TO: | Honorable Royce West, Chair, Senate Committee on S/C on Higher Education |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | SB392 by Van de Putte (Relating to the residency requirements for tuition and fee exemptions for certain military personnel and their dependents.), As Introduced |
Estimated Two-year Net Impact to General Revenue Related Funds for SB392, As Introduced: an impact of $0 through the biennium ending August 31, 2007.
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | $0 |
2007 | $0 |
2008 | ($18,970,097) |
2009 | ($25,293,462) |
2010 | ($28,665,924) |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
---|---|
2006 | $0 |
2007 | $0 |
2008 | ($18,970,097) |
2009 | ($25,293,462) |
2010 | ($28,665,924) |
The bill would eliminate the requirement that a military veteran be a resident of Texas at the time of enlistment to become eligible for the Hazelwood Act. Allowing additional veterans to be eligible for the Act will cost higher education institutions revenue beginning in fiscal year 2006 and the state beginning in fiscal year 2008.
The fiscal impact to the institutions is based on current average tuition and fees times the projected additional students qualifying for the exemption. The cost to the institutions for additional losses in tuition and fee revenues is projected to be $8.0 million in fiscal year 2006, $15.9 million in fiscal year 2007, $23.9 million in fiscal year 2008, $31.8 million in fiscal year 2009, and $36.1 million in fiscal year 2010.
The fiscal impact to the state is estimated to be $19.0 million in fiscal year 2008, $25.3 million in fiscal year 2009, and $28.7 million in fiscal year 2010. This is the projected future formula funding for the additional veterans and children who enter college as a result of their eligibility for the exemption.
Source Agencies: | 710 Texas A&M University System Administrative and General Offices, 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
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LBB Staff: | JOB, CT, RT, GO
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