LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 16, 1995 TO: Honorable John T. Montford, Chair IN RE: Committee Substitute Committee on Finance for Senate House Bill No. Austin, Texas 1479 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 and tuition credits at public and private 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, enroll in college not more than one year after high school graduation, meet institutional entrance requirements, and classified as Texas residents. 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 no more than 36 consecutive months. The bill would allow public institutions of higher education to fund tuition and fee exemptions for AFDC students from local funds, funds appropriated to institutions for the purpose of the program, or from surplus Foundation School Funds remaining after all tuition assistance for early high school graduates has been distributed to institutions. Institutions would not be required to provide exemptions beyond those funded through appropriations specifically designated for the purpose of the program. Funding for tuition and fee exemptions for early high school graduates would come from the Early High School Graduation Scholarship Program. The scholarship program would transfer up to $1,000 per eligible student from the Permanent School Fund to eligible institutions of higher education (both public and private) through the Higher Education Coordinating Board in the form of tuition credits. The Coordinating Board would distribute tuition credits to institutions on behalf of eligible students. Local school districts with students participating in the Early High School Graduation Scholarship program would have their Tier One state funding reduced by the local share of the students' actual tuition assistance. Since funding for tuition exemptions for AFDC students would be provided by local funds or surplus scholarship funds, no fiscal impact to the State is anticipated as a result of those exemptions. The fiscal implications to local school districts as a result of the Early High School Graduation Scholarship Program is dependent upon the number of students participating in the program from each district and the actual amount of each student's tuition credit. Therefore, the fiscal implications to local school districts cannot be determined. No fiscal implication to State is anticipated as a result of the Early High School Graduation Scholarship Program. No significant fiscal implication to the State is anticipated. The fiscal implication to units of local government cannot be determined. Source: Central Education Agency - Administration, Higher Education Coordinating Board LBB Staff: JK, MK, WRR