LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 2, 1995



 TO:     Honorable John T. Montford, Chair      IN RE:  Senate BillNo. 1019
         Committee on Finance                           By: Rosson
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1019 (Relating to social security coverage of certain student
employees of public institutions of higher education.) this
office has determined the following:

The bill would exempt certain student employees of institutions
of higher education from Social Security coverage.  The bill
would define "student employee" as a student enrolled and
regularly attending classes in an institution of higher education
and who is employed by an institution for no more than 30 hours a
week during a regular or summer session.

The bill would require the Comptroller to reduce any remaining
General Revenue Fund transfers to be made to an institution of
higher education for the 1996-97 biennium by one-half of an
institution's remaining contributions to be made for student
employees under Section 606.064 of the Government Code.  This
reduction would only apply to contributions for student employees
paid entirely from the General Revenue Fund.

The bill would take effect upon an agreement between the State of
Texas and the Social Security Administration providing that
student employees of institutions of higher education were
excluded from Social Security coverage.

The bill would result in a savings to the General Revenue Fund by
exempting student employees working 30 hours a week or less from
Social Security coverage.  Thus, the state would not be required
to pay either the state Social Security matching contribution
(7.65 percent of wages) or  the state contribution toward an    




employees' share of Social Security taxes (5.85 percent of wages 
up to a maximum wage of $16,500, or $965 dollars per year). 

These savings, however, cannot be estimated because of
insufficient information concerning the number and wage rates of
student employees working 30 hours a week.


No fiscal implication to units of local government is
anticipated.

The fiscal implication to  the State cannot be determined.


Source:   Comptroller of Public Accounts, Higher Education
Coordinating Board
          LBB Staff: JK, RN, DF