LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 19, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  Senate Bill No. 1907, Committee Report 2nd House, Substituted
          Committee on Higher Education                              By: Bivins
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1907 ( Relating 
to tuition and fees charged by public institutions of higher 
education, including the redesignation of certain fees as tuition.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1907-Committee Report 2nd House, Substituted
         
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 amend the Education Code to reclassify the building 
use fee as tuition; would specify the maximum charges; and would 
exclude it from the Texas Public Education grants.  The bill 
would exclude tuition above the minimum level from educational 
and general funds and would require that it is not accounted 
for in determining an institution's general revenue appropriation. 
 

The bill would increase the resident tuition at a law school 
from $75 per semester credit hour to $80 per semester credit 
hour and would set nonresident law tuition at the same amount 
that can be charged a nonresident graduate student.

The bill 
would authorize a governing board to waive fees under certain 
circumstances including for students enrolled only in distance 
learning courses and for students that cannot reasonably be 
expected to use the services, provided that waiver of the fees 
will still enable the institution to provide the service or 
facility and meet any debt obligations.

The bill would authorize 
governing boards to fix and collect rentals, rates, and charges 
from students and other for use of facilities.  This revenue 
could be used towards paying bonds.  

The change to tuition 
would take effect for the 1997 fall semester.
 
Methodolgy
 
Because the bill reclassifies the building use fee as tuition 
but does not authorize an increase in the total tuition that 
an institution could charge as compared to the amount that an 
institution could previously have charged for tuition and building 
use fees, there would be no impact on the amount of designated 
funds for institutions of higher education.

The bill would 
increase the amount of tuition charged at a law school by $5 
per semester credit hour.  The semester credit hours during 
the base period for law totaled 109,465.  The increase in Other 
Educational and General Income (Other E&G) amounts are shown 
in the table below.  This increase in Other E&G would result 
in a redistribution of general revenue from the law schools 
under the all funds methodology.  The institutions with law 
schools are UT Austin, University of Houston, Texas Southern 
University, and Texas Tech University.

It is assumed that 
the fee waivers for distance learning courses and for students 
that cannot use the facility or services would not have a significant 
fiscal impact on the institutions.
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 Revenue   
            Gain/(Loss) from                                                                              
            Other                                                                                         
            Educational and                                                                               
            General Income/                                                                               
            GR-Dedicated                                                                                  
            8022                                                                                           
       1998          $547,325                                                                        
       1998           547,325                                                                        
       2000           547,325                                                                        
       2001           547,325                                                                        
       2002           547,325                                                                        
 
 
         Net Impact on General Revenue Related Funds:
 

 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998                   $0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
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:   
                                         
                      LBB Staff:   JK ,LP ,LD