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
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* 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. *
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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 *
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All Funds, Five-Year Impact:
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*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 *
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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