LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 24, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  House Bill No. 571
          Committee on Higher Education                              By: Rangel
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB571 ( Relating 
to exempting certain educational aides from tuition and fees 
charged by institutions of higher education.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB571-As Introduced
         
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 exempt certain educational aides from tuition 
and fees charged by institutions of higher education.  

Fiscal 
Analysis

The exemption authorized by this bill is not a mandatory 
exemption.  

The bill would amend the Education Code, Chapter 
54.213 which allows institutions to fund the exemption with 
local funds or any funds appropriated to the institution but 
does not require an institution to provide exemptions beyond 
those funded through appropriations specifically designated 
for the program.  Chapter 54.213 would also allow exemptions 
to be funded from savings to the Foundation School Fund that 
occur as a result of the Early High School Graduation Scholarship 
Program.  This funding source would only be available after 
funding any  exemptions authorized under the Early High School 
Graduation Program or the AFDC program.  

The methodology 
that the Texas Education Agency has used to implement the savings 
to the Foundation School Program for the Early High School Graduation 
and the AFDC Scholarship Program is based on the actual amount 
of the tuition exemptions given.  No unobligated savings to 
the Foundation School Program result from these exemptions. 
 The TEA could fund the exemption proposed by this bill in the 
same manner or the Legislature could specifically appropriate 
general revenue funds to fund the exemption.

Methodology

The 
Texas Education Agency estimates that the maximum number of 
educational aides eligible for this program would be 16,366; 
however, the agency states that it is probable that far fewer 
than that number would actually meet the criteria established 
by the bill.  The Texas Higher Education Coordinating Board 
estimates the amount of tuition and fees to be exempted per 
student through this program would equal $1,076 in FY1998 assuming 
the student is enrolled half-time and would rise to $1,621 per 
student in FY 2002.  

If 16,366 aids received the exemption, 
the potential cost of this program would be $17.6 million in 
1998, rising to $26.5 million in fiscal year 2002 due to increases 
in tuition and fees.

The Coordinating Board could incur administrative 
expenses to certify eligible students and to reimburse colleges 
for the exempted charges.  These costs could be paid from general 
revenue funding.

 No fiscal implication to units of local 
government is anticipated. 
         
 
          
   Source:            Agencies:   781   Higher Education Coordinating Board
                                         701   Texas Education Agency - Administration
                                         
                      LBB Staff:   JK ,LP ,DH ,LD