LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 11, 2001 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB3590 by Hunter (Relating to establishing the Texas Fund for Geography Education to support geography education at public institutions of higher education.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3590, Committee Report 1st House, Substituted: negative impact * * of $(500,000) 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 $(500,000) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) * * Year General Revenue Fund from National Geographic * * 0001 Society Texas Fund * * 2002 $(500,000) $500,000 * * 2003 0 0 * * 2004 0 0 * * 2005 0 0 * * 2006 0 0 * *************************************************************************** Fiscal Analysis The bill amends the Education Code to create the National Geographic Society Texas Fund for Geography Education. The fund would be operated by the National Geographic Society of Washington, D.C. Management of the fund would be by contractual agreement between the Texas Higher Education Coordinating Board (THECB) and the Society. THECB's actions would be guided by a seven-member advisory committee that would solicit proposals from the state's educational institutions. Under the bill, any appropriated funds would be matched by funds from the society. THECB would be authorized to transfer to the society any funds appropriated to it for that purpose. This bill takes effect September 1, 2001, if funds for the benefit of the fund are appropriated by the 77th legislature. Methodology Based on analysis by the THECB, it is assumed the National Geographic Society of Washington, D.C. would match a one-time state contribution of $500,000 in general revenue funds in fiscal year 2002 to create a $1 million endowment for geography education in Texas. It is assumed investment earnings would support the fund in future years. The THECB believes the administrative duties that would be required to operate the fund and report on the fund's activities could be paid for through funds currently available to the agency. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 781 Texas Higher Education Coordinating Board, 304 Comptroller of Public Accounts LBB Staff: JK, CT, DB, KC