LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

May 21, 2005

TO:	Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB1172 by Brown, Fred (Relating to policies and measures to promote timely graduation of students from public institutions of higher education. ), Committee Report 2nd House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would require the president of each general academic teaching institution to annually provide, no later than November 1 of each year, to the Texas Higher Education Coordinating Board a report describing the institution's efforts regarding timely graduation of undergraduate students.

The bill would reduce the undergraduate funding cap and allow universities to charge non-resident tuition to students who exceed the funding cap. The current funding cap is 45 semester credit hours (SCH) above the degree requirement; the new funding cap would be 30 hours.  The bill also directs the degree length to include minors, double majors, certificates, special programs, and study-abroad programs.  The bill would only apply to those students who initially enroll as an undergraduate student in the Fall 2006.

It is assumed that the duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

The bill would take effect September 1, 2005.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

720 The University of Texas System Administration, 758 Board of Regents, Texas State University System Central Office, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration

LBB Staff:

JOB, JI, JJO, CT, KK