LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 6, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2483 by Wilson (Relating to the treatment of Texas
residents in higher education admissions.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2483, As Introduced: negative impact of $(9,967,734) 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 $(4,858,749) *
* 2003 (5,108,985) *
* 2004 (5,366,172) *
* 2005 (5,630,310) *
* 2006 (5,915,301) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Gain/(Loss) Probable Savings/(Cost) from *
* Year from Estimated Other General Revenue Fund *
* Educational and General Income 0001 *
* Account/ GR-Dedicated *
* 0770 *
* 2002 $(4,858,749) $(4,858,749) *
* 2003 (5,108,985) (5,108,985) *
* 2004 (5,366,172) (5,366,172) *
* 2005 (5,630,310) (5,630,310) *
* 2006 (5,915,301) (5,915,301) *
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Fiscal Analysis
The bill require that all public institutions of higher education, in
admitting students to any of their certificate or degree programs, make
a written admission offer to all eligible Texas residents meeting
minimum admissions requirements, before they offering admission to a
nonresidents.
Methodology
Based on analysis prepared by the Texas Higher Education Coordinating
Board, it is estimated that only two institutions currently have more
applicants than they can accommodate -- The University of Texas at Austin
and Texas A&M. It is assumed that the institutions could absorb more
students on the graduate level without displacing nonresident students.
These two institutions reported 932 first-time entering nonresident or
foreign undergraduates in fall 2000. It is assumed that three-fourths of
those students (700) will enroll in colleges in other states. Since
nonresident students pay a higher rate of tuition, this would represent a
loss in tuition revenues of $4.9 million (700 students X $6,951 in lost
tuition per student) beginning in fiscal year 2000. It is estimated that
the number of nonresident students choosing not to attend Texas
institutions would increase each year. This increase would cause the
tuition loss to increase by five percent per year for the next six years.
It is assumed that general revenue would be provided for the loss of
tuition revenue.
Only a shift in the distribution of enrollment between resident and
nonresident students is anticipated. No decrease in overall enrollment
is expected.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, DB, HM