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: HB3300 by Solis, Jim (Relating to the adoption of the
21st Century Technology College and Careers Act.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3300, As Introduced: negative impact of $(14,548,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(7,274,000) *
* 2003 (7,274,000) *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
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 $(7,274,000) 4.5 *
* 2003 (7,274,000) 4.5 *
* 2004 0 0.0 *
* 2005 0 0.0 *
* 2006 0 0.0 *
***************************************************************************
Fiscal Analysis
The bill would add Chapter 315 to Title 4 of the Labor Code. The new
chapter would establish a pilot program for the 21st Century Technology
and Careers Act. The pilot program would be based on public-private
partnerships and collaborative efforts that promote voluntary educational
improvement and workforce development opportunities for high school and
college students, including initiatives that improve the transition from
educational institutions to the workforce.
If the bill is enacted with a two-thirds vote of all members in each
house, it would take effect immediately. The bill would take effect on
September 1, 2001 if enacted without a two-thirds vote. The bill would
expire on September 1, 2003.
Methodology
The fiscal impact of the bill is estimated to be approximately $7.3
million of General Revenue and 4.5 FTEs in each year of the 2002-03
biennium by the Texas Workforce Commission (TWC). TWC estimates that
$6,650,000 per year would be used to fund grant awards to 27
"partnerships" around the state. These grant awards would be used as seed
funding in the local areas to implement the program, and it is assumed
that these awards would be supplemented by contributions from the
"partnership" organizations, including businesses, chambers of commerce,
industry groups, school districts, institutions of higher education,
tech-prep consortia, and labor organizations.
The remaining $624,000 per year of the estimated costs would be used to
fund administration at the agency. For the 4.5 FTEs to administer and
monitor the program, there would be a $273,236 cost for salaries and
benefits. These 4.5 FTEs would include one Manager III for program
management at an annual salary of $63,000, one Program Specialist III
for grants management at an annual salary of $40,000, one Administrative
Technician III for administrative support at an annual salary of
$35,000, and 1.5 Auditor Vs for grants monitoring at a combined annual
salary of $75,000. TWC also estimates $12,424 per year for staff travel
to the 27 partnership areas for monitoring and assistance and $38,340
per year for indirect administration at the agency. TWC estimates it
would use contract services for an independent evaluation reviewing the
pilot program as required by the bill at a cost of $100,000 per year,
technical assistance services to the 27 partnerships at a cost of
$100,000 per year, and communications and outreach services to publicize
the program across the state at a cost of $100,000 per year.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 701 Texas Education Agency, 781 Texas Higher
Education Coordinating Board, 320 Texas Workforce
Commission
LBB Staff: JK, JO, HL