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