LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 27, 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.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2531, As Introduced: positive impact of $26,032,628 through the *
* biennium ending August 31, 2003. *
**************************************************************************
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 until the rate reaches a maximum rate of $60.00. The
current rate is $40.00 and the rate increase of $2.00 increments would
begin in academic year 2002-2003.
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: 752 University of North Texas, 783 University of
Houston System Administration, 768 Texas Tech
University System, 720 The University of Texas
System, 758 Texas State University System, 710
The Texas A&M University System, 781 Texas Higher
Education Coordinating Board
LBB Staff: JK, CT, DB