Date Requested: June 13, 2019
Time Requested: 04:25 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
4204 Engrossed sb1039
CBD Subject: Education (K12)


General Revenue

Sources of Revenue:

General Fund 0589

Legislation creates:

Creates New Expense

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

Senate Bill 1039, if enacted, would rename the Underwood-Smith Teacher Scholarship and Loan Assistance Programs as the Underwood-Smith Teaching Scholars Program. In addition, the legislation would modify the program purpose to target certain academic disciplines and emphasize the academic distinction of award recipients. The bill would also modify award eligibility, renewal, and service agreement criteria to reflect a modified program purpose. The legislation would also require that certain mentoring services be provided to award recipients and would preserve eligibility and service agreement criteria for current award recipients. The amount of an award would be modified and tuition and fee charges for program recipients would be limited. It is estimated that the annual costs associated with this program upon full implementation would be approximately $1.4 million. Upon full implementation 100 scholarships would be awarded per year. The program would award 25 new scholarships each year. The annual scholarship award amount would be $10,000.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 300,000 1,350,000
Personal Services 0 0 0
Current Expenses 0 50,000 350,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 250,000 1,000,000
2. Estimated Total Revenues 0 0 0

Explanation of above estimates (including long-range effect):

Scholarships would be awarded beginning in FY 2020. The current $328,000 appropriation would be needed to phase out the existing Underwood Smith Teacher Loan Assistance Program. The other costs associated with the program would remain constant from FY 2021 through its full implementation. The total appropriation increase required for the initial year would be $300,000.


The effective date for the implementation of the Underwood- Smith scholarship provisions of this legislation should be July 1, 2020 instead of July 1, 2019. Academic Year 2019-2020 awards have already been made to students under the previous provisions of the Code.

    Person submitting Fiscal Note: Ed Magee
    Email Address: