LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 7, 2001 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB140 by Wise (Relating to reimbursing veterans for the cost of required textbooks and similar required course materials.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB140, Committee Report 1st House, Substituted: negative impact * * of $(1,388,800) 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 $(694,400) * * 2003 (694,400) * * 2004 (694,400) * * 2005 (694,400) * * 2006 (694,400) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2002 $(694,400) * * 2003 (694,400) * * 2004 (694,400) * * 2005 (694,400) * * 2006 (694,400) * ***************************************************** Fiscal Analysis The bill requires higher education institutions to reimburse military veterans who receive tuition exemptions under Section 54.203 of the Education Code for the cost of required textbooks and materials. Participants must be enrolled for at least 12 semester credit hours during the semester during which the books were purchased, and the books must be turned in to the institution for resale at the end of the semester. Methodology This analysis assumes an effective date of September 1, 2001. The Texas Higher Education Coordinating Board (THECB) estimates that the number of qualified veterans annually is 9,917. Of this amount, it is preseumed that ten percent will participate. The estimated average value of books and required course materials is $700. This translates into a general revenue cost of $694,400 (992 veterans participating X $700 annual average book cost per veteran). Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 781 Texas Higher Education Coordinating Board LBB Staff: JK, CT, KC