LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 20, 2001
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1466 by Bivins (Relating to the tuition and fees that
can be charged at certain institutions of higher
education.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1466, As Introduced: positive impact of $26,032,628 through the *
* biennium ending August 31, 2003. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 26,032,628 *
* 2004 52,065,256 *
* 2005 78,097,884 *
* 2006 104,130,512 *
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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 $0 $0 *
* 2003 26,032,628 26,032,628 *
* 2004 52,065,256 52,065,256 *
* 2005 78,097,884 78,097,884 *
* 2006 104,130,512 104,130,512 *
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Fiscal Analysis
The bill increases the resident tuition rate charged by general academic
teaching institutions (universities) by $2.00 per semester credit hour
each academic year until it reaches a maximum rate of $60.00. The
current rate is $40.00 and the rate increase of $2.00 increments would
begin in academic year 2002-2003.
The bill authorizes universities to charge an additional amount for
tuition (formerly called "building use fee") equal to the rates above.
These amounts would be considered institutional funds.
The bill would remove the current minimum tuition charge of $120 for each
semester.
Methodology
Based on information provided by universities in their Legislative
Appropriation Request, the estimated increase in tuition revenue for
fiscal year 2003 is $26,032,628. This amount does not include any
adjustments for projected changes in enrollment. Based on the
methodology used for tuition exemption fiscal notes, it is assumed that
additional tuition revenue as result of the increases above $40 per
semester credit hour would result in a corresponding decrease in general
revenue appropriations to the universities.
Universities would also realize additional revenue for increases in
designated tuition rates (formerly called building use fee). However,
these amounts are not appropriated and would not impact General Revenue.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 783 University of Houston System Administration,
720 The University of Texas System, 768 Texas
Tech University System, 758 Texas State University
System, 710 The Texas A&M University System
LBB Staff: JK, CT, PF, DB