LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 15, 1995



 TO:     Honorable John T. Montford, Chair      IN RE:  House BillNo. 1479,
         Committee on Finance                                 as engrossed
         Senate                                         By: Hilderbran, et
         Austin, Texas                          al.








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1479 (Relating to tuition and fee exemptions at public
institutions of higher education for certain students.) 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 provide a one year college tuition and fee
exemption for high school graduates who were dependent children
receiving financial assistance (AFDC) under Human Resource Code,
Chapter 31, under the age of 22 years, enrolled in college not
more than one year after high school graduation, and classified
as a Texas resident.  A second category of high school graduates
who would also qualify for the one year tuition and fee exemption
is those students who completed high school in less than four
academic years.  The bill would allow public institutions of
higher education to fund tuition and fee exemptions  from local
funds or from funds appropriated to institutions for the purpose
of the program.  Institutions would not be required to provide
exemptions beyond those funded through appropriations
specifically designated for the purpose of the program.

Recent data indicates that approximately 50 students per year who
receive AFDC attend public colleges and universities.  If one
half of those students would attend community colleges and the
other half attend public universities, the annual cost for the    




tuition and fee waiver would equal $50,000.

 Based on a previous program which offered tuition and fee
waivers to early high school graduates, the estimated annual
demand for funds is $1,000,000 to provide exemptions for up to
1000 students.

Since the bill does not require a specific appropriation for
tuition and fee exemptions, exemptions offered by institutions
would be optional.  It is assumed that such optional waivers
would only be granted if sufficient local funds were available. 
The cost to institutions for offering optional waivers would be
dependent upon the number of waivers offered and cannot be
determined.  Assuming no additional State appropriation would be
made for tuition and fee waivers, no fiscal impact to the State
is anticipated.


No fiscal implication to the State is anticipated.

The fiscal implication to  units of local government cannot be
determined.


Source:   Higher Education Coordinating Board
          LBB Staff: JK, MK, DF