LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 3, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2898 by Burnam (Relating to loan repayment assistance
for certain social workers who work for the Department of
Protective and Regulatory Services.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2898, As Introduced: negative impact of $(4,007,529) 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. *
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The bill amends the Education Code to allow social workers employed by
the Department of Protective and Regulatory Services (PRS) to apply for
financial assistance for repayment of education loans. Eligible social
workers would receive repayment assistance for up to five years and the
amount of loan repayment in any given year could not exceed 20 percent
of the total amount of the social worker's outstanding education loans.
The program would be administered by the Texas Higher Education
Coordinating Board (THECB).
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(2,047,958) *
* 2003 (1,959,571) *
* 2004 (1,959,571) *
* 2005 (1,959,571) *
* 2006 (1,959,571) *
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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 $(2,047,958) 3.0 *
* 2003 (1,959,571) 3.0 *
* 2004 (1,959,571) 3.0 *
* 2005 (1,959,571) 3.0 *
* 2006 (1,959,571) 3.0 *
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Technology Impact
Programming would be required: to create a system for tracking
participants and making loan payments co-payable; to enable processing
of applications and vouchers; to create an accounting system; to monitor
education loan debt and holders of education loan notes; to track social
workers; for an imaging system; and for a telecommunications system.
Fiscal Analysis
THECB estimates a General Revenue cost to the agency of $197,958 in
fiscal year 2002, which includes $81,756 in salaries for two part-time
employees and two full-time employees (three FTE's), $50,000 for
professional services, and $66,202 for travel, equipment, operating
expenses, and administrative expenses.
THECB estimates a General Revenue cost to the agency of $109,571 in
fiscal years 2003 through 2006, which includes $76,479 in salaries for
two part-time employees and two full-time employees (3 FTE's), and
$33,092 for travel, operating expenses, and administrative expenses.
THECB estimates a General Revenue cost to the agency of $1.5 million per
year for education loan repayments for new social workers.
PRS estimates a General Revenue cost to THECB of $350,000 per year for
licensed social workers currently employed at PRS.
Methodology
THECB reports that the average education loan debt is approximately
$15,000 for licensed social workers with baccalaureate degrees and
approximately $20,000 for licensed social workers with masters degrees.
The average turnover rate for social work positions in Child Protective
Services, Adult Protective Services, and Child Care Licensing was almost
25 percent in fiscal year 2000, which translates into approximately 900
vacancies. Of these vacancies, THECB assumes just over 55 percent, or
500, have education loan debt. The annual repayment amount of $1.5
million is calculated at $3,000 for 500 new social workers per year.
A recently conducted PRS survey indicates that approximately 512 licensed
social workers could be affected by this legislation, of which as many
as 175 may have outstanding education loans at an average of $10,000,
which translates into $1.75 million over the five-year period, or
$350,000 per year. The annual repayment amount of $350,000 is based on
repayments of $2,000 for 175 currently employed licensed social workers
per year.
THECB and PRS believe that, if passed, the bill would increase the number
of licensed social workers PRS is able to recruit and retain.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 530 Department of Protective and Regulatory
Services, 781 Texas Higher Education Coordinating
Board
LBB Staff: JK, CT, KC