LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 4, 1999
  
  
          TO:  Honorable Carlos Truan, Chair, Senate Committee on
               Veteran Affairs & Military Installations
  
        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 institutions of higher
               education.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB526, As Introduced:  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.                                                             *
**************************************************************************
  
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.
  
  
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 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:   
LBB Staff:         JK, CT