LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 19, 2001
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB47 by McClendon (Relating to the automatic admission
of certain undergraduate transfer students.), As Engrossed
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB47, As Engrossed: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
The bill grants automatic admission to general academic teaching
institutions to students who complete community college degree or
certificate programs with a grade point average (GPA) of 3.0 or higher.
The committee substitute adds the provision that admission to a specific
institution is contingent upon the institution having space available for
the admission of additional students. Also the automatic admission to
the institution does not include automatic admission to a particular
school or program.
The effective date would be for admission of students to the 2002 fall
semester.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 1,167,072 *
* 2005 2,344,144 *
* 2006 2,344,144 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $0 *
* 2003 0 *
* 2004 1,167,072 *
* 2005 2,344,144 *
* 2006 2,344,144 *
*****************************************************
Fiscal Analysis
This bill grants automatic admission to general academic teaching
institutions (universities) to students who complete community college or
technical institute degree or certificate programs with a GPA of 3.0 or
higher.
The effective date would be for admission of students to the 2002 fall
semester or fiscal year 2003.
Methodology
The Coordinating Board assumes that five percent of new students or 2,157
who currently enroll in universities would choose to instead enroll in
community colleges to take advantage of this program. Since formula
funding is based on historical enrollment, any savings would not be
realized until fiscal year 2004. The savings to General Revenue of
enrolling a student in a community college instead of a university is
$541, resulting in an estimated savings of (2,157)x($541) = $1.17 million
in fiscal year 2004 and $2.33 million in fiscal year 2005.
It is assumed that the students who are admitted to universities under
this provision would have attended other universities rather than start
at a community or technical college. Therefore, the provision could
effect the distribution of students among universities but would not
result in additional enrollment or significant enrollment costs to the
state.
Due to capacity concerns, some universities may revise admission policies
in order to accommodate the students admitted under this provision.
Local Government Impact
Local community college districts would incur costs related to increased
enrollment in community colleges, but these would be offset by increases
to tuition and state support.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, DB, HM