LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 25, 2013 TO: Honorable John Davis, Chair, House Committee on Economic & Small Business Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB533 by Lozano (Relating to a pilot program to expand access to career and technical education partnerships in rural areas.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB533, As Introduced: a negative impact of ($891,817) through the biennium ending August 31, 2015. 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, 83RD LEGISLATIVE REGULAR SESSION
March 25, 2013
TO: Honorable John Davis, Chair, House Committee on Economic & Small Business Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB533 by Lozano (Relating to a pilot program to expand access to career and technical education partnerships in rural areas.), As Introduced
TO: Honorable John Davis, Chair, House Committee on Economic & Small Business Development
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB533 by Lozano (Relating to a pilot program to expand access to career and technical education partnerships in rural areas.), As Introduced
Honorable John Davis, Chair, House Committee on Economic & Small Business Development
Honorable John Davis, Chair, House Committee on Economic & Small Business Development
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB533 by Lozano (Relating to a pilot program to expand access to career and technical education partnerships in rural areas.), As Introduced
HB533 by Lozano (Relating to a pilot program to expand access to career and technical education partnerships in rural areas.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB533, As Introduced: a negative impact of ($891,817) through the biennium ending August 31, 2015. 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 HB533, As Introduced: a negative impact of ($891,817) through the biennium ending August 31, 2015.
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 2014 ($462,907) 2015 ($428,910) 2016 ($428,910) 2017 ($428,910) 2018 ($428,910)
2014 ($462,907)
2015 ($428,910)
2016 ($428,910)
2017 ($428,910)
2018 ($428,910)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2013 2014 ($462,907) 0.5 2015 ($428,910) 0.5 2016 ($428,910) 0.5 2017 ($428,910) 0.5 2018 ($428,910) 0.5
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2013 2014 ($462,907) 0.5 2015 ($428,910) 0.5 2016 ($428,910) 0.5 2017 ($428,910) 0.5 2018 ($428,910) 0.5
2014 ($462,907) 0.5
2015 ($428,910) 0.5
2016 ($428,910) 0.5
2017 ($428,910) 0.5
2018 ($428,910) 0.5
Fiscal Analysis
The bill would amend the Agriculture Code to create the Rural Workforce Investment Pilot Program. This pilot program would develop partnerships in rural areas among school districts, public junior colleges, public technical institutes, general academic teaching institutions, and business and industry to provide greater access to career and technical education and industry certification to high school students in rural areas. The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house; otherwise, it would take effect September 1, 2013.
The bill would amend the Agriculture Code to create the Rural Workforce Investment Pilot Program. This pilot program would develop partnerships in rural areas among school districts, public junior colleges, public technical institutes, general academic teaching institutions, and business and industry to provide greater access to career and technical education and industry certification to high school students in rural areas.
Methodology
The bill states that the program is subject to available funding and limits the Department of Agriculture (TDA) to issue no more than four grants each biennia, but does not specify the size of each grant that is contemplated. For the purpose of this analysis, TDA assumed administering a grant program of $400,000 per year. Accordingly, this estimate assumes $800,000 would be provided in grant funding in each fiscal biennium under the Rural Workforce Investment Pilot Program.It is anticipated that TDA would need 0.5 additional full-time equivalents (FTEs) to assist in the administration of this program. The annual salary for this position would be $21,276, with estimated annual benefits costs of $6,327. This estimate also assumes related travel estimated to be $1,307 in fiscal year 2014 and each subsequent year. This estimate also assumes first year rulemaking costs of $33,997 in fiscal year 2014.
The bill states that the program is subject to available funding and limits the Department of Agriculture (TDA) to issue no more than four grants each biennia, but does not specify the size of each grant that is contemplated. For the purpose of this analysis, TDA assumed administering a grant program of $400,000 per year. Accordingly, this estimate assumes $800,000 would be provided in grant funding in each fiscal biennium under the Rural Workforce Investment Pilot Program.
Local Government Impact
The bill would allow a rural area as defined by the provisions of the bill to submit an application for a grant to participate in the Rural Workforce Investment Pilot Program. A local governmental entity that chose to participate in the program would be required to commit public or private funds to match the grant to be eligible to apply for a grant. The fiscal impact to local governmental entities would vary depending on an entity's decision to participate and ability to provide local matching funds.
Source Agencies: 320 Texas Workforce Commission, 551 Department of Agriculture, 701 Central Education Agency, 781 Higher Education Coordinating Board
320 Texas Workforce Commission, 551 Department of Agriculture, 701 Central Education Agency, 781 Higher Education Coordinating Board
LBB Staff: UP, RB, ZS, JP, KKR
UP, RB, ZS, JP, KKR