LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 24, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  House Bill No. 2159
          Committee on Higher Education                              By: Uher
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2159 ( Relating 
to granting resident tuition status to children or dependents 
of certain former Texas residents.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2159-As Introduced
         
The cost of the exemption proposed by this bill would be $2,152 
from lost tuition and fees for each university student granted 
the exemption.
         

         
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.

There is no data 
available on the number of families who lived in Texas for over 
ten years, then leave the state and have dependent children 
who return to attend school in Texas within 5 years of the families 
exit from Texas.  

The amount of tuition and fees exempted 
per student would be $2,152 at universities and $1,810 at community 
colleges.  This would be a loss in tuition income to the institutions 
granting the exemptions.

The Texas Higher Education Coordinating 
Board states that total exemptions provided last year were $115.6 
million at universities and $10.3 million at community colleges. 
 Because of the large amount of existing exemptions and based 
on the small number of inquiries received by the Texas Higher 
Education Coordinating Board regarding the exemption proposed 
by this bill during the last year, they estimate that the impact 
of granting resident tuition status to children or dependents 
of certain former Texas resident would not be significant.  
However, as the exemption becomes more widely known, it is probable 
that the cost of the exemption would increase.
          
The cost to local community college districts would be $1,810 
from lost tuition and fees for each student granted this exemption.
          
   Source:            Agencies:   781   Higher Education Coordinating Board
                                         720   University of Texas System Administration
                                         
                      LBB Staff:   JK ,LP ,LD