LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 18, 1997
TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 269
Committee on Higher Education By: Counts
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB269 ( Relating
to exempting members of the Texas National Guard from tuition
charged by an institution of higher education.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by HB269-As Introduced
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would exempt members of the Texas National Guard from
tuition charged by an institution of higher education. To be
eligible, the bill would require the student to be a Texas resident
and agree to enlist in the National Guard (or, if already in
the Guard, enlist for an additional period of time) as determined
by the Adjutant General's Office). A student could receive
an exemption under this program for up to 12 semesters. The
bill would take effect beginning with the 1997 fall semester.
Methodolgy
The Texas Higher Education Coordinating Board, using data from
the Adjutant General's Office, estimates that the bill would
affect the 1150 guardsmen that are currently in college, taking
an average of 8 hours per year; an additional 150 guardsmen
would be expected to enroll in the first two years of the exemption
program, and additional 100 during the third year. Thereafter,
enrollments would be expected to remain constant. It is assumed
that half of the students would be enrolled at universities
and half in community colleges.
Because of the base period
methodology for funding enrollment at universities and community
colleges, the bill would not affect general revenue appropriations
during the 1998-99 biennium. Beginning in 2000-2001, the bill
would result in increased formula costs for the additional university
and community college students. Because of the all funds methodology
of funding higher education, the loss of Other Educational and
General Income (primarily tuition and fee revenue) at the universities
would be a cost to General Revenue beginning in fiscal year
2000.
Local community colleges districts would lose tuition
revenues and incur additional local tax costs. For community
college taxing districts, the exemption for currently-enrolled
students would cost $101,775 in FY 1998, rising to $125,350
in FY2002. Additional students would result in costs to community
college tax districts of $20,400 in FY1998, rising to $54,400
in FY2002.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue
Savings/(Cost) Gain/(Loss) from
from General Other
Revenue Fund Educational and
General Income/
GR-Dedicated
0001 8022
1998 $0 ($156,400)
1998 0 (165,600)
2000 (536,400) (174,800)
2001 (545,600) (184,000)
2002 (545,600) (184,000)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 (536,400)
2001 (545,600)
2002 (545,600)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Local community college districts would lose the tuition and
fee income from students that would qualify under this bill.
The additional students enrolling in community colleges would
place an additional tax burden on the local community college
taxing districts. The total of these two costs is estimated
to be $122,175 in FY 1998, rising to $179,750 in FY 2002.
Source: Agencies: 781 Higher Education Coordinating Board
LBB Staff: JK ,LP ,LD