LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
April 30, 2009

TO:
Honorable Craig Estes, Chair, Senate Committee on Agriculture & Rural Affairs
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
SB2405 by Zaffirini (Relating to a pilot program to expand access to career and technical education partnerships in rural areas.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB2405, As Introduced: a negative impact of ($800,000) 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.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 ($800,000)
2011 $0
2012 ($800,000)
2013 $0
2014 ($800,000)




Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1
2010 ($800,000)
2011 $0
2012 ($800,000)
2013 $0
2014 ($800,000)

Fiscal Analysis

The bill would amend the Agriculture Code to create the Rural Workforce Investment Pilot Program. This pilot program would develop partnerships in rural areas among school districts, public junior colleges, general academic teaching institutions, and business and industry to provide greater access to career and technical education and industry certification to high school students in rural areas.

 

The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house; otherwise it would take effect September 1, 2009.


Methodology

The bill states that the program is subject to available funding, but does not specify the size of the program that is contemplated. The Department of Agriculture (TDA) indicates that they anticipate issuing up to four grants per fiscal biennium, at an average grant amount of $200,000.  Therefore it is anticipated that $800,000 would be provided in grant funding in each fiscal biennium under the Rural Workforce Investment Pilot Program.

TDA indicates that any administration costs associated with administering the grant program could be absorbed within the agency's existing resources.


Local Government Impact

The bill would allow a "rural area" as defined by the provisions of the bill to submit an application for a grant to participate in the Rural Workforce Investment Pilot Program. A local governmental entity that chose to participate in the program would be required to commit public or private funds to match the grant to be eligible to apply for a grant. The fiscal impact to local governmental entities would vary depending on an entity's decision to participate, and the ability to match the funds of the grant.


Source Agencies:
320 Texas Workforce Commission, 551 Department of Agriculture, 701 Central Education Agency, 781 Higher Education Coordinating Board
LBB Staff:
JOB, SD, ZS, AH, TP