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