LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 12, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB554 by Carona (Relating to grants by the Texas
Workforce Commission to assist economically disadvantaged
persons enrolled in qualified postsecondary career
education programs.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB554, As Introduced: negative impact of $(10,390,596) 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 $(5,257,748) *
* 2003 (5,132,848) *
* 2004 (5,132,848) *
* 2005 (5,132,848) *
* 2006 (5,132,848) *
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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 $(5,257,748) 2.0 *
* 2003 (5,132,848) 2.0 *
* 2004 (5,132,848) 2.0 *
* 2005 (5,132,848) 2.0 *
* 2006 (5,132,848) 2.0 *
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Technology Impact
The Texas Workforce Commission (TWC) estimates fiscal implications of
$119,900 of General Revenue in fiscal year 2002 to develop an automated
tracking system for the Texas Career Opportunity Grant Program.
Fiscal Analysis
The bill would add Chapter 305 to the Labor Code to establish the Texas
Career Opportunity Grant program which would provide tuition assistance
grants to Texas residents enrolled in postsecondary education programs
in a specific career field at a proprietary school in Texas. If enacted
by a vote of two-thirds of all members in each house, the bill would
become effective immediately. If the bill is not enacted by a two-thirds
vote in each house, the bill would take effect on September 1, 2001.
Methodology
The fiscal implications of the bill are estimated to be $5,257,748 in
fiscal year 2002 and $5,132,848 in fiscal year 2003 to General Revenue.
TWC estimates that $5 million of General Revenue in each year could fund
approximately 2,500 individuals at an average tuition grant of $2,000
per person. Based upon the operation of similar programs at the agency,
TWC estimates that the administration of the tuition grant program would
require one Program Specialist I FTE at an annual salary of $41,800 and
the monitoring of the tuition grant program would require one Auditor IV
FTE at an annual salary of $42,000. Included in the total fiscal
implications are operating and employee benefits costs associated with
these two FTEs. The two FTEs and associated costs are estimated to be
funded with General Revenue.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 781 Texas
Higher Education Coordinating Board, 320 Texas
Workforce Commission
LBB Staff: JK, JO, HL