LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
April 18, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB152 by Brown, Fred (Relating to a pilot program to
provide for reduced undergraduate tuition during a summer
term or session at certain institutions of higher
education. ), Committee Report 1st House, Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB152, Committee Report 1st House, Substituted: negative impact *
* of $(9,276,920) 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. *
**************************************************************************
(This note was revised to correct errors in the bill caption.)
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(4,535,214) *
* 2003 (4,741,706) *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Revenue Gain/(Loss) Probable Savings/(Cost) from *
* Year from Estimated Other General Revenue Fund *
* Educational and General Income 0001 *
* Account/ GR-Dedicated *
* 0770 *
* 2002 $(4,535,214) $(4,535,214) *
* 2003 (4,741,706) (4,741,706) *
* 2004 0 0 *
* 2005 0 0 *
* 2006 0 0 *
***************************************************************************
Fiscal Analysis
If passed, this bill would reduce tuition rates for summer terms at Texas
A&M University and Texas A&M University Kingsville. The reduced tuition
rates would be effective starting with the summer terms of fiscal year
2002 and ending January 1, 2004.
Methodology
Based on analysis by the Texas Higher Education Coordinating Board, it is
estimated that 12,699 full-time students would be eligible for reduced
tuition. The estimated reduction in tuition rates is $357 for 2002 and
$373 for 2003, and the estimated reduction in tuition revenue is
$4,535,214 for 2002 and $4,741,706 for 2003. Based on the following
language, "This section applies only if the legislature specifically
appropriates money to cover the tuition revenue lost", it is assumed
that an equivalent amount of general revenue funds would be needed to
reimburse universities for the loss of both appropriated and designated
tuition revenue.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 710 The Texas A&M University System, 781 Texas
Higher Education Coordinating Board
LBB Staff: JK, CT, DB