LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 86TH LEGISLATIVE REGULAR SESSION
 
March 19, 2019

TO:
Honorable Chris Turner, Chair, House Committee on Higher Education
 
FROM:
John McGeady, Assistant Director     Sarah Keyton, Assistant Director
Legislative Budget Board
 
IN RE:
HB2261 by Walle (Relating to the physician education loan repayment program.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2261, As Introduced: an impact of $0 through the biennium ending August 31, 2021.

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
2020 $0
2021 $0
2022 $0
2023 $0
2024 $0




Fiscal Year Probable Savings/(Cost) from
Physician Ed. Loan Repayment
5144
2020 ($2,670,078)
2021 ($2,272,215)
2022 ($4,595,580)
2023 ($5,325,000)
2024 ($5,325,000)

Fiscal Analysis

The bill would amend the Education Code to increase loan repayment assistance through the Physician Education Loan Repayment Program (PELRP) by $5,000 per year. The program is administered by the Higher Education Coordinating Board and recruits and retains physicians in health professional shortage areas.

Methodology

Funds appropriated to the PELRP are from General Revenue Account 5144. The program is supported by a tax on smokeless tobacco that also generates revenue for the General Revenue Fund.

The total amount of loan repayment assistance currently available through the program is $160,000 for four years. The bill would increase the total loan repayment assistance to $180,000. The Higher Education Coordinating Board's estimate assumes that 100 new program participants under the bill would have at least $180,000 in student loan debt. In practice, participants with less than $180,000 in student loan debt would have their award amounts scaled to repay the debt over a period of four years. The costs to GR Account 5144 reflect the amounts over the current level of appropriation that would be needed to allow for the increased award amounts. 

The Comptroller of Public Accounts indicates that sometime after 2024 the unencumbered beginning balance in GR Account 5144 would be expected to be insufficient to fund appropriations and there would be a shift of tobacco tax revenue from General Revenue to GR Account 5144.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 781 Higher Education Coordinating Board
LBB Staff:
WP, JGAn, JQ, BH, GO