LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 24, 1997 TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 2159 Committee on Higher Education By: Uher House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2159 ( Relating to granting resident tuition status to children or dependents of certain former Texas residents.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2159-As Introduced The cost of the exemption proposed by this bill would be $2,152 from lost tuition and fees for each university student granted the exemption. Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. There is no data available on the number of families who lived in Texas for over ten years, then leave the state and have dependent children who return to attend school in Texas within 5 years of the families exit from Texas. The amount of tuition and fees exempted per student would be $2,152 at universities and $1,810 at community colleges. This would be a loss in tuition income to the institutions granting the exemptions. The Texas Higher Education Coordinating Board states that total exemptions provided last year were $115.6 million at universities and $10.3 million at community colleges. Because of the large amount of existing exemptions and based on the small number of inquiries received by the Texas Higher Education Coordinating Board regarding the exemption proposed by this bill during the last year, they estimate that the impact of granting resident tuition status to children or dependents of certain former Texas resident would not be significant. However, as the exemption becomes more widely known, it is probable that the cost of the exemption would increase. The cost to local community college districts would be $1,810 from lost tuition and fees for each student granted this exemption. Source: Agencies: 781 Higher Education Coordinating Board 720 University of Texas System Administration LBB Staff: JK ,LP ,LD