LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 20, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1465 by Kitchen (Relating to the authority of a public
junior college to set reduced tuition rates.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1465, 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 (14,000,000) *
* 2005 (14,000,000) *
* 2006 (28,000,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $0 *
* 2003 0 *
* 2004 (14,000,000) *
* 2005 (14,000,000) *
* 2006 (28,000,000) *
*****************************************************
Fiscal Analysis
The bill permits a public community/junior college governing board to
establish a tuition rate for selected courses at rates lower than those
set by statute, for the purposes of making efficient use of resources or
"other good cause." The bill provides that lowering the tuition rate
does not affect a college's proportionate share of state appropriations.
There would be no fiscal impact on general revenue for the 2002-2003
biennium, since the base period for formula funding will not be
affected. Subsequent base periods could reflect an increase in contact
hours.
Methodology
The fiscal impact to general revenue, depends on how extensively the
exception provision is exercised.. We assume the opportunity to lower
tuition for some courses is acted upon by enough governing boards to
result in a gradual increase of enrollment adding up to a two percent
increase in the base period for funding the 2004-2005 and 2006-2007
biennia. Since the state provided $737,727,315 for fiscal year 2001,
general revenue expenditures would increase by about $14 million each
year of the 2004-2005 biennium and $28 million each year of the
2006-2007 biennium.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, DB