81(R) SB 816 - Engrossed version

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010	($17,710)
2011	($68,131)
2012	($56,957)
2013	($5,056,957)
2014	($10,056,957)

Fiscal Year	Probable Savings/(Cost) from GENERAL REVENUE FUND 1
2010	($17,710)
2011	($68,131)
2012	($56,957)
2013	($5,056,957)
2014	($10,056,957)

Fiscal Year	Change in Number of State Employees from FY 2009
2010	0.0
2011	1.0
2012	1.0
2013	1.0
2014	1.0

Fiscal Analysis

The bill would create the Texas Teach Corps Student Loan Repayment Assistance Program, administered by the Higher Education Coordinating Board, for eligible students who agree to teach in public schools that have teacher shortages in math and science. Under provisions of the bill, not more than 4,000 eligible persons may be awarded loan repayment assistance in any one year, but beginning in the 2012-13 academic year, not more than 1,000 eligible persons may receive loans. The number of eligible persons would increase by a 1,000 each academic year.

Subject to the availablity of funds, the amount of an assistance payment provided under the bill in any year could not exceed $5,000. Except as provided for the bill, for the first school year of employment and each following consecutive school year of employment, not to exceed four years, the Higher Education Coordinating Board may provide assistance for the repayment of a portion of an eligible person's eligible loans.

The bill would create the mathematics and science teacher investment fund. The fund is a dedicated account in the general revenue fund and consists of appropriations of money to the fund by the legislature; gifts, grants, and other donations received for the fund; and interest and other earnings from the investment of the fund. The fund could only be used to provide repayment assistance for the repayment of eligible loans as specified in the bill.

Under provisions of the bill, the Higher Education Coordinating Board would begin providing loan repayment assistance for eligible persons teaching in the 2012-13 school year.

Methodology

For purposes of this fiscal note, the Higher Education Coordinating Board assumed that they will begin receiving applications from eligible juniors beginning in fiscal year 2011 and that these juniors will continue to meet all requirements through graduation in fiscal year 2012 and the service period ending in fiscal year 2013. It is also assumed the amount of loans would be $5,000 and the number of loans awarded would be 1,000 in fiscal year 2013, and 2,000 in fiscal year 2014. These amounts could be less depending on the tuition and fees covered by the loans and how many students take advantage of the program.

The remaining costs include an account representative that would be hired at a total salary and benefit costs of $68,131in fiscal year 2011 and $56,957 in fiscal year 2012 and subsequent years and one time technology costs for custom programming to add a new loan type with unique characteristic to the Higher Education Coordinating Board's student loan software system (in fiscal year 2010 only).

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION


April 29, 2009

TO:	Honorable Dan Branch, Chair, House Committee on Higher Education

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

IN RE:	SB816 by Patrick, Dan (Relating to the Texas Teach Corps Student Loan Repayment Assistance Program for undergraduate students who agree to teach in school districts in this state that have shortages of teachers in mathematics or science.), As Engrossed