LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 3, 1995



 TO:     Honorable Irma Rangel, Chair           IN RE:  House Bill No. 328
         Committee on Higher Education                  By: Munoz
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
328 (Relating to tuition for a resident of Mexico who registers
at a component of the Texas State Technical College System) this
office has determined the following:

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 allow citizens of Mexico who attend Texas State
Technical College-Harlingen and demonstrate a financial need to
pay the resident tuition rate.  The bill would also add all Texas
State Technical College components to the pilot program through
which a limited number of Mexican residents may attend any
general academic teaching institution in the state and pay
resident tuition.

Currently four Mexican citizens attend Texas State Technical
College-Harlingen.  It is assumed that two of those four students
would qualify to pay resident tuition which would result in a
loss of nonresident tuition to the institution.  Furthermore, it
is assumed that the lower tuition rates would attract an
additional five students who would qualify to pay resident
tuition in fiscal years 1996, 1997 and 1998.  Each additional
student would provide additional resident tuition to the
institution, and would create formula funding costs for the
state.

The probable fiscal implication of implementing the provisions of    




the bill during each of the first  five years following passage 
is estimated as follows:
     



          Fiscal  Probable Cost Out    Probable (Loss)  
          Year       of  General      Gain to Estimated 
                  Revenue Fund 001    Other Educational 
                                       & General Income 
                                             770        
                                                        
          1996               $17,280            ($2,790)
          1997                34,560                 360
                                                        
          1998                51,840               3,510
                                                        
          1999                51,840               3,510
          2000                51,840               3,510
                                                        
                                                        
                                                        

       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.


Source:   Higher Education Coordinating Board
          LBB Staff: JK, DB, WRR