LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
May 15, 2009

TO:
Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2425 by Morrison (Relating to engineering recruitment programs at public or private institutions of higher education and to certain degree programs at public junior colleges.), As Engrossed



Estimated Two-year Net Impact to General Revenue Related Funds for HB2425, As Engrossed: a negative impact of ($500,000) through the biennium ending August 31, 2011.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 ($250,000)
2011 ($250,000)
2012 ($165,000)
2013 ($165,000)
2014 ($165,000)




Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1
2010 ($250,000)
2011 ($250,000)
2012 ($165,000)
2013 ($165,000)
2014 ($165,000)

Fiscal Analysis

The bill would allow private and independent institutions of higher education to participate in the enginnering recruitment program administered by the Higher Education Coordinating Board. The program provides funding for one-week summer programs designed to expose middle and high school students to math, science and engineering concepts and engineering scholarships.

The bill would direct the Texas Higher Education Coordinating Board (THECB) to authorize the creation of one  Bachelor of Applied Technology (B.A.T.) degree program at an unspecified community college district, provided the program is in the field of applied science or applied technology, or if the district currently offers an existing B.A.T. program.


Methodology

Provisions of the bill relating to the engineering recruitment program would not have a significant impact to the State.

The bill would not require a state contribution to fund the B.A.T. program authorized by the bill.

However, in the past, the state has provided two sorts of support for the three existing pilot B.A.T. programs: start-up funding and formula funding. 

Start-up Funding:  Assuming $0.25 million in start-up funding is provided by the state in the fiscal year 2010-11 biennium, the start-up cost for the single new B.A.T. program would total $0.25 million per year.

Formula Funding:   Using current formula contribution levels for the three existing B.A.T. programs (averaging about $165,000 per year per district) as an estimated measure of the annual formula contribution cost for the new B.A.T. program, the formula funding cost would be about $165,000 per year, starting in fiscal year 2012.


Local Government Impact

If a local community college district is authorized to offer a new BAT program, the district would, unless the state provides assistance, bear the initial costs of starting up the new program, until such a time when the state may provide formula contributions for the new program.


Source Agencies:
781 Higher Education Coordinating Board
LBB Staff:
JOB, KK, GO, RT, JAW