TO: | Honorable Judith Zaffirini, Chair, Senate Committee on S/C on Higher Education |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB85 by Hinojosa (Relating to a moratorium and other limitations on increases in designated tuition charged by public institutions of higher education.), As Introduced |
Estimated Two-year Net Impact to General Revenue Related Funds for SB85, As Introduced: no impact through the biennium ending August 31, 2009.
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | $0 |
2009 | $0 |
2010 | $0 |
2011 | $0 |
2012 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from Institutional Funds 997 |
---|---|
2008 | ($104,989,050) |
2009 | ($215,227,553) |
2010 | ($330,977,981) |
2011 | ($352,739,823) |
2012 | ($375,932,415) |
Although the bill would have no impact to General Revenue, it would eliminate anticipated increases in designated tuition during the three-year moratorium and reduce increases after 2010. The impact of the designated tuition loss to institutions is estimated, based on the latest tuition and fee increases.
The Higher Education Coordinating Board indicates the bill would reduce revenue available to general academic institutions for the three years the bill freezes current charges by an estimated $104,989,050 for fiscal year 2008, $215,227,553 for fiscal year 2009, and $330,977,981 for fiscal year 2010, for a three-year total of $651,194,585. After fiscal year 2010, institutions would be limited to a five percent annual increase; however, since this increase would be calculated as a percentage increase off a lower initial value, there would be a loss to institutional funds of $352,739,823 in fiscal year 2011 and $375,932,415 in fiscal year 2012.
Source Agencies: | 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 781 Higher Education Coordinating Board
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LBB Staff: | JOB, MN, RT, JMI
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