83(R) - 2013
Economic & Small Business Development
Relating to a pilot program to expand access to career and technical education partnerships in rural areas.
Estimated Two-year Net Impact to General Revenue Related Funds for HB533: 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. No significant fiscal implication to units of local government is anticipated.
The bill states that the program is subject to available funding. For the purpose of this analysis, it is anticipated that $800,000 would be provided in grant funding in each fiscal biennium (or $400,000 in each fiscal year).
According to TDA, the agency would need an additional part-time (0.5) FTE 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. Recurring travel costs related to the position's grant management responsibilities are estimated to be $1,307 each fiscal year. The estimate in the table above also includes first-year rulemaking costs, which according to TDA are estimated to be $33,997 in fiscal year 2014 only.
Summary: HB 533 would allow the Commissioner of the Texas Department of Agriculture to create a rural workforce investment program by partnering with public schools, public junior colleges, public universities, and businesses to invest in workforce plans that focus on preparing a workforce for jobs in rural areas.
Analysis: The state is already engaged in numerous workforce development programs at schools, colleges, and universities. Furthermore, private industry is addressing this need as well. In our view the state does not need to create an additional workforce development program. This program will grow government and create new public expenses. We oppose HB 533.