LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

Revision 2

April 21, 2003

TO:	Honorable Frank Corte, Chair, House Committee on Defense Affairs and State-Federal Relations
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB261 by Hupp (Relating to the eligibility of armed forces personnel and their family members to pay tuition and fees at the rate provided to Texas residents.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would allow members of the U.S. armed forces or their child or spouse who is statutorily entitled to pay resident tuition to continue paying resident tuition in any subsequent term or semester while the person is continuously enrolled in the same degree or certificate program. A student would not be required to be enrolled in a summer term to remain continuously enrolled in a degree or certificate program.

Based on the most recent information available from the Higher Education Coordinating Board, the estimated costs to the state would be $81,855 in fiscal year 2004 and $85,948 in fiscal year 2005 to offset expected losses in tuition revenue.  The impact would be $99,495 by fiscal year 2008.  The institutions most likely to be affected by the legislation are Tarleton State University, The University of Texas at San Antonio, and Central Texas College. 

Local Government Impact

No significant fiscal implication to units of local government is anticipated.  There would be a loss of tuition revenue at community colleges; however, the amount would not be significant based on participation rates assumed by the Coordinating Board.  General Revenue would not be used to offset the loss of revenue at community colleges.

Source Agencies:	781 Higher Education Coordinating Board
LBB Staff:	JK, CT, SD, WK, PF, MG