LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 12, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB40 by Zaffirini (Relating to tuition assistance for
licensed vocational nursing students who agree to
practice in long-term care facilities.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB40, As Introduced: 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, HD, PF, DB, ML