LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 25, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  House Bill No. 2214
          Committee on Higher Education                              By: Delisi
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2214 ( Relating 
to fees for correspondence courses for certain veterans and 
the children of certain veterans.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2214-As Introduced
         
No fiscal implication to the State is anticipated.
         

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

The bill would 
exempt certain Texas veterans and their dependents as defined 
by the Education Code Section 54.203 (a) and (b) from tuition 
and fees associated with continuing education courses.  

Because 
continuing education courses receive no formula funding and 
are not supported by general revenue, the bill would have no 
impact on general revenue or the State.   

However, continuing 
education courses are required to be self-supporting. The bill 
would reduce funds available to institutions to support continuing 
education courses by exempting certain veterans and their dependents 
from tuition and fee charges.  Effectively, other students enrolled 
in continuing education courses would be required to pay for 
the costs of providing services for those students granted exemptions 
under this bill.

Institutions provided estimates of loss 
of tuition and fee income based on either current enrollment 
of veterans in their continuing education courses or the veteran 
population within their service area.  The UT System estimates 
$1.9 million per year for their component institutions; UH System 
components, $300,000 per year; Texas Tech University, $300,000 
per year.
          
Community college districts would probably experience a comparable 
loss in tuition and fee income.
          
   Source:            Agencies:   781   Higher Education Coordinating Board
                                         720   University of Texas System Administration
                                         730   University of Houston
                                         733   Texas Tech University
                      LBB Staff:   JK ,LP ,LD