LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 9, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 576, Committee Report 1st House, Substituted
Committee on Finance By: Sibley/et al.
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB576 ( relating
to the establishment of the Texas New Horizons Scholarship Trust
Fund to exempt worthy high school graduates from tuition and
fees at public institutions of higher education) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB576-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
negative impact of $(4,000,000) 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
The bill would amend Subchapter D, Chapter 54 of the Education
Code to establish the Texas New Horizons Scholarship Fund and
would require the Texas Higher Education Coordinating Board
to issue Texas New Horizons Scholarships to qualified high school
graduates based on certain educational and economic criteria.
The bill would create a new special fund, the New Horizons
Scholarship Trust Fund, outside the treasury but in trust of
the Comptroller. Money in the fund could be spent without appropriation
but only to fund the scholarship program. Interest and income
to the fund would be deposited in the fund. The Coordinating
Board would be authorized to accept gifts and grants from any
public or private sources.
The bill would authorize the Coordinating
Board to spend up to 2.5 percent of the deposits into the fund
for administrative costs.
The bill would amend Section 74.3011
of the Property Code. This would direct local telephone exchange
companies to deliver money to the Texas New Horizons Scholarship
Trust Fund instead of voluntarily delivering money to a rural
scholarship fund. The local telephone companies would file
with the Comptroller verification of the amount of money delivered.
A
claim for money delivered to the trust fund would be filed with
the local telephone exchange company and forwarded to the Coordinating
Board. The Coordinating Board would be authorized to pay the
claim from the trust fund if determined valid. A person aggrieved
by the claim decision could file suit against the Coordinating
Board in a district court in Travis County.
The bill would
repeal Section 74.3012 of the Property Code, relating to delivery
of money to urban scholarship funds.
Methodolgy
The trust fund would contain money from gifts and grants and
general revenue if appropriated, and money that previously could
have been deposited in a rural/urban scholarship fund to the
credit of the General Revenue Fund 0001. Under current law,
deposits to rural/urban scholarship funds are capped at $800,000
per year. In 1996, telephone exchange companies deposited $800,000
in these funds and the balance, approximately $2 million, to
the credit of the General Revenue Fund. The potential fiscal
impact of this bill is based on the 1996 experience.
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 Revenue
Gain/(Loss) from
General Revenue
Fund
0001
1998 ($2,000,000)
1998 (2,000,000)
2000 (2,000,000)
2001 (2,000,000)
2002 (2,000,000)
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 ($2,000,000)
1999 (2,000,000)
2000 (2,000,000)
2001 (2,000,000)
2002 (2,000,000)
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
304 Comptroller of Public Accounts
LBB Staff: JK ,RR ,LD