LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
                                Revision 1
  
                             February 9, 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.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB140, As Introduced:  negative impact of $(5,878,600) 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.                                                             *
**************************************************************************
  
The bill would require that each institution establish a program to
reimburse military veterans who qualify for tuition exemptions for the
cost of required textbooks and course materials.
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                         $(2,939,300)  *
          *       2003                          (2,939,300)  *
          *       2004                          (2,939,300)  *
          *       2005                          (2,939,300)  *
          *       2006                          (2,939,300)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year         General Revenue Fund           Employees from FY 2001      *
*                      0001                                               *
*  2002                      $(2,939,300)                             0.0 *
*  2003                       (2,939,300)                             0.0 *
*  2004                       (2,939,300)                             0.0 *
*  2005                       (2,939,300)                             0.0 *
*  2006                       (2,939,300)                             0.0 *
***************************************************************************
  
Fiscal Analysis
  
The bill would require institutions to establish programs that reimburse
students who receive tuition exemptions under Section 54.203 of the
Education Code for the cost of required textbooks and materials.  This
analysis assumes an effective date of September 1, 2001.  While the
Higher Education Coordinating Board believes some additional
administrative workload would be added to the institutions, the LBB
believes no additional full-time-equivalent positions would be needed to
implement the provisions of the bill.
  
  
Methodology
  
The Higher Education Coordinating Board estimates the number of qualified
veterans to be 8,398 per year and the average value of books and other
required course materials to be $350 per year, assuming veterans are
enrolling in an average of six hours per semester.
  
  
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, DB