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LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
March 29, 2021
TO:
Honorable Harold V. Dutton, Jr., Chair, House Committee on Public Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3591 by Jetton (Relating to the creation of a high-speed Internet access grant program to facilitate instruction and learning for public school students.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3591, As Introduced : a negative impact of ($280,639,184) through the biennium ending August 31, 2023.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2022
($280,325,592)
2023
($313,592)
2024
($237,241)
2025
($237,241)
2026
($237,241)
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2021
2022
($280,325,592)
3.0
2023
($313,592)
3.0
2024
($237,241)
2.0
2025
($237,241)
2.0
2026
($237,241)
2.0
Fiscal Analysis
The bill would require the Texas Education Agency to establish a program to provide grants to local education agencies for the purposes of providing high-speed Internet service to facilitate instruction and learning for students. If funds are not appropriated by the Legislature for the program, the commissioner could use gifts, grants, and donations from any public or private source, including from the federal government, to implement the program.
Methodology
According to the Texas Education Agency, the grant program established by the bill would require $280.0 million in funding in fiscal year 2022. The agency's estimate assumes that the program would be able to cover the cost of addressing the high-speed Internet connectivity needs of all economically disadvantaged households that do not currently have high speed broadband but do have access in their communities. The figure is based on the agency's estimated cost to serve 1.5 million households that have an economically disadvantaged student that have at least two providers currently serving their area. The agency assumes that the funds would be front-loaded in fiscal year 2022.
The agency estimates that 2.0 FTEs would be required in the 2022-23 biennium to implement the bill, and 1.0 FTE in subsequent years. These grant coordinators would review applications, manage grant funds, prepare reports, and perform other tasks related to managing the program.
Technology
The agency would require 1.0 information technology FTE who would provide consultative services and technical assistance. The agency also projects that a $30,000 would be required for a professional services contract to provide technical assistance to LEAs.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.