LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
March 20, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2276 by Giddings (Relating to tuition rebate
incentives for persons who complete certain degree and
certificate programs without excessive credit hours.),
As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2276, 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. *
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This note is revised based on corrected data provided by the Texas Higher
Education Coordinating Board.
General Revenue-Related Funds, Five-Year Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 95,164 *
* 2005 0 *
* 2006 60,110 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund General Revenue Fund *
* 0001 0001 *
* 2002 $0 $0 *
* 2003 0 0 *
* 2004 (1,131,500) 1,226,664 *
* 2005 0 0 *
* 2006 (1,292,500) 1,352,610 *
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Fiscal Analysis
The bill extends the state's current tuition rebate program to students
efficiently completing a 60-hour degree at community colleges. If a
community college student efficiently completes a degree or certificate
requiring at least 60 hours' college work in no more than three hours
beyond the basic requirements of the degree or certificate, he/she will
receive a $500 tuition rebate.
The bill provides for general revenue reimbursement of rebates paid from
local funds during the subsequent appropriation. Under this provision,
there would be no impact to general revenue until appropriations are
made for fiscal year 2004.
Methodology
In fiscal year 2000, roughly 41,000 associates degrees and certificates
were awarded by Texas community and technical colleges. Certificates
accounted for 16,000 of the degrees awarded. Because the certificates
require fewer than 60 hours for completion, such recipients would not
qualify for the rebate. Of the remaining 25,000 associate degree
recipients, all of their programs require at least 60 hours. The Texas
Higher Education Coordinating Board (THECB) estimates that five percent
of these students would qualify for rebates and this number would
increase by five percent per year. This estimation results in the
following projections of rebates granted and paid by local institutions.
Fiscal Year Rebates
Local Cost
2002 1,250
$625,000
2003 1,313
$656,500
2004 1,378
$689,000
2005 1,447
$723,500
2006 1,519
$759,500
The cost of rebates would be offset by reductions in the number of
courses taken by students desiring to qualify for the rebates. THECB
estimates the related savings of $1,226,664 in formula funding for fiscal
year 2004 and $1,352,610 in formula funding for fiscal year 2006.
Since the bill reimburses local institutions from appropriations at the
beginning of the biennium, the net costs to general revenue would be
$1,131,500 in fiscal year 2004 and $1,292,500 in fiscal year 2006.
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, PF, DB