LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                             February 5, 2001
  
  
          TO:  Honorable Irma Rangel, Chair, House Committee on Higher
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB125  by West, George "Buddy" (Relating to abolishing
               the Texas Academic Skills Program.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB125, As Introduced:  positive impact of $18,496,000 through the     *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  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                *
          *       2002                           $9,248,000  *
          *       2003                            9,248,000  *
          *       2004                            9,248,000  *
          *       2005                            9,248,000  *
          *       2006                            9,248,000  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                               $9,248,000 *
         *      2003                                9,248,000 *
         *      2004                                9,248,000 *
         *      2005                                9,248,000 *
         *      2006                                9,248,000 *
         *****************************************************
  
Fiscal Analysis
  
The bill abolishes the Texas Academic Skills Program (TASP) and the
requirement that students failing the TASP must participate in
developmental education.
  
  
Methodology
  
Although the bill abolishes TASP, developmental education would still be
undertaken because of the requirements of the Southern Association of
Colleges and Schools (SACS).  Because TASP requirements are more
stringent than SACS, elimination of TASP could be expected to result in a
reduction in developmental education of about 10 percent.  Currently
$91,500,000 is spent each year for formula funded developmental
education; a ten percent reduction would translate into a savings of
$9,150,000.  No change in the number of personnel is expected.

Annual funding ($98,000) appropriated for test fee waivers for needy
students would no longer be necessary.

Funds are currently appropriated to the Coordinating Board to fund the
Developmental Education performance fund.  It is assumed that an
alternative testing mechanism would be used to measure student progress
in developmental education for the allocation of these funds, so no
savings would be realized in this area.
  
  
Local Government Impact
  
Community college districts supplementing state funding for developmental
education and administering the TASP program with local funds could
realize a corresponding ten percent annual savings.
  
  
Source Agencies:   781   Texas Higher Education Coordinating Board
LBB Staff:         JK, CT, DB