LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
March 14, 1995
TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 1792
Committee on Higher Education By: Junell
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
1792 (Relating to the tuition charged to nonresident students at
certain public institutions of higher education) this office has
determined the following:
The bill would set the nonresident undergraduate tuition rate at
Texas public universities and health-related institutions at an
amount equal to the average tuition charged Texas residents in
the five most populous states (other than Texas). In academic
year 1994-95, the average tuition charged a Texas resident taking
30 hours in California, New York, Florida, Pennsylvania, and
Illinois was $222 per hour. The nonresident tuition rate in
Texas is currently $176 per hour.
The fiscal implications shown below are based on the following
assumptions. First, that approximately 10 percent of nonresident
students would decide not to attend college in Texas due to
increased nonresident tuition. The anticipated decline in
students would reduce the demand for general revenue formula
funding. Additional savings to general revenue are anticipated
due to increased tuition revenue at the institutions. Assuming
continuation of the current policy of using an "all funds"
funding methodology for universities, increases in tuition
income offset general revenue funding. Thus, as tuition income
from nonresident students increases, less general revenue would
be needed to meet the funding requirements of the public
universities.
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 Savings Total Probable
Year to General to General Savings to General
Revenue Fund 001 Revenue Fund 001 Revenue Fund 001
(Enrollment ( Tuition
Decline) Increase)
1996 $10,900,000 $25,650,000 $36,550,000
1997 11,020,000 25,920,000 36,940,000
1998 11,060,000 26,010,000 37,070,000
1999 11,090,000 26,100,000 37,190,000
2000 11,130,000 26,190,000 37,320,000
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