LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 6, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1942 by Delisi (Relating to permitting certain
military dependents to qualify for automatic admission to
general academic teaching institutions.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1942, As Introduced: negative impact of $(482,400) 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 $0 *
* 2003 (482,400) *
* 2004 (1,299,671) *
* 2005 (1,897,407) *
* 2006 (2,418,479) *
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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 $0 $0 *
* 2003 (482,400) (482,400) *
* 2004 (1,299,671) (892,440) *
* 2005 (1,897,407) (1,245,798) *
* 2006 (2,418,479) (1,555,077) *
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Fiscal Analysis
The bill amends automatic admissions provisions to allow automatic
admission under certain conditions of a spouse or dependent child of an
armed forces member, who is not assigned to duty in Texas, but who has
previously resided in Texas. It would also authorize students admitted
under this provision to pay resident tuition rates.
The provision would become effective beginning with admissions for the
2002 fall semester, or fiscal year 2003.
Methodology
Based on analysis prepared by the Texas Higher Education Coordinating
Board, it is assumed that 200 students would qualify for the provision.
It is further assumed that 50 percent, or 100 students, would be new
students who would not have otherwise attended a public university.
The amount of tuition exemptions at universities is estimated to be
$595,400 in fiscal year 2003 increasing to $1,919,346 in fiscal year
2006. This amount would be offset by resident tuition paid by new
students who would not have otherwise attended universities, and is
estimated to be $113,000 in fiscal year 2003 increasing to $364,270 in
fiscal year 2006. It assumed that General Revenue would be needed to
replace lost tuition revenue at universities which is estimated to be
$482,400 in fiscal year 2003 increasing to $1,555,077.
Universities would also realize a reduction in non-appropriated tuition
revenue. However, these amounts would not impact State appropriations.
Since appropriations for university formula amounts are based on
historical enrollment, additional formula costs would not be incurred
until fiscal year 2004. The additional General Revenue formula costs for
new students is estimated to be $407,231 beginning with fiscal year
2004 and increasing to $863,402 in fiscal year 2006.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 783 University of Houston System Administration,
768 Texas Tech University System, 781 Texas
Higher Education Coordinating Board, 710 The Texas
A&M University System
LBB Staff: JK, CT, HM, DB