LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 3, 2001
TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1801 by Ogden (Relating to the amount of tuition that
a public institution of higher education must set aside
for Texas Public Education Grants.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1801, As Introduced: positive impact of $65,057,812 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 $32,504,497 *
* 2003 32,553,315 *
* 2004 32,553,315 *
* 2005 32,553,315 *
* 2006 32,553,315 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $32,504,497 *
* 2003 32,553,315 *
* 2004 32,553,315 *
* 2005 32,553,315 *
* 2006 32,553,315 *
*****************************************************
Fiscal Analysis
The bill would reduce the amount of resident tuition income set aside for
the Texas Public Education Grant (TPEG) from 15% to 7.5% for
universities.
Methodology
Based on information provided by universities in their Legislative
Appropriation Request, the estimated reduction in TPEG for fiscal year
2002 is $32,504,497 and for fiscal year 2003 is $32,553,315. This amount
does not include any adjustments for projected changes in enrollment.
The reduction in TPEG would increase the amount of tuition revenue for
the university formulas by the same amount. Based on the methodology
used for tuition exemption fiscal notes, it is assumed that additional
tuition revenue for formula funding would result in a corresponding
decrease in general revenue appropriations to the universities.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, SD, DB