LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 3, 1995



 TO:     Honorable Bill Ratliff, Chair          IN RE: Committee Substitute
         Committee on Education                 for
         Senate                                               Senate Bill
         Austin, Texas                          No. 1699
                                                 








FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1699 (Relating to coordination between The University of Texas at
Tyler and other institutions 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 authorize The University of Texas at Tyler to
offer lower division courses relating to an engineering degree
program if the program is approved by the Coordinating Board and
if the courses are offered as part of a partnership agreement. 
The university would also be authorized to accept donations,
gifts, and grants to help equip the engineering program, if
approved.  The bill would direct the institution to build and
expand partnership agreements with junior colleges and other
institutions and would direct any lower division hours offered at
UT-Tyler to be formula funded at the four-year college rate. 
Finally, the bill would authorize a nonresident student who is
simultaneously enrolled at UT-Tyler and another institution under
a program offered jointly by the two schools under a partnership
agreement and who pays Texas resident tuition and fees by virtue
of the student holding a competitive scholarship at one school,
to pay Texas resident charges at each institution in which the
student is simultaneously enrolled under the program.    




For purposes of this fiscal note it is assumed that enrollment in
the engineering program would be comprised of students already
enrolled in the institutions.  It is estimated that the program 
would have 30 students beginning in 1997 and increase by 30 each
year to 120 by fiscal year 2000.  Any fiscal implications to the
State would be based on the difference in cost to the State
versus the cost to the local junior college district for
educating these students.  Any savings to the local community
college district would be based on a reduced student load. 
However, because the estimated number of students in the program
is relatively small, the fiscal impact to both the State and the
local community college district would be insignificant.  Any
additional cost and loss of tuition and fee income to the State
and local junior college districts from the nonresident tuition
waiver are also not expected to be significant.


No significant fiscal implication to the State or units of local
government is anticipated.


Source:   Higher Education Coordinating Board
          LBB Staff: JK, WRR