LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 31, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
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
Coordinating Board.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB148-Conference Committee Report
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
students to take the Texas Academic Skills Program (TASP) test
prior to enrolling in collegiate coursework and would authorize
the Coordinating Board to prescribe alternative tests for initial
use. The bill would establish limits on the number of semester
credit hours of remedial funding received for a student and
would require the Coordinating Board to develop a performance
funding formula for institutions who successfully remediate
students.
The bill would amend the reporting requirements
for the TASP and would encourage high school students who have
passed the exit level high school test to take the TASP test
while in public school. The bill would require the Coordinating
Board and the Texas Education Agency to provide TASP information
to high school students, parents, and faculty.
Methodolgy
Based on data from the Higher Education Coordinating Board,
about 36,000 students transfer from Texas community colleges
to Texas universities, and approximately 15,000 students transfer
from one Texas university to another each year. It is assumed
that each transfer 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 university
to university transfer student will take three fewer hours at
the 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. It is estimated that
the savings for the university students would be $26.4 million
for the 2000-01 biennium, increasing in the subsequent biennium.
These savings would be partially offset by the increase in hours
taken at community colleges. The cost to the general revenue
fund for the additional community college students is estimated
at $17.3 million.
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 requirement to take the TASP test prior
to enrolling in college level work would allow some students
to address their academic deficiencies while still in high school
and reduce the number of remedial courses taken at universities
and community colleges. It is estimated that this would result
in 250 fewer full-time equivalent university students and 750
fewer full-time equivalent community college students beginning
with the base period for the 2000-01 biennium for a annual savings
to the General Revenue Fund of $2.9 million.
It is assumed
that few students would require the maximum semester credit
hour limits proposed, and there would be no significant fiscal
impact from that provision of the bill. It is assumed that
the cost to the Coordinating Board and the Texas Education Agency
of distributing materials would be part of the ongoing operations
of the agencies. It is assumed that no state funds will be
appropriated to pay for the cost of high school students who
take the TASP test.
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
Associated with
the Core
Curriculum
0001 0001
1998 $0 $0
1998 0 0
2000 9,165,000 2,909,250
2001 9,165,000 2,909,250
2002 35,610,000 2,909,250
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 12,074,250
2001 12,074,250
2002 38,519,250
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 for one
FTE student is estimated at $1,030. The cost of the additional
enrollment associated with the core curriculum would be approximately
$7.4 million per year beginning in fiscal year 1999. There
would also be an estimated savings of $772,500 per year due
to fewer students requiring remedial coursework in community
colleges.
Source: Agencies:
LBB Staff: JK ,LP ,LD