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