LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 20, 2009 TO: Honorable Dan Branch, Chair, House Committee on Higher Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3576 by Christian (Relating to student loan repayment assistance for speech-language pathologists or audiologists employed by a public school or as faculty members of certain graduate programs at public institutions of higher education.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3576, As Introduced: a negative impact of ($918,000) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 20, 2009
TO: Honorable Dan Branch, Chair, House Committee on Higher Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3576 by Christian (Relating to student loan repayment assistance for speech-language pathologists or audiologists employed by a public school or as faculty members of certain graduate programs at public institutions of higher education.), As Introduced
TO: Honorable Dan Branch, Chair, House Committee on Higher Education
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3576 by Christian (Relating to student loan repayment assistance for speech-language pathologists or audiologists employed by a public school or as faculty members of certain graduate programs at public institutions of higher education.), As Introduced
Honorable Dan Branch, Chair, House Committee on Higher Education
Honorable Dan Branch, Chair, House Committee on Higher Education
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB3576 by Christian (Relating to student loan repayment assistance for speech-language pathologists or audiologists employed by a public school or as faculty members of certain graduate programs at public institutions of higher education.), As Introduced
HB3576 by Christian (Relating to student loan repayment assistance for speech-language pathologists or audiologists employed by a public school or as faculty members of certain graduate programs at public institutions of higher education.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3576, As Introduced: a negative impact of ($918,000) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3576, As Introduced: a negative impact of ($918,000) through the biennium ending August 31, 2011.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($306,000) 2011 ($612,000) 2012 ($918,000) 2013 ($1,224,000) 2014 ($1,530,000)
2010 ($306,000)
2011 ($612,000)
2012 ($918,000)
2013 ($1,224,000)
2014 ($1,530,000)
All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 2010 ($306,000) 2011 ($612,000) 2012 ($918,000) 2013 ($1,224,000) 2014 ($1,530,000)
Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 2010 ($306,000) 2011 ($612,000) 2012 ($918,000) 2013 ($1,224,000) 2014 ($1,530,000)
2010 ($306,000)
2011 ($612,000)
2012 ($918,000)
2013 ($1,224,000)
2014 ($1,530,000)
Fiscal Analysis
The bill would create a student loan repayment assistance program for speech-language pathologists or audiologists employed by a public school. The program would be administered by the Higher Education Coordinating Board. Under provisions of the bill, to be eligible for repayment assistance, the speech-language pathologist or audiologist would be required to: (1) apply to the Higher Education Coordinating Board; and (2) have been employed at full time capacity for at least one year by a public school; or (3) have been employed as a full-time faculty member of a communicative disorders program at an institution of higher education. The Board may also provide repayment assistance on a pro rata basis to speech-language pathologists or audiologists who are employed part-time by a public school or institution of higher education. The repayment assistance grants for those who qualify may not exceed five years. The grant amount may not exceed: (1) more than 20 percent of the total principle amount of the student loans; (2) $30,000 for an eligible recipient who has a masters degree, but not a doctoral degree; or (3) $45,000 for an eligible recipient who has a doctoral degree. The Board may provide repayment assistance for any student loan received by a speech-language pathologist or audiologist except for those loans that are in default. Funding for the repayments will come from money that is appropriated to the Board each biennium. The Board may also accept funds through gifts, grants and donations to use for the student loan repayment assistance grants
The bill would create a student loan repayment assistance program for speech-language pathologists or audiologists employed by a public school. The program would be administered by the Higher Education Coordinating Board. Under provisions of the bill, to be eligible for repayment assistance, the speech-language pathologist or audiologist would be required to: (1) apply to the Higher Education Coordinating Board; and (2) have been employed at full time capacity for at least one year by a public school; or (3) have been employed as a full-time faculty member of a communicative disorders program at an institution of higher education. The Board may also provide repayment assistance on a pro rata basis to speech-language pathologists or audiologists who are employed part-time by a public school or institution of higher education.
The repayment assistance grants for those who qualify may not exceed five years. The grant amount may not exceed: (1) more than 20 percent of the total principle amount of the student loans; (2) $30,000 for an eligible recipient who has a masters degree, but not a doctoral degree; or (3) $45,000 for an eligible recipient who has a doctoral degree. The Board may provide repayment assistance for any student loan received by a speech-language pathologist or audiologist except for those loans that are in default. Funding for the repayments will come from money that is appropriated to the Board each biennium. The Board may also accept funds through gifts, grants and donations to use for the student loan repayment assistance grants
Methodology
For purposes of this fiscal note it is assumed that 45 speech-language pathologists and audiologists and two faculty members employed in a communicative disorder program at institutions of higher educations will receive loan repayment assistance in fiscal year 2010. It is also assumed that the annual loan repayment is $6,000 for speech-language pathologists and $18,000 per year for faculty of communicative disorders programs resulting in a total cost of $306,000 in fiscal year 2010. The number of pathologists and audiologist and faculty members receiving loan repayment assistance would increase by the same amount (45 and 2) in the subsequent years increasing to a total of 225 in fiscal year 2014. Any administrative costs associated with the program would be absorbed within existing resources.
For purposes of this fiscal note it is assumed that 45 speech-language pathologists and audiologists and two faculty members employed in a communicative disorder program at institutions of higher educations will receive loan repayment assistance in fiscal year 2010. It is also assumed that the annual loan repayment is $6,000 for speech-language pathologists and $18,000 per year for faculty of communicative disorders programs resulting in a total cost of $306,000 in fiscal year 2010. The number of pathologists and audiologist and faculty members receiving loan repayment assistance would increase by the same amount (45 and 2) in the subsequent years increasing to a total of 225 in fiscal year 2014. Any administrative costs associated with the program would be absorbed within existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
LBB Staff: JOB, GO, KK, RT
JOB, GO, KK, RT