83(R) HB 533 - Introduced version

TO:	Honorable John Davis, Chair, House Committee on Economic & Small Business Development

FROM:	Ursula Parks, Director, Legislative Budget Board

IN RE:	HB533 by Lozano (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 HB533, As Introduced: a negative impact of ($891,817) through the biennium ending August 31, 2015.

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
2014	($462,907)
2015	($428,910)
2016	($428,910)
2017	($428,910)
2018	($428,910)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2013
2014	($462,907)	0.5
2015	($428,910)	0.5
2016	($428,910)	0.5
2017	($428,910)	0.5
2018	($428,910)	0.5

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, public technical institutes, 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, 2013.

The bill states that the program is subject to available funding and limits the Department of Agriculture (TDA) to issue no more than four grants each biennia, but does not specify the size of each grant that is contemplated. For the purpose of this analysis, TDA assumed administering a grant program of $400,000 per year. Accordingly, this estimate assumes $800,000 would be provided in grant funding in each fiscal biennium under the Rural Workforce Investment Pilot Program.

It is anticipated that TDA would need 0.5 additional full-time equivalents (FTEs) to assist in the administration of this program. The annual salary for this position would be $21,276, with estimated annual benefits costs of $6,327. This estimate also assumes related travel estimated to be $1,307 in fiscal year 2014 and each subsequent year. This estimate also assumes first year rulemaking costs of $33,997 in fiscal year 2014.

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 ability to provide local matching funds.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION


March 25, 2013