LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 3, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB1545 by Uher (Relating to the operation, regulation, administration, and financing of public institutions of higher education.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** Article 1 of this bill would partially implement recommendation ED-4 from the Comptroller's report, e-Texas: Smaller, Smarter, Faster Government. This portion of the bill would simplify and deregulate the procurement process at institutions of higher education. Although institutions could save money under the bill's provisions, it is assumed any funds saved through greater efficiencies would be retained by the institutions, resulting in no significant fiscal impact on the State. The provisions of the bill addressing leave, merit salary increases, and hiring retirees could have an effect on the budgets of institutions of higher education, as well as on the State's retirement systems. Additional information from the institutions is needed to determine the potential cost for these provisions. Any salary increases paid from general revenue would result in retirement benefits equal to six percent of the salary increases. Simplifying reporting requirements of universities could reduce administrative costs. Any funds saved through greater efficiencies would probably remain with the institutions, resulting in no significant fiscal impact upon the State. Allowing institutions of higher education to charge a convenience fee to students using a credit card to pay for tuition, fees and other charges would increase revenues to the institutions. However, these fees would be auxiliary in nature and would not impact State appropriations. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, CT