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