LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 4, 1997
TO: Honorable Teel Bivins, Chair IN RE: Senate Bill No. 729
Committee on Education By: Bivins
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB729 ( Relating
to the Texas Academic Skills Program for students at public
institutions of higher education.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB729-As Introduced
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 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 in each skill area and 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; would encourage high
school students who have passed the exit level high school test
to take the TASP test while in public school; and would authorize
appropriations to be made for paying for high school students
to take the test. The bill would require the Coordinating Board
and the Texas Education Agency to provide TASP information to
high school students, parents and faculty.
Methodolgy
The requirement to take the 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 assumed that half the high school sophomores and juniors
who pass the exit level high school exam take the TASP while
in high school and that the academic deficiencies for 10,000
of these students will be addressed in high schools. It is
assumed that about 25 percent attend a university and 75 percent
attend a community college and will take one fewer remedial
course. 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. The estimated cost to general revenue per FTE university
student is $4,356 and per FTE community college student is $2,427.
Additionally, the cost to the local community college taxing
districts is $1,030 per FTE community college student.
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
Savings/(Cost)
from General
Revenue Fund
0001
1998 $0
1998 0
2000 2,909,250
2001 2,909,250
2002 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 2,909,250
2001 2,909,250
2002 2,909,250
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
There would be an estimated savings to community college districts
of $772,500 per year due to fewer students requiring remedial
coursework in the community colleges.
Source: Agencies: 701 Texas Education Agency - Administration
781 Higher Education Coordinating Board
LBB Staff: JK ,LP ,LD