LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 26, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1270 by Hill (Relating to tuition and fee exemptions
for the children of certain classroom teachers enrolled
at a public institution of higher education.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1270, As Introduced: negative impact of $(31,056,214) 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 $(14,986,004) *
* 2003 (16,070,210) *
* 2004 (17,401,470) *
* 2005 (18,276,298) *
* 2006 (19,189,162) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from Estimated Other *
* 0001 Educational and General Income *
* Account/ GR-Dedicated *
* 0770 *
* 2002 $(14,986,004) $(14,986,004) *
* 2003 (16,070,210) (16,070,210) *
* 2004 (17,401,470) (17,401,470) *
* 2005 (18,276,298) (18,276,298) *
* 2006 (19,189,162) (19,189,162) *
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Fiscal Analysis
The bill authorizes tuition and fee exemptions for students at public
institutions of higher education, who are the children of classroom
teachers with ten or more years of experience.
This legislation would take effect with the fall semester of 2001 or
fiscal year 2002.
Methodology
Based on analysis prepared by the Texas Higher Education Coordinating
Board, an estimated 17,290 students would be eligible for tuition and fee
exemptions. Of this total, 55% or 9,509 students are assumed to attend
universities; the remaining 45%, or 7,781, would attend community
colleges.
The tuition and fee exemptions would result in a reduction of revenue for
universities of nearly $15.0 million beginning in Fiscal Year 2002,
increasing to $19.2 million in Fiscal Year 2006. An equivalent amount of
general revenue funds would be needed to reimburse universities for the
loss of tuition revenue.
Universities would also realize a reduction in non-appropriated tuition
and fee revenue. However, these amounts would not impact State
appropriations.
Local Government Impact
General revenue would not be used to offset the loss of tuition and fee
revenue at community colleges, resulting in a revenue reduction of
$7,602,037 for fiscal year 2002 increasing each year thereafter, as
tuition and fee rates increase.
Source Agencies: 781 Texas Higher Education Coordinating Board, 701
Texas Education Agency
LBB Staff: JK, CT, DB