Honorable Donna Campbell, Chair, Senate Committee on Veteran Affairs & Border Security
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB2588 by Phelan (Relating to the award of grants by the Texas Workforce Commission to facilitate the participation of certain veterans and military personnel in apprenticeship training programs.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB2588, As Engrossed: a negative impact of ($600,000) 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
($300,000)
2021
($300,000)
2022
($300,000)
2023
($300,000)
2024
($300,000)
Fiscal Year
Probable (Cost) from General Revenue Fund 1
2020
($300,000)
2021
($300,000)
2022
($300,000)
2023
($300,000)
2024
($300,000)
Fiscal Analysis
The bill would amend the Labor Code relating to the award of grants by the Texas Workforce Commission (TWC) to facilitate the participation of certain veterans and military personnel in apprenticeship training programs.
The bill would require TWC to develop and administer a grant program to nonprofit organizations to recruit or assist veterans or active-duty military service members who are transitioning into civilian employment to participate in an apprenticeship training program. The bill would require TWC to adopt rules for the administration of the provisions of the bill.
The bill would take effect on September 1, 2019.
Methodology
Based on information provided by TWC, it is estimated that implementing the provisions of the bill would result in a cost of $300,000 each fiscal year from General Revenue Funds. TWC assumes that there are three major military installations/cities in Texas and each area would receive one grant of approximately $100,000 each fiscal year. Each grant would fund at least one staffing position and associated administrative costs, including general business costs, marketing materials, and travel costs, to recruit or assist veterans or active-duty military service members to participate in an apprenticeship training program.
Local Government Impact
No fiscal implication to units of local government is anticipated.