LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 10, 1995 TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 2580 Committee on Ways & Means By: Howard House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2580 (Relating to the use of certain sales and use tax revenue to support a public junior college.) 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 allow a public junior college to become eligible to receive a state appropriation if the college receives an annual contribution of sales and use taxes collected by a political subdivision and pledged to the use of the college. The bill would authorize these contributions to be used in the same manner as provided by law for ad valorem taxes. The fiscal impact to the State cannot be estimated because the number of new junior college districts that could be created and become eligible for state aid cannot be determined. The bill would make it easier to create a new junior college district because they would not be required to levy a property tax to be come eligible for state aid as long as they receive an annual contribution of sales and use taxes from a unit of local government. Furthermore, it cannot be estimated how many new students would be enrolled in the new junior college districts. The fiscal impact to units of local government cannot be estimated because the number of political subdivisions that would choose to dedicate a portion of the sales and use tax to a public junior college is unknown. The fiscal implication to the State or units of local government cannot be determined. Source: Comptroller of Public Accounts, Higher Education Coordinating Board LBB Staff: JK, LS, DF