LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 4, 1999 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB526 by Luna, Gregory (Relating to providing tuition payment assistance to certain members of the state military forces attending public or private institutions of higher education), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB526, As Engrossed: negative impact of $(6,753,996) 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. * * * * This version of the bill contains a provision stating the bill does * * not take effect, unless there is a specific appropriation in the * * General Appropriations Act to fund implementation. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(2,251,332) * * 2001 (4,502,664) * * 2002 (4,502,664) * * 2003 (4,502,664) * * 2004 (4,502,664) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2000 $(2,251,332) * * 2001 (4,502,664) * * 2002 (4,502,664) * * 2003 (4,502,664) * * 2004 (4,502,664) * ***************************************************** Technology Impact The Higher Education Coordinating Board indicates the need for a small personal computer system to track tuition assistance awards and to make determinations as required by the bill. Fiscal Analysis The bill would provide tuition assistance to eligible members of the state military forces: the Texas National Guard and the Texas State Guard. The Higher Education Coordinating Board would require additional general revenue to reimburse institutions of higher education for the tuition exemptions authorized by the bill and to award tuition assistance grants to persons as authorized by the bill.. Methodology * The Adjutant General's Department estimates 30 Texas State Guard members and 15% of the Texas National Guard authorized strength will use the tuition assistance per year provided by the bill. * A $69 average cost per semester hour for state-supported, private or independent institutions of higher education is assumed. * A 65% to 35% full-time to part-time enrollment ratio is applied to the number estimated to receive the tuition assistance. * Full-time enrollment is calculated at 12 semester hours and part-time at 6 hours. * The first year of implementation is reduced to 50% participation to account for required start-up efforts. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 401 Adjutant General's Department LBB Staff: JK, CT, TH