LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 23, 2001 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education 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 Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB234, As Introduced: 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, CT, DB