LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION Revision 1 May 10, 2011 TO: Honorable Dan Branch, Chair, House Committee on Higher Education FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1729 by Zaffirini (Relating to the Texas Science, Technology, Engineering, and Mathematics (T-STEM) Challenge Scholarship program.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB1729, As Engrossed: a negative impact of ($280,000) 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
Revision 1
May 10, 2011
Revision 1
Revision 1
TO: Honorable Dan Branch, Chair, House Committee on Higher Education FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1729 by Zaffirini (Relating to the Texas Science, Technology, Engineering, and Mathematics (T-STEM) Challenge Scholarship program.), As Engrossed
TO: Honorable Dan Branch, Chair, House Committee on Higher Education
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB1729 by Zaffirini (Relating to the Texas Science, Technology, Engineering, and Mathematics (T-STEM) Challenge Scholarship program.), As Engrossed
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
SB1729 by Zaffirini (Relating to the Texas Science, Technology, Engineering, and Mathematics (T-STEM) Challenge Scholarship program.), As Engrossed
SB1729 by Zaffirini (Relating to the Texas Science, Technology, Engineering, and Mathematics (T-STEM) Challenge Scholarship program.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB1729, As Engrossed: a negative impact of ($280,000) 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 SB1729, As Engrossed: a negative impact of ($280,000) 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 $0 2013 ($280,000) 2014 ($280,000) 2015 ($280,000) 2016 ($280,000)
2012 $0
2013 ($280,000)
2014 ($280,000)
2015 ($280,000)
2016 ($280,000)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2012 $0 2013 ($280,000) 2014 ($280,000) 2015 ($280,000) 2016 ($280,000)
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2012 $0 2013 ($280,000) 2014 ($280,000) 2015 ($280,000) 2016 ($280,000)
2012 $0
2013 ($280,000)
2014 ($280,000)
2015 ($280,000)
2016 ($280,000)
Fiscal Analysis
The bill creates the Texas Science, Technology, Engineering, and Mathematics Challenge Scholarship Program. The program would be administed by the Higher Education Coordinating Board. The bill establishes eligibility requirements for students and institutions. Under provisions of the bill, certain public and private two year institutions would enter into partnerships with businesses and industry to identify local employment needs in STEM fields and provide part-time employment for students enrolled in a STEM program. Under provisions of the bill, subject to available funding, the Board would award scholarships, with at least 50 percent of the amount awarded from private funds.
Methodology
For purposes of this fiscal note, the following information and assumptions were used to calculate an estimate of the cost associated with the program. The Higher Education Coordinating Board provided information that in fall 2010, there were 77 2-year college campuses that reported students with STEM majors. The STEM programs included academic and technical/technical preparation. There were 14,000 students enrolled in technical/technical preparation courses at 60 campuses and 17,000 students enrolled in the academic programs. For purposes of this fiscal note only the technical prepration students were considered. It is further assumed that when other requirements in the bill are taken into account, 2% percent of these students would receive a scholarship. For purposes of this fiscal note it is assumed the scholarship amount would be $2,000 which is comparable to the TEXAS Grant amount at a community college. This would result in a total cost of $560,000 per year. It is assumed that businesses would provide a 50% match resulting in a state cost of $280,000 per year. It is also assumed that a year would be needed to set up arrangements with businesses regarding the program, therefore costs associated with the new program would begin in fiscal year 2013.
For purposes of this fiscal note, the following information and assumptions were used to calculate an estimate of the cost associated with the program. The Higher Education Coordinating Board provided information that in fall 2010, there were 77 2-year college campuses that reported students with STEM majors. The STEM programs included academic and technical/technical preparation. There were 14,000 students enrolled in technical/technical preparation courses at 60 campuses and 17,000 students enrolled in the academic programs. For purposes of this fiscal note only the technical prepration students were considered. It is further assumed that when other requirements in the bill are taken into account, 2% percent of these students would receive a scholarship. For purposes of this fiscal note it is assumed the scholarship amount would be $2,000 which is comparable to the TEXAS Grant amount at a community college. This would result in a total cost of $560,000 per year. It is assumed that businesses would provide a 50% match resulting in a state cost of $280,000 per year. It is also assumed that a year would be needed to set up arrangements with businesses regarding the program, therefore costs associated with the new program would begin in fiscal year 2013.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 781 Higher Education Coordinating Board
781 Higher Education Coordinating Board
LBB Staff: JOB, KK, RT, GO
JOB, KK, RT, GO