LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 15, 1997
TO: Honorable Irma Rangel, Chair IN RE: Senate Bill No. 148, Engrossed
Committee on Higher Education By: Bivins/et al.
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB148 ( Relating
to the development of certain curricula by the Texas Higher
Education Coordinating Board.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by SB148-Engrossed
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would require the Texas Higher Education Coordinating
Board to develop a core curriculum of at least 42 semester credit
hours. The bill would guarantee that a student that successfully
completes the core curriculum at an institution of higher education
and transfers to another institution of higher education would
not be required to take additional core courses. Additionally,
the bill would require the Coordinating Board to develop field
of study curricula and would require the transferability of
those courses when fully completed at a given institution.
The bill would require the Coordinating Board to establish policies
and procedures for dispute resolution.
The bill would require
the Coordinating Board to adopt rules to implement the provisions
of the bill by September 1, 1998.
Methodolgy
Based on data from the Texas Higher Education Coordinating Board,
approximately 36,000 students transfer from Texas community
colleges to Texas universities, and approximately 15,000 students
transfer from one Texas university to another Texas university
each year. It is assumed for purposes of this analysis that
each of the transfers from community colleges would take an
additional six semester credit hours at a community college
before transferring but would take nine fewer semester credit
hours at the university after transfer. Additionally, it is
assumed that each of the university to university transfer
students will take three fewer hours at their new university
because less duplication of courses would be required. The
net result would be the equivalent of 7,200 additional FTE community
college students and the equivalent of 12,300 fewer FTE university
students.
The cost to the general revenue fund of one FTE
university student is approximately $4,300. Because university
students who transfer from community colleges or other universities
would take fewer hours, it is estimated that the eventual savings
to the general revenue fund would be $52.9 million per year
(12,300 FTE students x $4,300). These savings would be partially
offset by the increase in hours taken at community colleges.
The cost to the general revenue fund for one FTE community
college student is approximately $2,400. The cost to the general
revenue fund for the additional 7,200 FTE community college
students is estimated at $17.3 million.
It is assumed that
the Coordinating Board would adopt rules implementing the provisions
of this bill in July 1998. Therefore, community colleges would
begin seeing increased enrollments in fiscal year 1999. Under
the present method of funding community colleges using base
period enrollment, increased enrollment at community colleges
in fiscal year 1999 would not affect appropriations to the community
colleges for the 1998-99 biennium. Similarly, the universities
would begin seeing some decrease in enrollment beginning in
1999 with further decreases in the 2000-2001 biennium. It is
assumed that the only part of the savings from decreased university
enrollments would be reflected in the base period enrollment
data used to calculate funding for the 2000-2001 biennium.
It is assumed that costs of developing the core curriculum
at the Coordinating Board and the costs of implementation at
the institutions would have no significant fiscal impact.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable
Savings/(Cost) Savings/(Cost)
from General from General
Revenue Fund Revenue Fund
0001 0001
1998 $0 $0
1998 0 0
2000 (17,280,000) 26,445,000
2001 (17,280,000) 26,445,000
2002 (17,280,000) 52,890,000
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 9,165,000
2001 9,165,000
2002 35,610,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The cost to local community college taxing districts of one
FTE student is estimated at $1,030. The cost of an additional
7,200 FTE students would be approximately $7.4 million per year
beginning in fiscal year 1999.
Similar annual fiscal implications
would continue as long as the provisions of this bill are in
effect.
Source: Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
781 Higher Education Coordinating Board
LBB Staff: JK ,LP