LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 10, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 591
Committee on Finance By: Gallegos
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB591 ( Relating
to courses and programs at the University of Houston Downtown.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB591-As Introduced FN Revision 1
No fiscal impact to the State is anticipated during the biennium
ending August 31, 1999. However, the State would realize general
revenue costs as the students begin to enroll in fiscal year
2000.
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 authorize the University of Houston - Downtown
to offer graduate programs. The University of Houston - Downtown
will not enroll students prior to fiscal year 2000. Therefore,
no fiscal impact to the State is anticipated during the biennium
ending August 31, 1999.
Methodolgy
It is assumed the first graduate classes will start in Fall
1999. The estimated increases in full-time student equivalents
are 60 students in FY 2000, 120 students in FY 2001, and 200
students in FY 2002. The average general revenue cost for a
student attending graduate programs at a public university is
$5,445.
It is assumed that approximately fifty percent of
the additional students have not attended graduate programs
at another public higher education institution. The remaining
fifty percent would have attended another graduate program at
a public university in the Houston area, and would not result
in additional costs to the State.
The increase in the number
of students attending the University of Houston Downtown could
create a need for additional buildings, capital equipment, and
library materials. However, these costs are eligible for support
through Higher Education Funds allocations, and no general revenue
costs are included.
Additional costs may also be incurred
for planning, faculty recruitment and program development.
Special item funding could be provided for these costs.
The
average salary reported by the University of Houston - Downtown
in its Legislative Appropriation Request is $31,623. Therefore,
it is assumed that the additional full-time equivalent employees
is equal to the estimated increase in salaries expense divided
by the average salary.
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 Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 $0 0.0
1998 0 0.0
2000 (163,350) 5.0
2001 (326,700) 10.0
2002 (544,500) 16.0
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 (163,350)
2001 (326,700)
2002 (544,500)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 783 University of Houston System Administration
781 Higher Education Coordinating Board
LBB Staff: JK ,LP ,DB