LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 10, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3051 by Rangel (Relating to the tuition charged to
certain students at institutions of higher education and
to emergency loans for student tuition and fees.), As
Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3051, As Introduced: negative impact of $(593,312) 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 $(403,696) *
* 2003 (189,616) *
* 2004 (344,132) *
* 2005 (317,721) *
* 2006 (282,474) *
****************************************************
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 $(403,696) $(403,696) *
* 2003 (189,616) (189,616) *
* 2004 (344,132) (38,836) *
* 2005 (317,721) 66,936 *
* 2006 (282,474) 135,579 *
***************************************************************************
Fiscal Analysis
The bill extends exemptions from the foreign student fee to Mexican
students who attend The University of Texas at San Antonio (UTSA) or take
distance learning courses that are part of a collaborative degree
program. Currently the Mexican students are only eligible for the
exemption at institutions in counties which border Mexico, Texas A&M
University - Kingsville or Texas A&M University - Corpus Christi.
The bill allows U.S. Department of State foreign service officers who are
assigned to Mexico to pay resident tuition rates.
Finally, the bill would limit the student award for Texas Public
Educational Grant (TPEG) Emergency Tuition and Fee Loan Program to the
amount of tuition and fees charged to a student for a given semester.
Methodology
Based on analysis by the Texas Higher Education Coordinating Board
(THECB), it is estimated that 29 university students who are currently
enrolled at UTSA would qualify for the foreign student fee exemptions.
In addition 39 students would be new students who would not have
otherwise attended UTSA. It is assumed that the retention rate for all
students is 70%.
The estimated loss of foreign student fees is $172,666 in fiscal year
2002 and $96,693 in fiscal year 2003 for current students who become
eligible for exemptions at UTSA. This amount would be offset by resident
tuition paid by new students who would not have otherwise attended UTSA
and is estimated to be $44,070 in fiscal year 2002 and $50,059 in fiscal
year 2003. UTSA 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 UTSA is estimated to be $179,118 in
fiscal year 2004 and $233,923 in fiscal year 2005.
In addition, the THECB estimates that 50 university students who are
currently enrolled in distance learning courses would qualify for the
foreign student fee exemptions. 39 students would be new students who
would not have otherwise attended a public university. It is assumed
that the retention rate for all students is 70%.
The estimated loss of foreign student fees is $297,700 in fiscal year
2002 and $166,712 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 $22,600 in fiscal
year 2002 and $23,730 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
universities is estimated to be $126,178 in fiscal year 2004 and
$150,735 in fiscal year 2005.
No significant fiscal impact is anticipated for the exemptions for
foreign service offices, because the number of eligible students is
negligible.
No fiscal impact is anticipated for the limit on student awards for TPEG
emergency loans. The change would only effect the distribution of funds
among eligible students.
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