LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 31, 2015 TO: Honorable Kel Seliger, Chair, Senate Committee on Higher Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB239 by Schwertner (Relating to student loan repayment assistance for certain mental health professionals.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB239, As Introduced: a negative impact of ($3,183,770) through the biennium ending August 31, 2017. 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, 84TH LEGISLATIVE REGULAR SESSION
March 31, 2015
TO: Honorable Kel Seliger, Chair, Senate Committee on Higher Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB239 by Schwertner (Relating to student loan repayment assistance for certain mental health professionals.), As Introduced
TO: Honorable Kel Seliger, Chair, Senate Committee on Higher Education
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB239 by Schwertner (Relating to student loan repayment assistance for certain mental health professionals.), As Introduced
Honorable Kel Seliger, Chair, Senate Committee on Higher Education
Honorable Kel Seliger, Chair, Senate Committee on Higher Education
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB239 by Schwertner (Relating to student loan repayment assistance for certain mental health professionals.), As Introduced
SB239 by Schwertner (Relating to student loan repayment assistance for certain mental health professionals.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB239, As Introduced: a negative impact of ($3,183,770) through the biennium ending August 31, 2017. 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 SB239, As Introduced: a negative impact of ($3,183,770) through the biennium ending August 31, 2017.
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 2016 ($934,385) 2017 ($2,249,385) 2018 ($4,009,385) 2019 ($6,209,385) 2020 ($8,849,385)
2016 ($934,385)
2017 ($2,249,385)
2018 ($4,009,385)
2019 ($6,209,385)
2020 ($8,849,385)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2015 2016 ($934,385) 1.0 2017 ($2,249,385) 1.0 2018 ($4,009,385) 1.0 2019 ($6,209,385) 1.0 2020 ($8,849,385) 1.0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2015 2016 ($934,385) 1.0 2017 ($2,249,385) 1.0 2018 ($4,009,385) 1.0 2019 ($6,209,385) 1.0 2020 ($8,849,385) 1.0
2016 ($934,385) 1.0
2017 ($2,249,385) 1.0
2018 ($4,009,385) 1.0
2019 ($6,209,385) 1.0
2020 ($8,849,385) 1.0
Fiscal Analysis
Under provisions of the bill, the Higher Education Coordinating Board shall establish a program to provide loan repayment assistance for certain medical health professionals. Repayment assistance may not be received for more than five years, and certain criteria regarding time, amount, and type of mental health service would apply. This criteria includes the maximum amount of repayment assistance which is 10 percent in the first year and increases in five percent increments to 30 percent in the fifth year. Under provisions of the bill, the total amount of repayment assistance received by a mental health professional may not exceed $160,000, for assistance received by a licensed physician; $80,000, for assistance received by a psychologist, a licensed professional counselor, or an advanced practice registered nurse; and $40,000, for assistance received by a licensed clinical social worker. The agency would adopt rules for the program no later than December 1, 2015.
Methodology
For purposes of this fiscal note it is assumed that the Higher Education Coordinating Board would provide loan repayment assistance to eligible mental health professionals beginning in fiscal year 2016.Based on the criteria established in the bill, the Higher Education Coordinating Board estimates 100 medical health professionals would receive loan repayment assistance beginning in fiscal year 2016. The type of professionals and award amount is as follows: 20 psychiatrists at $16,000, 20 psychologists at $8,000, 20 licensed professional counselors at $8,000, 20 advanced practice registered nurses at $8,000 and 20 licensed clinical social workers at $4,000. Based on these assumptions, the 100 awards in fiscal year 2016 would result in a total General Revenue cost of $880,000. The cost for the 100 medical health care providers would increase to $1,320,000 in fiscal year 2017 as the maximum award amount increases from 10 percent to 15 percent. The general revenue costs would increase in fiscal year 2018 through 2020 as the maximum amount of loan repayment assistance increases to 30 percent. The agency has indicated they would need to hire one additional FTE, a Program Technician VI, at a cost of $54,385 for salary and benefits to administer the program.
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, 768 Texas Tech University System Administration, 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, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
LBB Staff: UP, EMu, DEH, GO
UP, EMu, DEH, GO