LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 27, 2001
  
  
          TO:  Honorable Carlos F. Truan, Chair, Senate Committee on
               Veteran Affairs & Military Installations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB234  by Hawley (Relating to exempting members of the
               armed forces from the Texas Academic Skills Program.), As
               Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB234, As Engrossed:  positive impact of $1,188,360 through the       *
*  biennium ending August 31, 2003.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                             $594,180  *
          *       2003                              594,180  *
          *       2004                              594,180  *
          *       2005                              594,180  *
          *       2006                              594,180  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                                 $594,180 *
         *      2003                                  594,180 *
         *      2004                                  594,180 *
         *      2005                                  594,180 *
         *      2006                                  594,180 *
         *****************************************************
  
Fiscal Analysis
  
The bill would exempt active duty military personnel from Texas Academic
Skills Program (TASP) testing requirements.
  
  
Methodology
  
Savings to general revenue result from reduced developmental education
costs that would arise from active duty military/students being no longer
required to attend developmental education classes.

An estimated 10,500 active duty military personnel enroll as new students
in Texas public higher education institutions each year, all of whom are
required to take the TASP test.  The TASP failure rate is 65.8% or 6,909
military students.  Two thirds of these students would be required by
institutional or Southern Association of Colleges and School (SACS)
policies to enter developmental education even without TASP, leaving
2,303 exempted students.  Of these 2,303 students, 70% would be community
college students at a savings of $240 each, and 30% would be university
students at a savings of $300 each.

Annual total savings to general revenue would be  (1,612 x $240) + (691 x
$300) = $594,180.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   781   Texas Higher Education Coordinating Board
LBB Staff:         JK, RB, CT, DB