LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 19, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2109  by Farrar (Relating to exempting certain higher
               education students from the TASP test based on the
               student's high school grade point average in college
               preparatory courses.), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2109, As Engrossed:  positive impact of $4,850,400 through the      *
*  biennium ending August 31, 2003.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Net Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $2,425,200  *
          *       2003                            2,425,200  *
          *       2004                            2,425,200  *
          *       2005                            2,425,200  *
          *       2006                            2,425,200  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                               $2,425,200 *
         *      2003                                2,425,200 *
         *      2004                                2,425,200 *
         *      2005                                2,425,200 *
         *      2006                                2,425,200 *
         *****************************************************
  
Fiscal Analysis
  
The bill exempts from the Texas Academic Skills Assessment (TASP) test,
high school students who complete the recommended or, advanced high
school curriculum, with a grade point average (GPA) of 3.0 on a 4.0
scale.  Exemption from TASP means some of those students would not be
required to take developmental education.
  
  
Methodology
  
The latest figures available indicate that 73,240 high school students
took the recommended or advanced high school curriculum.  Of this amount,
16, 840 (23%) were exempt from the TASP requirements based on SAT, ACT
or TAAS scores, and 56,400 (77%) did not meet the exemption standards.
Approximately 2/3 of those students (37,600) would take a test for TASP
purposes and pass; 18,800 would need at least one semester of
developmental education. It is assumed that approximately half of these
students would still participate in developmental education, because of
institutional skills assessment.  Assuming 70% (6,580) of these remaining
students would enroll at a community or technical college, the annual
state cost for one developmental education course per student would be
$240 X 6,580 = $1,579,200.  For the remaining 30% enrolling in
universities, the annual state cost would be $300 X 5,640 = $846,000.
Since the bill would exempt all students who completed the recommended or
advanced curriculum with a 3.0 or higher GPA, we can estimate the
exemption of these students would result in annual savings to the state
of $2,425,000, because these students would no longer take the TASP or
enroll in developmental education.
  
  
Local Government Impact
  
Local community college districts would see a corresponding decrease in
developmental education enrollment and locally incurred costs from this
enrollment.
  
  
Source Agencies:   781   Texas Higher Education Coordinating Board
LBB Staff:         JK, CT, PF, DB