LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 14, 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.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB554, Committee Report 1st House, Substituted: negative impact * * of $(10,306,396) 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 $(5,173,548) * * 2003 (5,132,848) * * 2004 (5,132,848) * * 2005 (5,132,848) * * 2006 (5,132,848) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(5,173,548) 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 * *************************************************************************** Technology Impact The Texas Workforce Commission (TWC) now estimates fiscal implications of $40,700 of General Revenue in fiscal year 2002 to develop an automated tracking system for the Texas Career Opportunity Grant Program. This estimate is different from the estimate provided by the agency in the fiscal note of the bill as introduced. 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 with an appropriation of funds for the grant program, the bill would take effect on September 1, 2001. Methodology The fiscal implications of the bill are estimated to be $5,173,548 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 of the operation of the program 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 benefit costs associated with the 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: 320 Texas Workforce Commission, 304 Comptroller of Public Accounts, 781 Texas Higher Education Coordinating Board LBB Staff: JK, JO, HL