LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 15, 2017 TO: Honorable Kel Seliger, Chair, Senate Committee on Higher Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2994 by Ashby (Relating to workforce continuing education offered by public junior colleges.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB2994, As Engrossed: an impact of $0 through the biennium ending August 31, 2019. However, beginning in 2020-21 there would be an estimated negative impact of ($26,077,952).
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
May 15, 2017
TO: Honorable Kel Seliger, Chair, Senate Committee on Higher Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2994 by Ashby (Relating to workforce continuing education offered by public junior colleges.), As Engrossed
TO: Honorable Kel Seliger, Chair, Senate Committee on Higher Education
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2994 by Ashby (Relating to workforce continuing education offered by public junior colleges.), As Engrossed
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
HB2994 by Ashby (Relating to workforce continuing education offered by public junior colleges.), As Engrossed
HB2994 by Ashby (Relating to workforce continuing education offered by public junior colleges.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB2994, As Engrossed: an impact of $0 through the biennium ending August 31, 2019. However, beginning in 2020-21 there would be an estimated negative impact of ($26,077,952).
Estimated Two-year Net Impact to General Revenue Related Funds for HB2994, As Engrossed: an impact of $0 through the biennium ending August 31, 2019. However, beginning in 2020-21 there would be an estimated negative impact of ($26,077,952).
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2018 $0 2019 $0 2020 ($13,038,976) 2021 ($13,038,976) 2022 ($13,038,976)
2018 $0
2019 $0
2020 ($13,038,976)
2021 ($13,038,976)
2022 ($13,038,976)
All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 2018 $0 2019 $0 2020 ($13,038,976) 2021 ($13,038,976) 2022 ($13,038,976)
Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 2018 $0 2019 $0 2020 ($13,038,976) 2021 ($13,038,976) 2022 ($13,038,976)
2018 $0
2019 $0
2020 ($13,038,976)
2021 ($13,038,976)
2022 ($13,038,976)
Fiscal Analysis
The bill would amend the Education Code to allow contact hours attributable to the enrollment of a student in a workforce continuing education course to be included in formula funding. Currently, these hours are not included in formula funding. This assumed cost to General Revenue would not be seen until at least fiscal year 2020, as formula funding is provided to institutions based on student data prior to the biennium to be funded. Under the provisions of the bill, contact hours earned by students who are not considered an adult would be eligible for formula funding.The bill would also amend the Education Code to allow a public community college to waive all or part of the tuition and fees charged for a workforce continuing education course for certain students, if all or a portion of the costs are covered by local entities, or if the course is taught in a federal correctional facility. The contact hours earned by students whose tuition and fees are waived would be eligible for formula funding.
Methodology
The Texas Higher Education Coordinating Board (THECB) estimates an additional 1.6 million contact hours per semester would be eligible for formula funding. Applying the current annual contact hour rate of $2.69 to the semesters that continuing education courses are offered results in an estimated annual formula cost of $13.0 million in General Revenue.
Local Government Impact
Based on information provided by a sample of community colleges, the increased contact hours available for funding under the provisions of the bill could result in an increase in formula funding. However, without knowing which programs would be offered under the expanded definition for potential students, these fiscal implications of the bill are unknown at this time.
Source Agencies: 781 Higher Education Coordinating Board
781 Higher Education Coordinating Board
LBB Staff: UP, THo, DEH, ESC
UP, THo, DEH, ESC