LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 17, 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 or private institutions
of higher education), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB526, Committee Report 1st House, Substituted: 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, 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:
LBB Staff: JK, TH, CT