LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 7, 1995 TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 1146 Committee on Higher Education By: Mowery House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1146 (Relating to tuition and fees at a public institution of higher education for a nonresident student holding a competitive academic scholarship) this office has determined the following: The bill would repeal V.T.C.A., Education Code Section 54.064 which waives the difference between resident and nonresident tuition charges for nonresident students who are awarded a competitive academic scholarship valued at $200 or more for any part or all of an academic year. The bill would exempt junior and senior college students from nonresident tuition who held an academic scholarship prior to January 1, 1995 for the remainder of their program of study but not beyond the fall semester of 1997. Currently, approximately 9,000 students attending public universities and health-related institutions are receiving such waivers. Estimates of savings and increased tuition revenue indicated below assume that fewer nonresident students will choose to attend Texas colleges and universities, thus decreasing the need for formula funding based on semester credit hours. In addition, the estimates below assume that 1/3 to 1/4 of the students currently receiving waivers will continue their course of study after they no longer qualify for resident tuition charges. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Savings Probable Gain to Year from General Local Funds Held Revenue Fund 001 Outside the State Treasury 1996 $9,000,000 $2,400,000 1997 17,800,000 4,700,000 1998 26,600,000 7,100,000 1999 26,600,000 7,100,000 2000 26,600,000 7,100,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Higher Education Coordinating Board LBB Staff: JK, MK, WRR