Honorable Brandon Creighton, Chair, Senate Committee on Higher Education
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB2300 by Powell (relating to student loan repayment assistance for certain nurses employed by a long-term care facility.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB2300, Committee Report 1st House, Substituted: a negative impact of ($18,266,260) through the biennium ending August 31, 2021.
The Texas Higher Education Coordinating Board is required to provide assistance in the repayment of eligible student loans for eligible nurses as provided by this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the board may, but is not required to, provide assistance in the repayment of eligible student loans for eligible nurses as provided by this Act using other appropriations available for that purpose.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
($6,179,501)
2021
($12,086,759)
2022
($18,086,759)
2023
($24,086,759)
2024
($30,086,759)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
2020
($6,179,501)
2021
($12,086,759)
2022
($18,086,759)
2023
($24,086,759)
2024
($30,086,759)
Fiscal Year
Change in Number of State Employees from FY 2019
2020
1.5
2021
1.5
2022
1.5
2023
1.5
2024
1.5
Fiscal Analysis
The bill would create a student loan repayment assistance program for certain nurses employed by a long-term care facility. The program would be administered by the Higher Education Coordinating Board. Under provisions of the bill, a qualified nurse may receive loan repayment assistance for not more than five years.
Methodology
The Board of Nursing reports that as of June, 2018, 14,122 nurses are employed by nursing homes or extended care facilities. The Higher Education Coordinating Board estimates that 1,000 nurses would enroll in the program each year and would receive loan repayment awards of $6,000 per year beginning in fiscal year 2020. Based on these assumptions, the General Revenue cost for fiscal year 2020 is $6,000,000. The General Revenue costs would increase in fiscal year 2021 through 2024 as new cohorts of nurses are added to the program.
The Higher Education Coordinating Board indicates they would need to hire a contractor in fiscal year 2020 to do the programming for the new loan program at an estimated one-time cost of $84,375. The Higher Education Coordinating Board indicates they would need to hire 1.5 additional loan representatives to administer the program at an additional cost for salary and benefits of $70,603 per year. Technology and other costs associated with the program are estimated at $24,523 in fiscal year 2020 and $16,156 beginning in fiscal year 2021.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
781 Higher Education Coordinating Board, 507 Texas Board of Nursing