LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 12, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB47 by McClendon (Relating to the automatic admission
of certain undergraduate transfer students.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB47, As Introduced: 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. *
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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:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund General Revenue Fund *
* 0001 0001 *
* 2002 $0 $0 *
* 2003 0 0 *
* 2004 1,167,072 0 *
* 2005 2,344,144 0 *
* 2006 2,344,144 0 *
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Technology Impact
N/A
Fiscal Analysis
The 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 grade point
average 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 Texas Higher Education 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 per year, 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 might revise admission
policies to accommodate the students admitted under this provision.
Local Government Impact
Local community college districts would incur costs from increased
enrollment, but these costs would be offset by tuition increases and
state financial support.
Source Agencies: 781 Texas Higher Education Coordinating Board, 783
University of Houston System Administration, 720
The University of Texas System
LBB Staff: JK, CT, DB, HM