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