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
  
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*  No significant fiscal implication to the State is anticipated.        *
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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