LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
                                Revision 1
  
                              April 6, 1999
  
  
          TO:  Honorable Irma Rangel, Chair, House Committee on Higher
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3138  by Naishtat (Relating to the authority of a
               governing board of a public institution of higher
               education to reduce tuition or prorate fees charged to a
               student at that institution), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3138, As Introduced:  positive impact of $0 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.                                                             *
*                                                                        *
**************************************************************************
  
The bill would authorize governing boards to reduce certain tuition when
the reduction is part of a program designed to encourage students to
take heavier academic loads and/or imporve retention or graduation
rates.
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                  Other Educational and General     *
         *                      Income/ GR-Dedicated          *
         *                              8022                  *
         *      2000                             $(3,900,000) *
         *      2001                              (3,900,000) *
         *      2002                              (3,900,000) *
         *      2003                              (3,900,000) *
         *      2004                              (3,900,000) *
         *****************************************************
  
Fiscal Analysis
  
Those general academic institutions who adopt the program would receive
less tuition income.
  
  
Methodology
  
Coordinating Board staff estimated the bill would result in a one percent
reduction in tuition collections at institutions.  Currently, total
annual tuition collections are approximately $392,000,000; so a one
percent reduction would be $3.9 million.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   733   Texas Tech University
LBB Staff:         JK, CT, LD, DB