LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 15, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  Senate Bill No. 148, Engrossed
          Committee on Higher Education                              By: Bivins/et al.
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB148 ( Relating 
to the development of certain curricula by the Texas Higher 
Education Coordinating Board.) this office has detemined the 
following:
         
         Biennial Net Impact to General Revenue Funds by SB148-Engrossed
         
Implementing the provisions of the bill would result in a net 
impact of $0 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
 
The bill would require the Texas Higher Education Coordinating 
Board to develop a core curriculum of at least 42 semester credit 
hours.  The bill would guarantee that a student that successfully 
completes the core curriculum at an institution of higher education 
and transfers to another institution of higher education would 
not be required to take additional core courses.  Additionally, 
the bill would require the Coordinating Board to develop field 
of study curricula and would require the transferability of 
those courses when fully completed at a given institution.  
The bill would require the Coordinating Board to establish policies 
and procedures for dispute resolution.

The bill would require 
the Coordinating Board to adopt rules to implement the provisions 
of the bill by September 1, 1998.
 
Methodolgy
 
Based on data from the Texas Higher Education Coordinating Board, 
approximately 36,000 students transfer from Texas community 
colleges to Texas universities, and approximately 15,000 students 
transfer from one Texas university to another Texas university 
each year.  It is assumed for purposes of this analysis that 
each of the transfers from community colleges would take an 
additional six semester credit hours at a community college 
before transferring but would take nine fewer semester credit 
hours at the university after transfer.  Additionally, it is 
assumed  that each of the university to university transfer 
students will take three fewer hours at their new university 
because less duplication of courses would be required.  The 
net result would be the equivalent of 7,200 additional FTE community 
college students and the equivalent of 12,300 fewer FTE university 
students.

The cost to the general revenue fund of one FTE 
university student is approximately $4,300.  Because university 
students who transfer from community colleges or other universities 
would take fewer hours, it is estimated that the eventual savings 
to the general revenue fund would be $52.9 million per year 
(12,300 FTE students x $4,300).  These savings would be partially 
offset by the increase in hours taken at community colleges. 
 The cost to the general revenue fund for one FTE community 
college student is approximately $2,400.  The cost to the general 
revenue fund for the additional 7,200 FTE community college 
students is estimated at $17.3 million.

It is assumed that 
the Coordinating Board would adopt rules implementing the provisions 
of this bill in July 1998.  Therefore, community colleges would 
begin seeing increased enrollments in fiscal year 1999.  Under 
the present method of funding community colleges using base 
period enrollment, increased enrollment at community colleges 
in fiscal year 1999 would not affect appropriations to the community 
colleges for the 1998-99 biennium.  Similarly, the universities 
would begin seeing some decrease in enrollment beginning in 
1999 with further decreases in the 2000-2001 biennium.  It is 
assumed that the only part of the savings from decreased university 
enrollments would be reflected in the base period enrollment 
data used to calculate funding for the 2000-2001 biennium.  
 

It is assumed that costs of developing the core curriculum 
at the Coordinating Board and the costs of implementation at 
the institutions would have no significant fiscal impact.
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           
            Savings/(Cost)     Savings/(Cost)                                                             
            from General       from General                                                               
            Revenue Fund       Revenue Fund                                                               
            0001               0001                                                                        
       1998                $0                $0                                                      
       1998                 0                 0                                                      
       2000      (17,280,000)        26,445,000                                                      
       2001      (17,280,000)        26,445,000                                                      
       2002      (17,280,000)        52,890,000                                                      
 
 
         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                   $0
               1999                    0
               2000            9,165,000
               2001            9,165,000
               2002           35,610,000
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
The cost to local community college taxing districts of one 
FTE student is estimated at $1,030.  The cost of an additional 
7,200 FTE students would be approximately $7.4 million per year 
beginning in fiscal year 1999.

Similar annual fiscal implications 
would continue as long as the provisions of this bill are in 
effect.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         304   Comptroller of Public Accounts
                                         781   Higher Education Coordinating Board
                      LBB Staff:   JK ,LP