LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 13, 1999
  
  
          TO:  Honorable Royce West, Chair, Senate Committee on Higher
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1535  by West, Royce (relating to the creation of the
               Texas Rising Star Scholarship Program for deserving
               junior college and technical institute students),
               Committee Report 1st House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1535, Committee Report 1st House, Substituted:  negative impact     *
*  of $(15,000,000) 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                         (15,000,000)  *
          *       2002                         (15,000,000)  *
          *       2003                         (15,000,000)  *
          *       2004                         (15,000,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                                       $0 *
         *      2001                             (15,000,000) *
         *      2002                             (15,000,000) *
         *      2003                             (15,000,000) *
         *      2004                             (15,000,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would authorize the Texas Rising Star Scholarship Program to
provide assistance to Texas residents attending public junior colleges in
this state.  The governing board of the institution would administer the
program and determine which students were awarded a scholarship.

The bill would require the state to appropriate to participating
institutions matching funds equal to one-half of the amount that the
institution would use to provide scholarships in that fiscal year from
gifts, grants, and donations.
  
  
Methodology
  
Based on historical information on private scholarship funds raised by
community colleges, the cost to the state would be $15 million in
matching funds each year.

Because the bill states, "The Act applies beginning with the 2000-2001
state fiscal year,"  the fiscal implications would begin in fiscal year
2001.
  
  
Local Government Impact
  
Students attending community and junior colleges would benefit from
additional scholarship funds.
  
  
Source Agencies:   781   Higher Education Coordinating Board
LBB Staff:         JK, CT, PF, LD