LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 4, 2011 TO: Honorable Dan Branch, Chair, House Committee on Higher Education FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB991 by Castro (Relating to authorization by the Texas Higher Education Coordinating Board for certain public junior colleges to offer baccalaureate degree programs.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB991, As Introduced: a negative impact of ($10,000,000) through the biennium ending August 31, 2013. 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, 82ND LEGISLATIVE REGULAR SESSION
May 4, 2011
TO: Honorable Dan Branch, Chair, House Committee on Higher Education FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB991 by Castro (Relating to authorization by the Texas Higher Education Coordinating Board for certain public junior colleges to offer baccalaureate degree programs.), As Introduced
TO: Honorable Dan Branch, Chair, House Committee on Higher Education
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB991 by Castro (Relating to authorization by the Texas Higher Education Coordinating Board for certain public junior colleges to offer baccalaureate degree programs.), 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
HB991 by Castro (Relating to authorization by the Texas Higher Education Coordinating Board for certain public junior colleges to offer baccalaureate degree programs.), As Introduced
HB991 by Castro (Relating to authorization by the Texas Higher Education Coordinating Board for certain public junior colleges to offer baccalaureate degree programs.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB991, As Introduced: a negative impact of ($10,000,000) through the biennium ending August 31, 2013. 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 HB991, As Introduced: a negative impact of ($10,000,000) through the biennium ending August 31, 2013.
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 2012 ($5,000,000) 2013 ($5,000,000) 2014 ($2,551,314) 2015 ($551,314) 2016 ($551,314)
2012 ($5,000,000)
2013 ($5,000,000)
2014 ($2,551,314)
2015 ($551,314)
2016 ($551,314)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2012 ($5,000,000) 2013 ($5,000,000) 2014 ($2,551,314) 2015 ($551,314) 2016 ($551,314)
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2012 ($5,000,000) 2013 ($5,000,000) 2014 ($2,551,314) 2015 ($551,314) 2016 ($551,314)
2012 ($5,000,000)
2013 ($5,000,000)
2014 ($2,551,314)
2015 ($551,314)
2016 ($551,314)
Fiscal Analysis
The bill would direct the Higher Education Coordinating Board to authorize the establishment of baccalureate degree programs at those community college districts offering a degree program in fire science.
Methodology
The three community colleges that participated in the original Bachelor of Applied Technology pilot program each received $1.0 million in start up funding in fiscal years 2006 and 2007, as well as $200,000 in special item appropriations in fiscal year 2008. Based on this fiscal precedent, the Coordinating Board uses these cost assumptions: 1) Each of the 10 districts made eligible for baccalaureate programs per the eligibility criterion of the bill would opt to offer a baccalaureate degree program, for a total of 10 new baccaualreate degree programs. 2) The same level of startup funding that was provided to the pilot institutions would be made available to the 10 new programs; 3) Each affected district would be eligible for formula funding at the university upper division level, with an assumption of 15 students. The annual cost based on these assumptions is as follows: FY 2012: Start up funding = $5,000,000 FY 2013: Start up funding = $5,000,000 FY 2014: Start up funding = $2,551,314 FY 2014: Formula funding for upper division courses identified as nursing for 30 semester credit hours each for 15 upper division students = $551,314 FY 2015: Formula funding for upper division courses = $551,314 FY 2016: Formula funding for upper division courses = $551,314
The three community colleges that participated in the original Bachelor of Applied Technology pilot program each received $1.0 million in start up funding in fiscal years 2006 and 2007, as well as $200,000 in special item appropriations in fiscal year 2008.
Based on this fiscal precedent, the Coordinating Board uses these cost assumptions:
1) Each of the 10 districts made eligible for baccalaureate programs per the eligibility criterion of the bill would opt to offer a baccalaureate degree program, for a total of 10 new baccaualreate degree programs.
2) The same level of startup funding that was provided to the pilot institutions would be made available to the 10 new programs;
3) Each affected district would be eligible for formula funding at the university upper division level, with an assumption of 15 students.
The annual cost based on these assumptions is as follows:
FY 2012: Start up funding = $5,000,000
FY 2013: Start up funding = $5,000,000
FY 2014: Start up funding = $2,551,314
FY 2014: Formula funding for upper division courses identified as nursing for 30 semester credit hours each for 15 upper division students = $551,314
FY 2015: Formula funding for upper division courses = $551,314
FY 2016: Formula funding for upper division courses = $551,314
Local Government Impact
A community college wishing to offer a baccalaureate degree would have to be reaccredited by the Southern Association of Colleges and Schools as a Level II degree-granting institution. This reaccreditation process could be human and fiscal resource intensive.
Source Agencies: 781 Higher Education Coordinating Board
781 Higher Education Coordinating Board
LBB Staff: JOB, JAW, KK, RT
JOB, JAW, KK, RT