LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 16, 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.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1466, Committee Report 1st House, Substituted: positive impact *
* of $78,097,884 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 $26,032,628 *
* 2003 52,065,256 *
* 2004 78,097,884 *
* 2005 104,130,512 *
* 2006 130,163,140 *
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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 $26,032,628 $26,032,628 *
* 2003 52,065,256 52,065,256 *
* 2004 78,097,884 78,097,884 *
* 2005 104,130,512 104,130,512 *
* 2006 130,163,140 130,163,140 *
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Fiscal Analysis
(The committee substitute begins the tuition rate increases a year
earlier, and reduces the number of annual tuition rate increases to five
years.)
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 $50.00. The
current rate is $40.00 and the rate increase of $2.00 increments would
begin in academic year 2001-2002.
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 removes 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 2002 is $26,032,628 and for fiscal year 2003 is $52,065,256.
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:
LBB Staff: JK, CT, DB