LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 21, 1995



 TO:     Honorable Irma Rangel, Chair           IN RE: Committee Substitute
         Committee on Higher Education          for
         House of Representatives                                  House
         Austin, Texas                          Bill No. 420










FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
420 (Relating to the admission standards, tuition, fees, and
governing boards of general academic teaching institutions and
university systems and to testing and remedial education by
general academic teaching institutions and university systems)
this office has determined the following:

The bill would require each governing board of public
universities to set admission standards to insure that 95 percent
of students admitted are prepared to do college-level course
work. 

The bill would limit governing boards of public institutions of
higher education concerning expenses, reimbursements to board
members, naming of buildings, member's employment at
institutions, contracting, alcohol use at board functions, and
term limits. 

The bill also would provide for a Joint Select Committee on
Higher Education Reorganization to study the organization of
higher education in Texas, including the Higher Education
Coordinating Board, and to make recommendations to the
Legislature by January 1, 1997.  The operating expenses for this
committee would come from the contingent expense funds of the
House and Senate and are not included in the estimates below.    




The estimates below assume that 1,586 full time equivalent (FTE)
students who currently enroll in four-year institutions would not
be able to meet the admission requirements and would choose to 
attend a local community college.  The general revenue savings
reflect the differential cost to the state in formula funding
between four-year and two-year institutions.  The estimates of
cost to local community college tax districts reflect the
anticipated increase in enrollment of 1,586 FTE students.

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 Savings    Probable Cost to 
          Year       to  General      Local Community  
                  Revenue Fund 001        College      
                                       Tax Districts   
                                                       
          1996                    $0                 $0
          1997                     0                  0
                                                       
          1998             7,469,856          2,000,000
                                                       
          1999             7,469,856          2,000,000
          2000             7,469,856          2,000,000
                                                       
                                                       
                                                       

       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, MK, WRR