LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
Revision 1
 
April 13, 2007

TO:
Honorable Geanie Morrison, Chair, House Committee on Higher Education
 
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 Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2978, As Introduced: a negative impact of ($10,000,000) 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 ($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.  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.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
LBB Staff:
JOB, MN, RT, GO