LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 2, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3050 by Rangel (Relating to the establishment and
operation of the Toward EXcellence, Access, & Success
(TEXAS) II grant program.), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3050, Committee Report 1st House, Substituted: negative impact *
* of $(27,651,517) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(10,266,150) *
* 2003 (17,385,367) *
* 2004 (18,081,878) *
* 2005 (18,806,528) *
* 2006 (19,560,453) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Change in Number of *
* Year Savings/(Cost) from Savings/(Cost) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* for Grants for Administration *
* 0001 0001 *
* 2002 $(10,121,150) $(145,000) 4.0 *
* 2003 (17,240,367) (145,000) 4.0 *
* 2004 (17,936,878) (145,000) 4.0 *
* 2005 (18,661,528) (145,000) 4.0 *
* 2006 (19,415,453) (145,000) 4.0 *
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Fiscal Analysis
The bill establishes the Toward EXcellence, Access, and Success (TEXAS)
grant II program for students, attending a public two-year institution
and who are not eligible for a TEXAS grant. Students would be required to
meet financial need requirements defined by the Texas Higher Education
Coordinating Board (THECB) and enroll at least one-half of a full course
load.
The grants would be the average statewide amount of tuition and required
fees that a resident student enrolled full-time would be charged at a
public junior college or public technical institute.
THECB would administer the program. The total amount of the grants could
not exceed the funds made available for the program.
Methodology
"Financial need" is based on the percentage of students whose expected
family contribution is zero.
Estimates of the number of students to meet the academic provisions for
TEXAS grants II were made based on the number of high school students,
who are not expected to complete the recommended or advanced curriculum.
Historical information on the rate of high school graduates enrolling in
two-year institutions was used to determine the number of students
receiving grants. This fiscal note assumes that retention rates would
increase.
This note does not include the need for additional appropriations during
the next biennium to meet the demand for formula funding to serve
additional students.
Local Government Impact
This bill would provide additional financial assistance to students at
community colleges.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, DB, PF, KC