LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 25, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  House Bill No. 1384
          Committee on Higher Education                              By: Telford
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1384 ( Relating 
to the tuition charged to certain nonresident students registered 
at certain upper-level public institutions of higher education.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1384-As Introduced   FN Revision 1
         
No significant fiscal implication to the State is anticipated.
         
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 allow residents of bordering 
states to enroll in public upper level institutions in adjacent 
Texas counties and pay the Texas resident tuition rate.  Texas 
A&M - Texarkana is the only institution that would meet this 
requirement.

Fiscal Analysis

Eligible students currently 
enrolled at TAMU-Texarkana who do not already qualify for existing 
nonresident tuition waivers would no longer be required to pay 
the out-of-state tuition rate of $246 per semester credit hour 
but would pay only the resident tuition rate of $34.

Methodology

It 
is assumed that additional students from Arkansas would take 
courses at TAMU-Texarkana if this exemption were available. 
 This estimate assumes that an additional 34 students would 
enroll in 1998.  The formula funding average rate per hour is 
$145.  The estimated cost to general revenue for these additional 
students is $118,500 in 1998.
         
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   781   Higher Education Coordinating Board
                                         
                      LBB Staff:   JK ,LP ,LD