LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 2, 1995 TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 3119 Committee on Higher Education By: Hunter, Bob House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 3119 (Relating to the exemption from dues, fees, and charges provided to a veteran or dependent of a veteran enrolled at a public institution of higher education) 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 amend V.T.C.A., Education Code Section 54.203 (Hazlewood Act) to allow a student to receive federal educational benefits and still qualify for Hazlewood benefits (waived tuition and fees) if the federal benefit is less than the amount of the Hazlewood benefit. It is estimated that the bill would increase the number of participants in the Hazlewood program each year by five percent. For community colleges, it is estimated that 266 additional students each year would qualify for the program and be exempt from paying approximately $100,000 in tuition and fees per year. For universities, health-related institutions, and technical colleges, it is estimated that an additional 207 students would qualify for the program and be exempt from paying approximately $152,000 in tuition and fees per year. The estimates below assume continuation of the current policy of replacing lost tuition revenue with general revenue. Estimated cost to general revenue reflects an anticipated decline in tuition revenue of $76,000 per year. Estimates of revenue loss to local funds reflect an anticipated decline in fee revenue of $76,000 per year for general academic, health-related, and technical institutions and a decline of $100,000 per year in tuition and fees for public community/junior colleges. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Cost Out Probable Loss to Year of General Institutional Revenue Fund 001 Local Funds 1996 $76,000 $176,000 1997 76,000 176,000 1998 76,000 176,000 1999 76,000 176,000 2000 76,000 176,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Higher Education Coordinating Board LBB Staff: JK, MK, WRR