LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 7, 2025 TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2545 by Gerdes (Relating to the establishment of the Rural Workforce Training Grant Program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2545, As Introduced: a negative impact of ($467,784) through the biennium ending August 31, 2027. The grant amount cannot be determined at this time. It is assumed that any additional funding associated with the grant amount would be determined by the Legislature. 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 toGeneral Revenue Related Funds2026($233,892)2027($233,892)2028($233,892)2029($233,892)2030($233,892)All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20232026($233,892)2.02027($233,892)2.02028($233,892)2.02029($233,892)2.02030($233,892)2.0 Fiscal AnalysisThis bill would amend the Labor Code to require the Texas Workforce Commission (TWC) to establish the Rural Workforce Training Grant Program to provide grants to eligible entities that provide occupational training (including apprenticeships and on-the-job training) and related workforce development services in rural counties. This bill would require an annual report identifying grants awarded under the program and their effectiveness with the initial report required to be submitted by December 1 each year. This bill is effective September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 7, 2025
TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2545 by Gerdes (Relating to the establishment of the Rural Workforce Training Grant Program.), As Introduced
TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2545 by Gerdes (Relating to the establishment of the Rural Workforce Training Grant Program.), As Introduced
Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development
Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2545 by Gerdes (Relating to the establishment of the Rural Workforce Training Grant Program.), As Introduced
HB2545 by Gerdes (Relating to the establishment of the Rural Workforce Training Grant Program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2545, As Introduced: a negative impact of ($467,784) through the biennium ending August 31, 2027. The grant amount cannot be determined at this time. It is assumed that any additional funding associated with the grant amount would be determined by the Legislature. 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 HB2545, As Introduced: a negative impact of ($467,784) through the biennium ending August 31, 2027. The grant amount cannot be determined at this time. It is assumed that any additional funding associated with the grant amount would be determined by the Legislature. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2026 ($233,892)
2027 ($233,892)
2028 ($233,892)
2029 ($233,892)
2030 ($233,892)
All Funds, Five-Year Impact:
2026 ($233,892) 2.0
2027 ($233,892) 2.0
2028 ($233,892) 2.0
2029 ($233,892) 2.0
2030 ($233,892) 2.0
Fiscal Analysis
This bill would amend the Labor Code to require the Texas Workforce Commission (TWC) to establish the Rural Workforce Training Grant Program to provide grants to eligible entities that provide occupational training (including apprenticeships and on-the-job training) and related workforce development services in rural counties. This bill would require an annual report identifying grants awarded under the program and their effectiveness with the initial report required to be submitted by December 1 each year. This bill is effective September 1, 2025.
Methodology
This analysis assumes the Texas Workforce Commission (TWC) would operate the new Rural Workforce Training Grant Program established by the bill similarly to how the agency operates the Skills Development Fund, Job and Education for Texans (JET) program, and the Self-Sufficiency Fund. Based on this assumption, the agency would require an additional 2.0 Grant Specialist III positions ($70,662 each year with $20,082 in benefits per position) that would perform daily tasks including, but not limited to, program and grant management and administration with an additional $52,404 for agency payroll contributions, annual operating expenses, rent, utilities, consumables, and indirect costs. In the 2026-27 biennium, the total cost to implement provisions of the bill would be $467,784 in General Revenue.
Technology
TWC anticipates no technology costs.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 320 Texas Workforce Commission
320 Texas Workforce Commission
LBB Staff: b > td > JMc, RStu, GDZ, JBel
JMc, RStu, GDZ, JBel