LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
May 21, 2001
TO: Honorable James E. "Pete" Laney, Speaker of the House,
House of Representatives
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2531 by Junell (Relating to tuition rates at public
institutions of higher education.
), As Passed 2nd House
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2531, As Passed 2nd House: positive impact of $26,032,628 *
* 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 Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 26,032,628 *
* 2004 52,065,256 *
* 2005 78,097,884 *
* 2006 104,130,512 *
****************************************************
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 $9,023,040 *
* 2003 26,032,628 35,055,668 *
* 2004 52,065,256 61,088,296 *
* 2005 78,097,884 87,120,924 *
* 2006 104,130,512 113,153,552 *
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Fiscal Analysis
The bill increases the resident tuition rate charged by general academic
teaching institutions (universities) by $2.00 per semester credit hour
each academic year from 2003 until 2006. The maximum rate in 2006 would
be $50.00. The current rate is $40.00 per semester credit hour.
The bill deletes language relating to tuition rates for a resident
student enrolled in a program leading to an M.D. or O.D.
The bill increases the maximum tuition rates for law school and graduate
pharmacy school that are set by the governing boards (board authorized
tuition rates) to three times the statutory tuition rates. Currently,
board authorized tuition rates cannot exceed twice the statutory tuition
rates.
Methodology
Based on information provided by universities in their Legislative
Appropriation Request, the estimated increase in tuition revenue for
fiscal year 2003 is $26,032,628. This amount does not include any
adjustments for projected changes in enrollment. Based on the
methodology used for tuition exemption fiscal notes, it is assumed that
additional tuition revenue as result of the increases above $40 per
semester credit hour would result in a corresponding decrease in general
revenue appropriations to the universities.
Universities would also realize additional revenue for increases in
designated tuition rates (formerly called building use fee). However,
these amounts are not appropriated and would not impact General Revenue.
Based on the Coordinating Board 1999 Statistical Report, law school
students completed 105,446 semester credit hours and graduate pharmacy
students completed 14,684. The current statutory tuition rates are $80
per semester credit hour for law school and $40 per semester credit hour
for graduate pharmacy students. We assumed that the governing boards are
currently charging the maximum amount of board authorized tuition for
these programs or $160 for law school and $80 for graduate pharmacy
programs. The estimated amount of board authorized tuition for 2001 for
law students is $16.9 million and $1.2 million for graduate pharmacy
students. We also assumed that the governing boards would increase the
board authorized tuition rates to the maximum amounts in 2002 or $240 for
law school and $120 for graduate pharmacy students. The 2002 estimated
increase for law schools is $8,435,680 and $587,360 for graduate pharmacy
schools students.
Current statute excludes board authorized tuition from the calculation of
general revenue appropriations.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, SD, CT, DB