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