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