LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 16, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 961
Committee on Finance By: Ratliff
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB961 ( Relating
to state formula funding to an institution of higher education
and tuition costs for certain resident doctoral students.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB961-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.
Fiscal Analysis
The bill would allow formula funding for doctoral students for
only the first 100 semester credit hours instead of the current
131 semester credit hours. The governing board of an institution
of higher education would be allowed to charge a resident doctoral
student nonresident tuition for semester credit hours in excess
of 100. The change in the formulas would take effect for the
formulas for FY2000.
Methodolgy
Based on the effective dates in the bill, there would be no
fiscal impact for the 1998-99 biennium.
Lowering the cap
on doctoral hours from 131 semester credit hours to 100 semester
credit hours would reduce the Texas Higher Education Coordinating
Board's formula recommendations by $25 million. For the 1998-99
biennium, the formulas are funded at approximately 88 percent.
Seventy-four percent of the 88 percent is funded from general
revenue. Based on that level of funding the formulas, the estimated
savings to the General Revenue Fund beginning in FY2000 is $8.14
million. These amounts are shown in the tables below. To the
extent, that institutions charged the higher nonresident tuition
for hours above the 100 semester credit hour cap, other educational
and general income would increase.
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
Savings/(Cost)
from General
Revenue Fund
0001
1998 $0
1998 0
2000 8,140,000
2001 8,140,000
2002 8,140,000
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 8,140,000
2001 8,140,000
2002 8,140,000
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: 781 Higher Education Coordinating Board
LBB Staff: JK ,RR ,LD