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: HB2531 by Junell (Relating to tuition rates at public institutions of higher education.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2531, Committee Report 1st House, Substituted: 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. * ************************************************************************** General Revenue-Related Funds, Five-Year 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: *************************************************************************** *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 26,032,628 26,032,628 * * 2004 52,065,256 52,065,256 * * 2005 78,097,884 78,097,884 * * 2006 104,130,512 104,130,512 * *************************************************************************** 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 2007 and by $1.00 per semester credit hour each academic year from 2008 until 2012. The maximum rate in 2012 would be $55.00. The current rate is $40.00 per semester credit hour. The bill authorizes universities to charge an additional amount for designated tuition (formerly called "building use fee") equal to the rates above. These amounts would be considered institutional funds. The bill would remove the current minimum tuition charge of $120 for each semester. 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. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 769 University of North Texas System LBB Staff: JK, CT, DB