LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 28, 2009

TO:	Honorable Joe Straus, Speaker of the House, House of Representatives
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2169 by Chavez (Relating to the establishment of additional job incentive programs by the Texas Workforce Commission using the skills development fund. ), As Passed 2nd House

Estimated Two-year Net Impact to General Revenue Related Funds for HB2169, As Passed 2nd House: a negative impact of ($2,678,520) 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	($1,326,000)
2011	($1,352,520)
2012	($1,379,570)
2013	($1,407,162)
2014	($1,435,305)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from General Revenue Fund 1
2010	($1,326,000)
2011	($1,352,520)
2012	($1,379,570)
2013	($1,407,162)
2014	($1,435,305)

Fiscal Analysis

The bill would amend the Labor Code relating to the establishment of additional job incentive programs by the Texas Workforce Commission using the skills development fund.

 

The bill would remove the requirement that students demonstrate financial need to qualify for subsidies for industry certification exams provided to students enrolled in a career and technology program that pass an exam and earn a certification for employment in high-demand, high-wage, or high-skill fields. The bill would extend subsidies to any student served through special education who passes a certification examination to qualify for employment. The bill would establish that students would apply to the school district for a subsidy of certification examination costs and would direct that the Commissioner of Education would reimburse school districts for the amount of any qualifying subsidies paid.

 

The bill would establish that the Commissioner of Education, the Commissioner of Higher Education, and the Texas Workforce Commission would determine which fields would be designated as high-demand, high-wage, or high-skill.

 

Based on the analysis of the the Texas Education Agency (TEA) and the Higher Education Coordinating Board, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

 

The provisions of this bill would take effect immediately if passed with the necessary voting margins, or September 1, 2009.

Methodology

According to the analysis by the TEA, recent data show that approximately 25,000 students earned industry certifications by examination in fiscal year 2007, and that approximately 52 percent of students enrolled in career and technology education programs are also identified as economically disadvantaged.  Assuming a 2 percent annual increase in the number of students earning industry certifications by examination, the cost of the expansion of subsidies for industry certification examinations to non-economically disadvantaged students is estimated at $1.33 million in fiscal year 2010, $1.35 million in fiscal year 2011, and increasing to $1.44 million by fiscal year 2014.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

320 Texas Workforce Commission, 701 Central Education Agency, 781 Higher Education Coordinating Board

LBB Staff:

JOB, JRO, MW, NV