80(R) HB 2978 - Enrolled version

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	($3,700,000)
2009	($6,300,000)
2010	($8,500,000)
2011	($10,400,000)
2012	($12,300,000)

Fiscal Year	Probable Savings/(Cost) from GENERAL REVENUE FUND 1
2008	($3,700,000)
2009	($6,300,000)
2010	($8,500,000)
2011	($10,400,000)
2012	($12,300,000)

Fiscal Year	Change in Number of State Employees from FY 2007
2008	1.0
2009	1.0
2010	1.0
2011	1.0
2012	1.0

Fiscal Analysis

Under provisions of the bill, the Coordinating Board would be required to establish and administer a one-week summer program to take place on the campus of each general academic teaching institution that offers an engineering degree program. The Coordinating Board would establish the requirements for admission to a summer program and establish and administer scholarships for students pursuing a degree in engineering at a general academic teaching institution. Under provisions of the bill, to qualify for a scholarship a student must: (1) have graduated with a grade point average in the
top 20 percent of the student's high school graduating class; (2) have graduates from high school with a grade point average of at least 3.5 on a four-point scale or the equivalent in mathematics and science courses offered under the recommended or advanced high school program and (3) maintain an overall grade point average of at least 3.0 on a four-point scale at the general academic teaching institution in which the student is enrolled. The Coordinating Board would administer these programs using available appropriations and gifts, grants, and donations made for the purposes of this subchapter.

Methodology

The costs associated with the summer bridge program and the scholarship program will be addressed separately.

The Coordinating Board estimates that a one week summer camp with 20 participants costs on average $10,000 to execute. Some institutions will want to hold four to six sessions. Some institutions will want to hold only one session, based on demand from high school students. If the average number of sessions is two, the program would cost an estimated $380,000 per summer.

The Coordinating Board estimates that the total number of eligible students for scholarships is close to 5,500, given the eligibility parameters and graduation within six years for engineers. They estimate that with average tuition of $5,300 and an average cost for books and supplies of $1,000 the total projected cost would be approximately $35 million. If the State were to fund the two programs at $10 million for the 2008-09 biennium, the Coordinating Board estimates that approximately 515 scholarships would be awarded in the first year using approximately $3.3 million of the appropriation. In fiscal year 2009, approximately $5.9 million would be used to fund scholarships for both initial and renewal awards. The Coordinating Board also indicates that they would need one additional program technician to administer the program at a cost of $56,498 per year.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION


May 25, 2007

TO:	Honorable Tom Craddick, Speaker of the House, House of Representatives

FROM:	John S. O'Brien, Director, Legislative Budget Board

IN RE:	HB2978 by Morrison (Relating to engineering recruitment programs established by the Texas Higher Education Coordinating Board. ), As Passed 2nd House