LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 10, 2001
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1526 by Van de Putte (Relating to the eligibility of
certain persons to qualify as residents of this state for
purposes of higher education tuition or to pay tuition
at the rate provided to residents of this state.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1526, As Introduced: negative impact of $(21,199,277) 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 $(11,674,221) *
* 2003 (9,525,056) *
* 2004 (46,199,111) *
* 2005 (51,211,638) *
* 2006 (51,716,295) *
****************************************************
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 $(11,674,221) $(11,674,221) *
* 2003 (9,525,056) (9,525,056) *
* 2004 (46,199,111) (8,056,139) *
* 2005 (51,211,638) (7,087,662) *
* 2006 (51,716,295) (7,592,319) *
***************************************************************************
Fiscal Analysis
If passed, this bill would define students who graduate from Texas high
schools while living in the state with their parent, guardian or
conservator as Texas residents for tuition and fee purposes, regardless
of the citizenship or immigration status of the individual The student
must reside in the state for at least one year between the first day the
person attended a public or private high school in the state and the date
the person graduated from such a high school or received the equivalent
of a high school diploma.
The bill would also permit an alien who lives in this country under an
unexpired Visa permitting the person to reside in this country or who has
applied to or has a petition pending to attain lawful status under
federal immigration law to establish residency for tuition and fee
purposes. The current statutory provision provides that only U. S.
citizens and permanent residents are eligible to establish residency.
Finally, the bill would exempt Mexican citizens from non-resident tuition
and fee rates in any general academic teaching institution, public
junior college or Texas State Technical College System component
(institutions) located in a county within 100 miles of the border or in
a county having a population of 100,000 or more. The current statute
authorizes Mexican students to pay in-state tuition and fees at certain
schools near the border when financial need of the student is
established.
Methodology
Based on analysis prepared by the Texas Higher Education Coordinating
Board, extending residency status to students who graduate from Texas
high schools while living in the state with their parents would increase
the number of students attending public institutions by 3,154. It is
assumed that 70% of these students would attend community colleges and
that 30% would attend universities. It is also assumed that the
retention rates for these students would be 70%. The estimated loss of
non-resident tution is $6,577,036 in fiscal year 2002 and $4,871,511 in
fiscal year 2003 for current students who become eligible for exemptions
under this provision. This amount would be offset by resident tuition
paid by new students who would not have otherwise attended universities
is estimated to be $1,068,980 in fiscal year 2002 and $1,818,170 in
fiscal year 2003. It is assumed that General Revenue would be needed to
replace lost tuition revenue at universities. Universities would also
realize an increase in non-appropriated tuition reveneue. However, these
amounts would not impact State appropriations. Since appropriations for
formula amounts are based on historical enrollment, additional formula
costs for new students would not be incurred until fiscal year 2004. The
additional General Revenue formula costs for new students at both
universities and community colleges is estimated to be $19,071,486 in
fiscal year 2004 and $22,061,988 in fiscal year 2005.
The provision of the bill that allows certain aliens to qualify for
residency for tuition and fee purposes would not have a significant
fiscal impact to the state, because this provision is closely related to
the new policy changes that are already in effect.
Based on analysis prepared by the Texas Higher Education Coordinating
Board, extending nonresident tuition waivers for Mexican Nationals to
institutions located in counties with populations of 100,000 or more
would result in a loss of non-resident tution of $6,237,445 in fiscal
year 2002 and $6,599,972 in fiscal year 2003 for current students who
become eligible for exemptions under this provision. This amount would
be offset by resident tuition paid by new students who would not have
otherwise attended univerisites, and is estimated to be $71,280 in
fiscal year 2002 and $128,257 in fiscal year 2003. It is assumed that
General Revenue would be needed to replace lost tuition revenue at
universities which is estimated to be $6,166,165 in fiscal year 2002 and
$6,471,715 in fiscal year 2003. Universities would also realize a
reduction in non-appropriated tuition revenue. However, these amounts
would not impact State appropriations. Since appropriations for formula
amounts are based on historical enrollment, additional formula costs for
new students would not be incurred until for fiscal year 2004. The
additional General Revenue formula costs for new students at both
universities and community colleges is estimated to be $2,978,815 in
fiscal year 2004 and $4,135,646 in fiscal year 2005.
Local Government Impact
General revenue would not be used to offset the loss of tuition and fee
revenue at community colleges, resulting in a revenue reduction.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, DB