LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 20, 2009

TO:	Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB1935 by Villarreal (Relating to the establishment of the Jobs and Education for Texans (JET) Grant Program to support adult and postsecondary education and workforce development.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB1935, As Engrossed: a negative impact of ($25,000,000) through the biennium ending August 31, 2011.

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
2010	($12,500,000)
2011	($12,500,000)
2012	($12,500,000)
2013	($12,500,000)
2014	($12,500,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1
2010	($12,500,000)
2011	($12,500,000)
2012	($12,500,000)
2013	($12,500,000)
2014	($12,500,000)

Fiscal Analysis

The bill would amend statute and create the Jobs and Education for Texans Fund and provide that the Comptroller of Public Accounts (CPA) establish and administer the Jobs and Education for Texans (JET) Grant program to provide grants to public junior colleges and public technical institutes, and would establish and administer the GR Dedicated Account—Jobs and Education for Texans (JET) Fund, which could receive legislative appropriations, interest earnings, gifts, grants, and donations from public and private sources for facilitating this program. The bill would authorize the Comptroller to award grants for innovative and successful programs, grants for career and technical education programs, and scholarships for public junior college or public technical institute students. In addition, the bill would create an advisory board to assist the CPA in administering the program and provide that the CPA conduct a feasibility study.

Methodology

For purposes of this fiscal note it is assumed that the legislature would appropriate $12,500,000 per year for the Jobs and Education for Texans Grant program. Any costs associated with administration of the program, creation of the advisory board, and conducting the feasibility study could be absorbed within existing resources.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 781 Higher Education Coordinating Board

LBB Staff:

JOB, KK, JM, JRO, SD, RT, GO