LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 3, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3524 by Hochberg (Relating to authorizing the board of
regents of the University of Texas System to establish a
pilot project for certain students enrolled at the
University of Texas at Austin.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3524, As Introduced: negative impact of $(768,066) 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 $(384,033) *
* 2003 (384,033) *
* 2004 (384,033) *
* 2005 (384,033) *
* 2006 (384,033) *
****************************************************
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 $(384,033) $(384,033) *
* 2003 (384,033) (384,033) *
* 2004 (384,033) (384,033) *
* 2005 (384,033) (384,033) *
* 2006 (384,033) (384,033) *
***************************************************************************
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 would be charged to not more than ten percent of
total full-time student equivalents enrolled in undergraduate degree
programs at the university as authorized by the Board of Regents of The
University of Texas System.
Methodology
There would be a loss of tuition and mandatory fees as a result of the
flat tuition limited to an amount equal to the average amount of tuition,
designated tuition and mandatory fees that would apply to a student
taking twelve semester credit hours.
Based on information provided by The University of Texas at Austin, 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 would be 3,089, which includes
residents and non-residents. Total tuition and fees, including
designated tuition and mandatory fees would be $5,568,790 under the
current tuition and fee schedule.
The flat rate tuition under the pilot program is estimated to be $137.38
per semester credit hour. Multiplying the rate by 12 hours would yield
$1,648.56 per student. For 3,089 students, the flat rate tuition amount
would be $5,092,402 (3,089 X $1,648.56). The difference between the
current tuition rate and the flat rate tuition would be a decrease in
tuition and fees to The University of Texas at Austin of $476,388 per
semester or $952,776 a year.
Since appropriated tuition and fees currently accounts for approximately
40% of total tuition and fees, it is assumed that 40% of the reduction
would be attributed to appropriated tuition and fees. It is further
assumed that general revenue would be used to replace the reduction in
appropriated tuition and fees.
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: 781 Texas Higher Education Coordinating Board, 720
The University of Texas System, 304 Comptroller of
Public Accounts
LBB Staff: JK, CT, DB, DC