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