Honorable Angie Chen Button, Chair, House Committee on International Relations & Economic Development
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB755 by Fierro (Relating to consumer information regarding career schools and colleges.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB755, As Introduced : a negative impact of ($148,373) through the biennium ending August 31, 2023.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2022
($114,911)
2023
($33,462)
2024
($33,462)
2025
($33,462)
2026
($33,462)
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from Career Schools and Colleges 8013
Change in Number of State Employees from FY 2021
2022
($114,911)
0.9
2023
($33,462)
0.3
2024
($33,462)
0.3
2025
($33,462)
0.3
2026
($33,462)
0.3
Fiscal Analysis
The bill would amend Chapter 132, Education Code to require the Texas Workforce Commission (TWC) to include in its searchable database of licensed career schools and colleges the student loan default rates and average per-student student loan debt no later than January 1, 2022. The bill would require career schools to provide student loan data from this database to prospective students.
Methodology
According to TWC, implementing the provisions of the bill would require an additional 0.6 Information Technology full-time equivalents (FTEs) in fiscal year 2022 to develop the required database. Additionally, the agency anticipates it would need another 0.3 Program FTEs to provide continued monitoring of the data and data entry by the career schools.
Based on information provided by TWC, the 0.9 FTEs would require $72,575 in salaries and $24,690 in benefits and payroll contributions in fiscal year 2022 in General Revenue Funds. In fiscal year 2023 and beyond, the 0.3 FTEs would incur an annual cost of $21,707 in salaries and $7,385 in benefits and payroll contributions to the General Revenue Fund. Additional costs to the General Revenue Fund for other operating expenses, rent, utilities, consumable supplies, and indirect costs for these FTEs are estimated to be $17,646 in fiscal year 2022 and $4,370 in fiscal year 2023 and beyond.
Based on information provided by TWC, it is estimated that implementing the provisions of the bill would result in a total cost of $114,911 in fiscal year 2022 and $33,462 each fiscal year thereafter from General Revenue Funds.
Technology
TWC anticipates a five-year technology cost of $1,113 for personal laptop and Office 365 lease.
Local Government Impact
No fiscal implication to units of local government is anticipated.