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