LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 7, 1997
TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 2652
Committee on Higher Education By: Rangel
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2652 ( Relating
to creating a special college program to assist certain persons
to complete a college degree.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by HB2652-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(425,000) 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
This bill would establish Lone Star College, effective September
1, 1997. The college would provide an alternate route to obtaining
a degree for students who had acquired a sufficient number of
college credits but might not have met the residency of other
institutions. The college would be authorized to award a limited
number of different types of degrees.
The bill would authorize
the college to operate under the control of the board of regents
of an existing university or university system designated by
the Higher Education Coordinating Board. The bill would prohibit
the college from offering courses, having a campus, or benefiting
from the Higher Education Assistance Fund or the Permanent University
Fund.
The bill would require that the college be abolished
if not accredited by a recognized accrediting agency by August
31, 2003.
Methodolgy
The Texas Higher Education Coordinating Board has identified
an institution that would be capable to operate the college
as described in the bill. They estimated that the operation
could initially be staffed by a full-time director and one FTE
equivalent made up of several part-time administrators/faculty
members plus support staff and facilities. Staffing needs would
increase slightly as student participation increased.
It
is assumed that the following numbers of students would participate
in the program: 1999 - 50; 2000 - 100; 2001 - 200; 2002 - 300.
It
is assumed that students would pay an initial $500 fee for an
initial consultation and a $50 maintenance fee until they received
their degrees.
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 ($215,000) $0
1998 (210,000) 25,000
2000 (205,000) 27,500
2001 (200,000) 55,000
2002 (225,000) 60,000
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 ($215,000)
1999 (210,000)
2000 (205,000)
2001 (200,000)
2002 (225,000)
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