LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 1, 1999 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB491 by Lewis, Glenn (Relating to exempting peace officers enrolled in a criminal justice program from tuition and fees charged by a public institution of higher education), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB491, As Introduced: negative impact of $(2,402,666) through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(1,187,137) * * 2001 (1,215,529) * * 2002 (1,215,529) * * 2003 (1,215,529) * * 2004 (1,215,529) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund for Tuition * * Exemptions at Universities * * 0001 * * 2000 $(1,187,137) * * 2001 (1,215,529) * * 2002 (1,215,529) * * 2003 (1,215,529) * * 2004 (1,215,529) * ***************************************************** Technology Impact Adding this exemption program would require each university and community college to adjust their systems to track this exemption. Fiscal Analysis The bill would provide an exemption from tuition and fees to peace officers who are enrolled in a degree or certificate program in criminal justice at an institution of higher education. The peace officer must be employed by a political subdivision of the state and the course must satisfy a requirement for the degree or certificate program. Methodology There are 56,369 peace officers who could take advantage of this program. We assume that two percent of those eligible would take advantage of the program each year and that 225 would be new students. We estimate that 55 percent would attend a community college and 45 percent would attend a university. The amount of general revenue needed to replace lost tuition revenue at universities and for the cost of additional students at community colleges and universities would be $1,187,137 in fiscal year 2000 and increase to $1,215,529 in fiscal year 2004. General revenue would not be used to offset the loss of fee revenue by universities, thus costing universities $691,041 in fiscal year 2000, $724,503 in fiscal year 2001, $788,892 in fiscal year 2002, $856,830 in fiscal year 2003, and $927,810 in fiscal year 2004. Local Government Impact General revenue would not be used to offset the loss of tuition and fee revenue by community colleges, resulting in community college losses of $717,712 in fiscal year 2000, $744,992 in fiscal year 2001, $774,132 in fiscal year 2002, $803,892 in fiscal year 2003, and $836,132 in fiscal year 2004. Source Agencies: LBB Staff: JK, CT, PF, DB