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
          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 

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.
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                                                                                      
            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
               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 
   Source:            Agencies:   
                      LBB Staff:   JK ,LP ,LD