LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 9, 1997
         
         
      TO: Honorable Teel Bivins, Chair            IN RE:  Senate Bill No. 1907
          Committee on Education                              By: Bivins
          Senate
          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-As Introduced
         
No fiscal implication to the State is anticipated. 
         

         
 
The bill would amend the Education Code to allow the governing 
boards of institutions to set tuition rates within specified 
ranges.  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 allow governing boards 
to set graduate tuition rates equal to the minimum undergraduate 
rate but no more than 1.5 times the maximum undergraduate rate. 
The bill would allow the governing board of universities to 
set undergraduate resident tuition for the 1997-98 academic 
year between $34 and $68 per semester credit hour; between $36 
and $72 per semester credit hour for the 1998-99 academic year; 
between $38 and $76 per semester credit hour for the 1999-2000 
academic year; and between $40 and $80 per semester credit hour 
for the 2000-2001 academic year.

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 bill would modify the 
range for Texas Public Education Grants set aside to not less 
than nine percent to not more than 15 percent of resident tuition.

The 
change to tuition would take effect for the 1997 fall semester.

Because 
the bill would maintain the current minimum charges for tuition 
and would designate any amounts over the minimum as institutional 
funds that are not to be accounted for in the appropriations 
process, there would be no impact on general revenue funding 
 to institutions. 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   781   Higher Education Coordinating Board
                                         304   Comptroller of Public Accounts
                                         304   Comptroller of Public Accounts
                      LBB Staff:   JK ,LP ,LD