LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 7, 1995



 TO:     Honorable Irma Rangel, Chair           IN RE:  House Bill No. 1146
         Committee on Higher Education                  By: Mowery
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1146 (Relating to tuition and fees at a public institution of
higher education for a nonresident student holding a competitive
academic scholarship) this office has determined the following:

The bill would repeal V.T.C.A., Education Code Section 54.064
which waives the difference between resident and nonresident
tuition charges for nonresident students who are awarded a
competitive academic scholarship valued at $200 or more for any
part or all of an academic year.  The bill would exempt junior
and senior college students from nonresident tuition who held an
academic scholarship prior to January 1, 1995 for the remainder
of their program of study but not beyond the fall semester of
1997.  Currently, approximately 9,000 students attending public
universities and health-related institutions are receiving such
waivers.  Estimates of savings and increased tuition revenue
indicated below assume that fewer nonresident students will
choose to attend Texas colleges and universities, thus decreasing
the need for formula funding based on semester credit hours.  In
addition, the estimates below assume that 1/3 to 1/4 of the
students currently receiving waivers will continue their course
of study after they no longer qualify for resident tuition
charges.

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 Gain to 
          Year      from  General      Local Funds Held 
                  Revenue Fund 001    Outside the State 
                                           Treasury     
                                                        
          1996            $9,000,000          $2,400,000
          1997            17,800,000           4,700,000
                                                        
          1998            26,600,000           7,100,000
                                                        
          1999            26,600,000           7,100,000
          2000            26,600,000           7,100,000
                                                        
                                                        
                                                        

       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