LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

May 5, 2025

TO:	Honorable Terry M. Wilson, Chair, House Committee on Higher Education
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB2476 by Simmons (Relating to a grant program for living expenses for certain students enrolled at public institutions of higher education.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2476, As Introduced: a negative impact of ($1,252,000) through the biennium ending August 31, 2027. There will be an additional indeterminate cost to the state dependent on legislative appropriations for the grant program.

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
2026	($806,000)
2027	($446,000)
2028	($446,000)
2029	($446,000)
2030	($446,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2025
2026	($806,000)	5.0
2027	($446,000)	5.0
2028	($446,000)	5.0
2029	($446,000)	5.0
2030	($446,000)	5.0

Fiscal Analysis

The bill would require the Comptroller to establish a grant program to provide for cost of living expenses for homeless students and minors whose disabilities of minority have been removed while enrolled at an institution of higher education. Each institution would be required to assess eligibility of their students and notify the Comptroller of each applicant that is determined as eligible.

Grant awards to each student would be an amount necessary to pay the cost of the student's housing, food, and other living expenses during the student's enrollment in an applicable year, and could only be used for those purposes.

The Comptroller, in consultation with the Texas Higher Education Coordinating Board, would adopt rules as necessary to implement the legislation.

Methodology

It is assumed that the Comptroller would require five additional full-time equivalent (5.0 FTEs) positions to implement the bill. This includes 5.0 Program Specialists IV to establish and maintain the grant program, track all payments made to the individual, and ensure compliance of the records and usage of funds for the proper purpose as outlined by statute or Comptroller rule. The personnel costs associated with the 5.0 FTEs is estimated to be $446,000 in each fiscal year.

Institutions of higher education may incur additional costs associated with providing available staff  for students who live at the dorm during breaks, holidays, and between semesters. Additionally, there could be administrative costs associated with determining eligibility of students for the grant program. It is assumed that these costs could be absorbed using existing resources.

There will be an additional indeterminate cost to the state for the cost of the grants; the cost is  dependent on legislative appropriations for that purpose.

Technology

This analysis assumes that the Comptroller would incur a one-time IT cost of $360,000 in fiscal year 2026 for 2,400 programming hours to develop a new grant system.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College System Administration, 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, 775 Texas Woman's University System, 781 Higher Education Coordinating Board, 783 University of Houston System Administration, 966 Howard College, 978 San Jacinto College

LBB Staff:

JMc, FV, LCO, CSmi, NV