LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 30, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB3524 by Hochberg (Relating to authorizing The University of Texas at Austin to establish a flat rate tuition pilot project for certain undergraduate students.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3524, As Engrossed: positive impact of $653,804 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 $326,902 * * 2003 326,902 * * 2004 326,902 * * 2005 326,902 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) * * Year from General Revenue Fund from Estimated Other * * 0001 Educational and General Income * * Account/ GR-Dedicated * * 0770 * * 2002 $326,902 $326,902 * * 2003 326,902 326,902 * * 2004 326,902 326,902 * * 2005 326,902 326,902 * * 2006 0 0 * *************************************************************************** Technology Impact N/A Fiscal Analysis The bill allows a pilot program to be established at The University of Texas at Austin for non-resident and resident, undergraduate students. A flat-rate tuition amount would be charged to students in the pilot program, involving not more than two colleges or degree programs designated by the Board of Regents of The University of Texas System. Methodology Based on information provided by The University of Texas at Austin, undergraduate students in the College of Engineering and the College of Communication would be the selected pilot group for the basis of calculating the change in tuition and fees. The total number of full time students for the pilot group is estimated to be 7,305, which includes residents and non-residents. Total tuition and fees, including designated tuition and mandatory fees would be $17,856,794 under the current tuition and fee schedule. The same 7,305 students would pay $18,265,422 at the new Flat Rate Tuition amount of $2,500.40 per student. A comparison of the current and proposed pilot project shows a total revenue increase of $408,628 per semester or $817,256 a year. Since appropriated tuition and fees currently accounts for approximately 40% of total tuition and fees, it is assumed that 40% of the increase or $326,902 would be attributed to appropriated tuition and fees. It is further assumed that the tuition revenue increase would be included in formula funding, and would result in a general revenue savings. Since the pilot project is limited in scope, it is assumed that overall enrollment for the state would not be significantly impacted. Therefore, no costs or savings for formula funding related to changes in enrollment is included. Finally it is assumed that a comparative portion of the flat tuition would be deposited in the State Treasury and included in the funding formulas for general academic institutions. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, CT, DB, DC