LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 2, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2980 by Dukes (Relating to tuition and fee exemptions
for the children of certain firefighters and peace
officers enrolled at public institutions of higher
education.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2980, As Introduced: positive impact of $5,816,223 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 $675,740 *
* 2003 5,140,483 *
* 2004 (33,411,028) *
* 2005 (32,285,137) *
* 2006 (31,864,174) *
****************************************************
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 $675,740 $675,740 *
* 2003 5,140,483 5,140,483 *
* 2004 (33,411,028) 6,265,421 *
* 2005 (32,285,137) 7,037,304 *
* 2006 (31,864,174) 7,107,970 *
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Fiscal Analysis
The bill exempts children of qualified fire fighters or peace officers
with at least 10 years of experience from tuition and fees for
undergraduate courses at a public institutions of higher education
(institutions).
The exemptions would become effective the fall semester, 2001 or fiscal
year 2002
Methodology
Based on analysis by the Texas Higher Education Coordinating Board
(THECB), an estimated 10,160 students who are children of peace officers
would be eligible for the tuition exemptions beginning in fiscal year
2002. It is assumed that 2,500 would be students currently enrolled
and the remaining 7,660 students would be new students who would not have
otherwise attended. It is further assumed that the one-half of the
7,660 new students would begin in fiscal year 2002 and the remaining
one-half would begin in fiscal year 2003. Based on current enrollment,
it is estimated that 45 percent of the students would attend an
university and 55 percent would attend a community college. It is
estimated that an additional 5,000 new students would become eligible for
the tuition exemptions for children of peace officers each year
beginning in fiscal year 2004. It is estimated that the retention rate
for all students is 80 percent. Since no statistics are available about
firefighters years or experience, it is assumed that tuition exemptions
would cost an additional 38 percent based on the percentage of eligible
firefighters to the total of eligible firefighters plus eligible peace
officers.
The estimated loss of tuition is $1,271,250 in fiscal year 2002 and
$711,900 in fiscal year 2003 for current students who become eligible for
exemptions under this provision. This amount would be offset by
resident tuition paid by new students who would not have otherwise
attended universities and is estimated to be $1,946,990 in fiscal year
2002 and $5,852,383 in fiscal year 2003. Universities would also realize
an increase in non-appropriated tuition revenue. However, these amounts
would not impact State appropriations.
Since appropriations for formula amounts are based on historical
enrollment, additional formula costs for new students would not be
incurred until fiscal year 2004. The additional General Revenue formula
costs for new students at both universities and community colleges is
estimated to be $39,676,449 in fiscal year 2004 and $39,322,441 in
fiscal year 2005.
Local Government Impact
It is assumed that enrollment at community colleges would increase
resulting in increased costs which would be at least partially offset by
tuition increases and formula funding increases.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, PF, DB