000) *
* 2006 (748,000) *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year Revenue Savings/ Revenue Savings/ Number of *
* Gain/(Loss) (Cost) from Gain/(Loss) (Cost) from State *
* from General from New New General Employees *
* Estimated Revenue General Revenue from FY 2001 *
* Other Fund Revenue Dedicated *
* Educational 0001 Dedicated for Loan *
* and General for Loan Repayment *
* Income Repayment Program *
* Account/ Program *
* GR- *
* Dedicated *
* 0770 *
* 2002 $(84,856) $(798,000) $798,000 $(798,000) 0.5 *
* 2003 (84,856) (748,000) 748,000 (748,000) 0.5 *
* 2004 (84,856) (748,000) 748,000 (748,000) 0.5 *
* 2005 (84,856) (748,000) 748,000 (748,000) 0.5 *
* 2006 (84,856) (748,000) 748,000 (748,000) 0.5 *
***********************************************************************
Fiscal Analysis
This bill would amend the Education Code and the Tax Code to establish a
program, administered by the Texas Higher Education Coordinating Board,
to assist certain attorneys in repayment of student loans.
An attorney would be eligible for a maximum of five years assistance if
the attorney: made an application to the board, was currently employed
as an attorney by the Office of the Attorney General, and had at least
one year employment as such. The assistance, which would be provided in
the form of grants, could be used to repay qualified loans undertaken for
an accredited undergraduate and law school education.
This bill would redirect 1 percent of the tuition revenue charged to
resident students, enrolled in state school of law, to the program. The
redirected tuition revenue would be transferred to the Comptroller for
deposit in the State Treasury and dedicated to the program.
This bill would take effect September 1, 2001. Agency rules would be
adopted no later than December 1, 2001.
Methodology
Based on analysis by the Office of the Attorney General, 120 attorneys at
the Office of the Attorney General would be eligible for repayment
grants. Assuming that grants of $6,000 per year were offered for each
attorney, the cost of repayment grants would be $720,000 each year. It
is assumed that grants would be made to new attorneys as current
attorneys draw down the maximum amount.
The Texas Higher Education Coordinating Board estimates administrative
costs for the program of $78,000 for fiscal year 2002 and $28,000 each
year thereafter.
Based on the Texas Higher Education Coordinating Board Fiscal Activities
Report, the total law school tuition for 2001 was $11,314,135. It is
estimated that 75% of total law school tuition or $8,485,601 is paid by
resident students. One percent or $84,856 would be transferred to the
new general revenue dedicated amount. Since this tuition is currently
included in formula appropriations for general academics, it is assumed
that general revenue would be provided for the reduction in tuition
revenue. It is also assumed that the remaining costs would be provided
from general revenue funds and these amounts would be transferred to the
new general revenue dedicated account.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 302 Office of the Attorney General, 304
Comptroller of Public Accounts, 781 Texas Higher
Education Coordinating Board
LBB Staff: JK, CT, PF, DB