LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 5, 1997
TO: Honorable Teel Bivins, Chair IN RE: Senate Bill No. 148
Committee on Education By: Bivins
Senate
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-As Introduced
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 consisting of at least 42 semester credit hours. A student who
successfully completes the core curriculum at an institution of higher education
and transfers to another institution of higher education could not be required to
take additional core courses. Additionally, the bill would require the Coordinating
Board to develop transfer curricula. A student who successfully completes, at
one institution, a transfer curriculum developed by the Board for a particular field
of study and transfers to another institution could not be required to complete
additional lower division requirements for the same field of study.
The bill would require that the Coordinating Board adopt rules to implement the
provisions of the bill by September 1, 1998.
The bill is similar to the core curriculum recommendations part of Texas Performance
Review, ED 11, Eliminate Funding for Excessive Undergraduate Credit Hours.
Methodolgy
Based on data from the Higher Education Coordinating Board, approximately
36,000 students transfer from Texas community colleges to universities each
year. It is assumed for purposed of this analysis that each of these students
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. The net result would be the equivalent of 7,200
additional FTE students at community colleges and the equivalent of 10,800
fewer 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 would
take fewer hours, it is estimated that the eventual savings to the general revenue
fund would be $46.4 million per year (10,800 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 community college students
is approximately $2,400. The cost to the general revenue fund of 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 the bill in July 1998. Therefore, community colleges would begin
seeing increased enrollments in fiscal year 1999. However, universities would
begin seeing decreased enrollments as those students transfer to the
universities beginning in fiscal year 2000.
Under the present method of funding community colleges using base period
enrollment, increased enrollment in community colleges in fiscal year 1999
would not affect appropriations to the community colleges for the 1998-99
biennium. Similarly, it is assumed that the savings from decreased university
enrollments would be phased in during the 2000-2001 biennium as students
begin meeting the transfer curriculum requirements and are taking fewer
hours at the universities.
It is assumed that the 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) 23,220,000
2001 (17,280,000) 23,220,000
2002 (17,280,000) 46,440,000
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 5,940,000
2001 5,940,000
2002 29,160,000
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: 720 University of Texas System Administration
781 Higher Education Coordinating Board
304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JK ,LP ,LD