LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 26, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB1814 by Ellis, Rodney (Relating to the tuition for law school and graduate and professional pharmacy courses at public institutions of higher education.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1814, Committee Report 1st House, Substituted: positive impact * * of $0 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 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * Estimated Other Educational and * * General Income Account/ * * GR-Dedicated * * 0770 * * 2002 $9,023,040 * * 2003 9,023,040 * * 2004 9,023,040 * * 2005 9,023,040 * * 2006 9,023,040 * ***************************************************** Fiscal Analysis The bill increases the maximum tuition rates for law school and graduate pharmacy school that are set by the governing boards (board authorized tuition rates) to three times the statutory tuition rates. Currently, board authorized tuition rates cannot exceed twice the statutory tuition rates. Methodology Based on the Coordinating Board 1999 Statistical Report, law school students completed 105,446 semester credit hours and graduate pharmacy students completed 14,684. The current statutory tuition rates are $80 per semester credit hour for law school and $40 per semester credit hour for graduate pharmacy students. We assumed that the governing boards are currently charging the maximum amount of board authorized tuition for these programs or $160 for law school and $80 for graduate pharmacy programs. The estimated amount of board authorized tuition for 2001 for law students is $16.9 million and $1.2 million for graduate pharmacy students. We also assumed that the governing boards would increase the board authorized tuition rates to the maximum amounts in 2002 or $240 for law school and $120 for graduate pharmacy students. The 2002 estimated increase for law schools is $8,435,680 and $587,360 for graduate pharmacy schools students. Current statute excludes board authorized tuition from the calculation of general revenue appropriations. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 781 Texas Higher Education Coordinating Board LBB Staff: JK, CT, DB