LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
                                Revision 1
  
                              April 19, 1999
  
  
          TO:  Honorable Irma Rangel, Chair, House Committee on Higher
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3447  by Swinford (Relating to the creation of a
               student endowment scholarship and internship  program),
               As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3447, As Introduced:  negative impact of $(4,850,000) 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                                   $0  *
          *       2001                          (4,850,000)  *
          *       2002                          (4,900,000)  *
          *       2003                          (4,900,000)  *
          *       2004                          (4,950,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                                       $0 *
         *      2001                              (4,850,000) *
         *      2002                              (4,900,000) *
         *      2003                              (4,900,000) *
         *      2004                              (4,950,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would allow a general academic teaching institution to
participate in the Student Endowment Scholarship and Internship Program.
The student body at an institution would have to approve an additional
fee to participate in the program.  These institutions would have until
September 1, 2004 to elect to participate in the program.

The state would provide a matching grant to participating institutions.
For a five-year period beginning with the fiscal year after an
institution holds the election, the legislature would appropriate an
amount not to exceed 50 cents for each of the total number of semester
credit hours in which students are enrolled at the participating
institution during an academic year.  The state appropriation could not
exceed the revenue generated from the additional fee by the institution
for that year.

The House, in the general appropriations act, has provided $100 million
for the biennium for student financial aid.
  
  
Methodology
  
For purposes of this fiscal note, it is assumed that by fiscal year 2001.
All general academic institutions in the state would have approved the
additional fee in fiscal year 2000.  Also, it is assumed the state would
make the maximum match of 50 cents per the total number of semester
credit hours at the institutions.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   781   Higher Education Coordinating Board
LBB Staff:         JK, CT, PF