Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB2383 by Lucio III (relating to the provision of certain subsidies and scholarships to particular public school students or graduates.), Committee Report 2nd House, As Amended
Estimated Two-year Net Impact to General Revenue Related Funds for HB2383, Committee Report 2nd House, As Amended: a negative impact of ($788,606) through the biennium ending August 31, 2009.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008
($396,803)
2009
($391,803)
2010
($391,803)
2011
($391,803)
2012
($391,803)
Fiscal Year
Probable Savings/(Cost) from GENERAL REVENUE FUND 1
Change in Number of State Employees from FY 2007
2008
($396,803)
1.0
2009
($391,803)
1.0
2010
($391,803)
1.0
2011
($391,803)
1.0
2012
($391,803)
1.0
Fiscal Analysis
The bill would entitle a student to reimbursement for the cost of a certification examination upon completion of a school district's career and technology program in which a student receives instruction for employment in a certain trade or occupation if the student passes the examination and demonstrates financial need.
Methodology
Based upon information submitted to the Texas Education Agency (TEA) by local school districts, approximately 14,000 students earned industry certifications in 2005-2006.
In establishing financial need, the College Board uses the federal guidelines for eligibility to participate in the national free and reduced meal program. Forty eight percent of students enrolled in career and technology programs would be considered eligible for financial need based upon these guidelines. It is estimated that 6,748 students could be eligible to apply for subsidies each year.
It is difficult to estimate the cost because of the very wide variation in certification costs. Many computer certifications are available for around $100 an exam. Assuming for purposes of this estimate that the amount of the subsidy would be $100 per exam and that half the eligible population would apply for the subsidy, the estimated cost of providing the subsidies would be $337,500 per year. If a larger proportion of eligible students applied, actual costs may be higher.
TEA estimates that one FTE would be required to administer the program at an annual cost of about $55,000.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
320 Texas Workforce Commission, 701 Central Education Agency