LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 6, 1999 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB3138 by Naishtat (Relating to the authority of a governing board of a public institution of higher education to reduce tuition or prorate fees charged to a student at that institution), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3138, As Engrossed: positive impact of $0 through the biennium * * ending August 31, 2001. * ************************************************************************** The bill would authorize governing boards to reduce certain tuition when the reduction is part of a program designed to encourage students to take heavier academic loads and/or imporve retention or graduation rates. General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * Other Educational and General * * Income/ GR-Dedicated * * 8022 * * 2000 $(3,900,000) * * 2001 (3,900,000) * * 2002 (3,900,000) * * 2003 (3,900,000) * * 2004 (3,900,000) * ***************************************************** Fiscal Analysis Those general academic institutions who adopt the program would receive less tuition income. Methodology Coordinating Board staff estimated the bill would result in a one percent reduction in tuition collections at institutions. Currently, total annual tuition collections are approximately $392,000,000; so a one percent reduction would be $3.9 million. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 781 Higher Education Coordinating Board, 783 University of Houston System Administration, 720 The University of Texas System Administration, 733 Texas Tech University LBB Staff: JK, CT, LD, DB