Honorable Larry Taylor, Chair, Senate Committee on Education
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB508 by Miles (Relating to the development of a statewide online education and career advising tool and the establishment of a grant program to reimburse private employers for paid internships provided to certain public school students in career and technology education programs.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB508, As Introduced: a negative impact of ($5,452,061) 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
($2,659,871)
2021
($2,792,190)
2022
($2,588,311)
2023
($2,588,311)
2024
($2,588,311)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from Federal Education Fund 148
Change in Number of State Employees from FY 2019
2020
($2,659,871)
($7,965,675)
5.0
2021
($2,792,190)
($5,951,275)
5.0
2022
($2,588,311)
($5,951,275)
5.0
2023
($2,588,311)
($5,951,275)
5.0
2024
($2,588,311)
($5,951,275)
5.0
Fiscal Analysis
The bill would require the Texas Education Agency (TEA), subject to the availability of federal funding for this purpose, to develop and implement a statewide online education and career advising tool to assist children postsecondary and career plans.
The bill would require the Commissioner of Education to establish a competitive grant program to school districts and open-enrollment charter schools to provide for the reimbursement of private entities for all or part of the cost of providing a paid internship or similar program to a student participating in a career and technology education program in the district or school. The bill would limit the grants to a biennial total of $5 million.
Methodology
TEA estimates that four additional full-time equivalents (FTEs) would be required to develop and implement the statewide online education and career advising tool at an estimated cost of $0.5 million per fiscal year including salary, benefits, and other operating expenses. In addition to the FTEs, TEA also estimates that professional services would be required to: 1) identify or develop a career exploration tool and make the tool available to all middle and high school students; 2) implement the course mapping necessary; and 3) develop a tool that provides information on articulation agreements. These professional services are estimated to cost $7.5 million in fiscal year 2020 and $5.5 million in subsequent years.
TEA assumed the total awards provided for reimbursement to private entities for costs related to internships would be $2.5 million annually. TEA estimated that one additional FTE would be required to implement program at an estimated cost of $0.1 million per fiscal year including salary, benefits, and other operating expenses.
Technology
TEA estimates costs of $67,960 in fiscal year 2020 and $203,879 in fiscal year 2021 related to updating the agency's Texas Student Data System to implement the provisions of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
320 Texas Workforce Commission, 701 Texas Education Agency, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration