LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 28, 2009 TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1935 by Villarreal (Relating to the establishment of the Jobs and Education for Texans (JET) Grant Program to support adult and postsecondary education and workforce development.), As Passed 2nd House Estimated Two-year Net Impact to General Revenue Related Funds for HB1935, As Passed 2nd House: a negative impact of ($35,000,000) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 28, 2009
TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1935 by Villarreal (Relating to the establishment of the Jobs and Education for Texans (JET) Grant Program to support adult and postsecondary education and workforce development.), As Passed 2nd House
TO: Honorable Joe Straus, Speaker of the House, House of Representatives
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB1935 by Villarreal (Relating to the establishment of the Jobs and Education for Texans (JET) Grant Program to support adult and postsecondary education and workforce development.), As Passed 2nd House
Honorable Joe Straus, Speaker of the House, House of Representatives
Honorable Joe Straus, Speaker of the House, House of Representatives
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB1935 by Villarreal (Relating to the establishment of the Jobs and Education for Texans (JET) Grant Program to support adult and postsecondary education and workforce development.), As Passed 2nd House
HB1935 by Villarreal (Relating to the establishment of the Jobs and Education for Texans (JET) Grant Program to support adult and postsecondary education and workforce development.), As Passed 2nd House
Estimated Two-year Net Impact to General Revenue Related Funds for HB1935, As Passed 2nd House: a negative impact of ($35,000,000) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1935, As Passed 2nd House: a negative impact of ($35,000,000) through the biennium ending August 31, 2011.
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 2010 ($17,500,000) 2011 ($17,500,000) 2012 ($17,500,000) 2013 ($17,500,000) 2014 ($17,500,000)
2010 ($17,500,000)
2011 ($17,500,000)
2012 ($17,500,000)
2013 ($17,500,000)
2014 ($17,500,000)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 ($17,500,000) 2011 ($17,500,000) 2012 ($17,500,000) 2013 ($17,500,000) 2014 ($17,500,000)
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 ($17,500,000) 2011 ($17,500,000) 2012 ($17,500,000) 2013 ($17,500,000) 2014 ($17,500,000)
2010 ($17,500,000)
2011 ($17,500,000)
2012 ($17,500,000)
2013 ($17,500,000)
2014 ($17,500,000)
Fiscal Analysis
The bill would amend the Government Code and create the Jobs and Education for Texans Fund and provide that the Comptroller of Public Accounts (CPA) establish and administer the Jobs and Education for Texans (JET) Grant program to provide grants to public junior colleges and public technical institutes, and would establish and administer the GR Dedicated AccountJobs and Education for Texans (JET) Fund, which could receive legislative appropriations, interest earnings, gifts, grants, and donations from public and private sources for facilitating this program. The bill would authorize the Comptroller to award grants for innovative and successful programs, grants for career and technical education programs, and scholarships for public junior college or public technical institute students. In addition, the bill would create an advisory board to assist the CPA in administering the program and provide that the CPA conduct a feasibility study. The bill would also amend the Government Code relating to the establishment and funding of a green job skills training program to be administered by the Texas Workforce Commission (TWC). The bill creates the Texas Green Job Skills Development Fund which is an account in the General Revenue Fund. The bill states that the account is composed of legislative appropriations, gifts, grants, donations, matching funds and other money required by law to be deposited in the account. The bill would direct TWC to establish a green job skills grant program to award grants for the implementation, expansion and operation of training programs. In addition, the bill would require the Texas Education Agency, with assistance from the Health and Human Services Commission (HHSC) to develop a comprehensive transition and employment manual for students and parents with updates every two years. The TEA may contract with a private entity to prepare the manual. In addition, the bill would require the TEA to develop a summary document of the manual. Furthermore, the bill would amend the Government Code, regarding historically underutilized and small businesses. The bill would add "veterans service agencies" to the list of business concerns that are designated as a small business for the purpose of state contracting. It is assumed that any additional costs associated with implementation of the bill could be absorbed within existing state resources.
The bill would amend the Government Code and create the Jobs and Education for Texans Fund and provide that the Comptroller of Public Accounts (CPA) establish and administer the Jobs and Education for Texans (JET) Grant program to provide grants to public junior colleges and public technical institutes, and would establish and administer the GR Dedicated AccountJobs and Education for Texans (JET) Fund, which could receive legislative appropriations, interest earnings, gifts, grants, and donations from public and private sources for facilitating this program. The bill would authorize the Comptroller to award grants for innovative and successful programs, grants for career and technical education programs, and scholarships for public junior college or public technical institute students. In addition, the bill would create an advisory board to assist the CPA in administering the program and provide that the CPA conduct a feasibility study.
The bill would also amend the Government Code relating to the establishment and funding of a green job skills training program to be administered by the Texas Workforce Commission (TWC). The bill creates the Texas Green Job Skills Development Fund which is an account in the General Revenue Fund. The bill states that the account is composed of legislative appropriations, gifts, grants, donations, matching funds and other money required by law to be deposited in the account. The bill would direct TWC to establish a green job skills grant program to award grants for the implementation, expansion and operation of training programs. In addition, the bill would require the Texas Education Agency, with assistance from the Health and Human Services Commission (HHSC) to develop a comprehensive transition and employment manual for students and parents with updates every two years. The TEA may contract with a private entity to prepare the manual. In addition, the bill would require the TEA to develop a summary document of the manual.
Furthermore, the bill would amend the Government Code, regarding historically underutilized and small businesses. The bill would add "veterans service agencies" to the list of business concerns that are designated as a small business for the purpose of state contracting. It is assumed that any additional costs associated with implementation of the bill could be absorbed within existing state resources.
Methodology
For purposes of this fiscal note it is assumed that the legislature would appropriate, in the General Appropriations Act, $12,500,000 per year for the Jobs and Education for Texans Grant program. Any costs associated with administration of the program, creation of the advisory board, and conducting the feasibility study could be absorbed within existing resources. This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature. The bill requires that TWC establish a green jobs skills training program, provided that funding is appropriated, but does not specify the size of the program that is contemplated. TWC assumes an initial program size in the range of $5 million each fiscal year ($25 million over a five year period) and three additional FTEs would be required each fiscal year (3 Program Specialists in Salary Group B11 at $57,000 each year) to implement the provisions of this bill. TWC estimates costs for salaries at $171,000 each fiscal year, totaling $855,000 for the five year period. TWC also estimates benefits at $48,855 each year totaling $244,275 for the five-year period. TWC estimates other operating expenses for personal computers, modular workstations and chairs, installation of data cable, installation of phone lines, utilities, phone service, maintenance and supplies are estimated at $26,328 for FY 2010 and $6,105 for each year thereafter totaling $50,748 for the five-year period. The agency estimates indirect and administrative support costs of $34,200 each year totaling $171,000 for the five-year period. TEA indicates that they expect no significant costs associated with the development of the Performance-Based Monitoring Analysis System (PBMAS) indicator regarding the preparation of students enrolled in special education programs to transition to life outside the public school system.TEA estimates costs of $345,000 in 2010 to develop and produce an English and Spanish language version of the comprehensive transition and employment manual and summary document and $172,500 in 2011 and $172,500 in every other year for manual and summary document updates. The agency expects that these costs could be absorbed by federal funds without a significant impact to agency operations or programs. According to the analysis provided by the Comptroller, this legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either within or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
For purposes of this fiscal note it is assumed that the legislature would appropriate, in the General Appropriations Act, $12,500,000 per year for the Jobs and Education for Texans Grant program. Any costs associated with administration of the program, creation of the advisory board, and conducting the feasibility study could be absorbed within existing resources.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
The bill requires that TWC establish a green jobs skills training program, provided that funding is appropriated, but does not specify the size of the program that is contemplated. TWC assumes an initial program size in the range of $5 million each fiscal year ($25 million over a five year period) and three additional FTEs would be required each fiscal year (3 Program Specialists in Salary Group B11 at $57,000 each year) to implement the provisions of this bill. TWC estimates costs for salaries at $171,000 each fiscal year, totaling $855,000 for the five year period. TWC also estimates benefits at $48,855 each year totaling $244,275 for the five-year period.
TWC estimates other operating expenses for personal computers, modular workstations and chairs, installation of data cable, installation of phone lines, utilities, phone service, maintenance and supplies are estimated at $26,328 for FY 2010 and $6,105 for each year thereafter totaling $50,748 for the five-year period. The agency estimates indirect and administrative support costs of $34,200 each year totaling $171,000 for the five-year period.
TEA indicates that they expect no significant costs associated with the development of the Performance-Based Monitoring Analysis System (PBMAS) indicator regarding the preparation of students enrolled in special education programs to transition to life outside the public school system.TEA estimates costs of $345,000 in 2010 to develop and produce an English and Spanish language version of the comprehensive transition and employment manual and summary document and $172,500 in 2011 and $172,500 in every other year for manual and summary document updates. The agency expects that these costs could be absorbed by federal funds without a significant impact to agency operations or programs.
According to the analysis provided by the Comptroller, this legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either within or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Local Government Impact
School districts would incur additional transition planning costs due to expansion of the requirementto initiate transition planning for an increased number of students receiving special education. TheTexas Education Agency indicates that approximately 80,000 students ages 14 and 15 currentlyreceive special education services.Administrative rules that were in place until November 2007 required transition planning to begin atage 14. As a result, it is possible that some transition planning has already occurred for a portion ofcurrent 15-year-old special education students. In addition, federal regulations permit transitionplanning to begin earlier than age 16 when appropriate. Based on these circumstances and anecdotalinformation, it is reasonable to assume that the practice of transition planning for students youngerthan age 16 is not uncommon among districts. However, additional local costs would be anticipatedfor districts that are not currently conducting transition planning at age 14 for all or a portion ofstudents. Additional costs associated with plan development, including interaction with localrepresentatives of state agencies providing adult services and processes to obtain and documentparental consent would be expected.
School districts would incur additional transition planning costs due to expansion of the requirementto initiate transition planning for an increased number of students receiving special education. TheTexas Education Agency indicates that approximately 80,000 students ages 14 and 15 currentlyreceive special education services.
Source Agencies: 304 Comptroller of Public Accounts, 781 Higher Education Coordinating Board
304 Comptroller of Public Accounts, 781 Higher Education Coordinating Board
LBB Staff: JOB, KK, JM, JRO, SD, RT, GO
JOB, KK, JM, JRO, SD, RT, GO