LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 7, 1997 TO: Honorable Teel Bivins, Chair IN RE: Senate Bill No. 729, Committee Report 1st House, Substituted 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-Committee Report 1st House, Substituted 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 requires 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 LBB Staff: JK ,LP ,LD