LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 25, 2001 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB40 by Zaffirini (Relating to tuition assistance for licensed vocational nursing students who agree following their licensure to practice in long-term care facilities.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB40, As Engrossed: negative impact of $(1,303,697) 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 $(569,029) * * 2003 (734,668) * * 2004 (754,733) * * 2005 (786,300) * * 2006 (819,446) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings Change in Number of State * * Year (Cost) from General Revenue Employees from FY 2001 * * Fund * * 0001 * * 2002 $(569,029) 1.0 * * 2003 (734,668) 2.0 * * 2004 (754,733) 2.0 * * 2005 (786,300) 2.0 * * 2006 (819,446) 2.0 * *************************************************************************** Fiscal Analysis This bill would amend the Texas Education Code, and add Section 61.659 to create a tuition assistance program for Licensed Vocational Nurses (LVN) who agree to work in long-term care facilities. If an LVN student drops out of the program, does not get licensed, or otherwise does not fulfill their obligation to work in a long-term care facility, the bill requires that the tuition assistance be repaid. Section 2 provides for the bill to take effect immediately if it receives the required two-thirds vote in both chambers, otherwise the effective date is September 1, 2001. Methodology The Texas Higher Education Coordinating Board (THECB) estimates that 847 students would be eligible for tuition assistance beginning in FY 2002. It is assumed that one-half of the students would complete the program in the first year and the remaining half would complete it in two years. It is also assumed that the number of new students would increase 5% each year and the annual tuition rate would be $458. Based on these assumptions, the cost of the tuition assistance would equal $387,926 in FY 2002 and increase to $696,063 in FY 2006. THECB estimates the cost to implement an automated system would be $100,000 in FY 2002. The agency also estimated the cost to administer the program would be $81,103 in FY 2002, $133,383 in FY 2003, and $123,383 each year for FYs 2004 through 2006. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 530 Department of Protective and Regulatory Services, 324 Texas Department of Human Services, 781 Texas Higher Education Coordinating Board LBB Staff: JK, CT, HD, PF, DB, ML