LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 3, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1141  by West, Royce (Relating to eliminating the Texas
               Academic Skills Program and allowing institutions to
               select a test to assess students' proficiency and need
               for remediation.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1141, As Introduced:  positive impact of $846,000 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.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Net Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                             $748,000  *
          *       2003                               98,000  *
          *       2004                              748,000  *
          *       2005                               98,000  *
          *       2006                              748,000  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                                 $748,000 *
         *      2003                                   98,000 *
         *      2004                                  748,000 *
         *      2005                                   98,000 *
         *      2006                                  748,000 *
         *****************************************************
  
Fiscal Analysis
  
The bill eliminates the TASP test, but continue to allow institutions of
higher education to assess entering undergraduate students and set their
own standards for developmental education.
  
  
Methodology
  
The bill would eliminate the TASP test.  Fee waivers currently granted to
students would no longer be needed, saving $98,000 per year.  This
fiscal note assumes an additional savings of $650,000 in the first year
of each biennium related to the Texas Higher Education Coordinating
Board's funding of the Developmental Education Accountability Pilot
Programs.  Because allocation of funds in the pilot programs is based on
student performance on a uniform statewide assessment instrument, we
assume elimination of TASP would eliminate the basis for this funding.

Although institutions would still conduct internal assessment of incoming
students, elimination of the TASP and subsequent mandatory developmental
education could result in a 10 percent decrease in course based
developmental education - thus reducing developmental education expenses
by $9,150,000 each year.  However, these amounts would not impact State
appropriations.  Since appropriations for formula amounts are based on
historical enrollment, this reduction in developmental education course
work would not be incurred until fiscal year 2004.  Further, it is
assumed that students who would have otherwise been enrolled in
developmental education courses would instead enroll in for credit
undergraduate courses, resulting in no overall reduction in course work
for state formula funding purposes.

To the extent that some students could begin earning courses for credit
rather than non-credit developmental education courses, these students
could graduate sooner, but these savings would not be incurred during
the time period covered by this fiscal note.
  
  
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, PF, DB