LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 26, 2001
TO: Honorable Bill Ratliff, Lieutenant Governor
Honorable James E. "Pete" Laney, Speaker of the House
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1057 by Ellis, Rodney (Relating to financial aid
programs, including loan repayment programs, for certain
students of institutions of higher education or teacher
certification programs and for certain classroom
teachers.), Conference Committee Report
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1057, Conference Committee Report: negative impact of *
* $(16,000,000) 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. *
* *
* The Conference Committee Report for Senate Bill 1 includes $11 *
* million for the Teach for Texas Programs. *
* *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(5,500,000) *
* 2003 (10,500,000) *
* 2004 (10,500,000) *
* 2005 (10,500,000) *
* 2006 (10,500,000) *
****************************************************
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 $(5,500,000) 4.0 *
* 2003 (10,500,000) 6.5 *
* 2004 (10,500,000) 6.5 *
* 2005 (10,500,000) 6.5 *
* 2006 (10,500,000) 6.5 *
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Fiscal Analysis
The Conference Committee Report requires the Texas Higher Education
Coordinating Board (THECB) to adopt rules to provide those who are
experiencing hardship with more time to receive a TEXAS Grant and
requires THECB to develop a plan to disseminate TEXAS Grant information
and other financial aid information. THECB believes these requirements
could be implemented at little or no cost.
In addition, the bill revises requirements and expands the existing Teach
for Texas Grant Program, separating it from the TEXAS Grant Program and
renaming it the Teach for Texas Financial Assistance Program.
The bill also establishes a new Teach for Texas Alternative Certification
Assistance Program for persons with a bachelors' degree wanting to teach
in either subject areas or regions of the state that are in need of
teachers. Recipients must agree to teach for five years.
The bill also creates a loan repayment program for teachers who have
taught at least one year at the pre-school, primary, or secondary level
in a public school in an area or field of acute teacher shortage. A
recipient must be employed full-time and can receive up to $1,000 per
year for five years to be used in the repayment of student loans.
Methodology
It is assumed an additional $3.0 million would be appropriated for the
Teach for Texas Programs for fiscal year 2002 and an additional $8.0
million would be appropriated for fiscal year 2003. At an average award
amount of $5,200, approximately 426 new Teach for Texas recipients would
be served in fiscal year 2002 and approximately 881 would be served above
current levels in fiscal year 2003.
The loan repayment program is estimated to require $2.5 million per year
to fund 2,500 teachers at $1,000.
The amounts above include associated administrative costs of
approximately $0.3 million in each fiscal year for travel, salaries, and
other operating costs. THECB estimates that four additional full-time
equivalent employees would be required at the agency in fiscal year 2002
and 6.5 additional employees would be required in fiscal year 2003 and
subsequent years.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, KC