LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
 
March 28, 2017

TO:
Honorable J. M. Lozano, Chair, House Committee on Higher Education
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB2994 by Ashby (Relating to workforce continuing education offered by public junior colleges.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2994, As Introduced: an impact of $0 through the biennium ending August 31, 2019. However, beginning in 2020-21 there would be an estimated negative impact of ($26,077,952).



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2018 $0
2019 $0
2020 ($13,038,976)
2021 ($13,038,976)
2022 ($13,038,976)




Fiscal Year Probable (Cost) from
General Revenue Fund
1
2018 $0
2019 $0
2020 ($13,038,976)
2021 ($13,038,976)
2022 ($13,038,976)

Fiscal Analysis

The bill would amend the Education Code to allow contact hours attributable to the enrollment of a student in a workforce continuing education course to be included in formula funding. Currently, these hours are not included in formula funding. This assumed cost to General Revenue would not be seen until at least fiscal year 2020, as formula funding is provided to institutions based on student data prior to the biennium to be funded. Under the provisions of the bill, contact hours earned by students who are not considered an adult would be eligible for formula funding.

The bill would also amend the Education Code to allow a public community college to waive all or part of the tuition and fees charged for a workforce continuing education course for certain students, if all or a portion of the costs are covered by local entities, or if the course is taught in a federal correctional facility. The contact hours earned by students whose tuition and fees are waived would be eligible for formula funding.

Methodology

The Texas Higher Education Coordinating Board (THECB) estimates an additional 1.6 million contact hours per semester would be eligible for formula funding. Applying the current annual contact hour rate of $2.69 to the semesters that continuing education courses are offered results in an estimated annual formula cost of $13.0 million in General Revenue.

Local Government Impact

Based on information provided by a sample of community colleges, the increased contact hours available for funding under the provisions of the bill could result in an increase in formula funding. However, without knowing which programs would be offered under the expanded definition for potential students, these fiscal implications of the bill are unknown at this time.


Source Agencies:
781 Higher Education Coordinating Board
LBB Staff:
UP, THo, DEH, ESC