| TO: | Honorable Frank Corte, Jr., Chair, House Committee on Defense & Veterans' Affairs |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB38 by Corte (Relating to providing resident tuition at public institutions of higher education for certain military veterans and their dependents.), As Introduced |
The bill relates to providing resident tuition at public institutions of higher education for certain military veterans and their dependents. This bill amends Section 54.058(i) of the Texas Education Code by removing the requirement to comply with subsection (d) which imposed certain restrictions on former members of the Armed Forces of the United States and their spouses and dependents.
In fiscal year 2007, the Texas Veterans Commission estimates that 1.7 million veterans are currently living in Texas. The Veterans' Administration estimates 33,260 of these veterans are using federal education benefits. The Higher Education Coordinating Board estimated that 10 percent (of 1.7 million), or 170,000, have lived in Texas less than 1 year and are considered "non-residents". Out of this 170,000, they estimate that: 2% (3,400) will enroll because of the new waiver; 1,530 spouses will enroll; and 1,275 children of veterans will enroll, for a total of 6,205 additional students in 2010. It is also assumed that the number of people qualifying to participate in the program (veterans, their spouses and children) because of the change in eligibility requirements will increase by 1
percent per year through fiscal year 2014. The enrollment pattern among types of institutions and average award amount will remain the same as in fiscal year 2007. The average award amounts for fiscal year 2007 tuition and fee waivers for military in Texas were $4,978 at universities, $7,036 health related institutions, $1,203 at community colleges, and $1,725 at state colleges. Applying the applicable percentage of total fiscal year 2007 waivers for each type of institution to the estimated numbers of additional students, they estimated the institutions will experience additional losses of tuition and fee revenue through the waiver at $13,467,334 in fiscal year 2010 and $13,602,007 in fiscal year 2011, totaling $27,069,341 for the 2010-2011 biennium. Additional losses are estimated at $13,738,027 in fiscal year 2012, $13,875,408 in fiscal year 2013, and $14,014,162 in fiscal year 2014. It is assumed the cost will be absorbed by the institutions of higher education since the bill does not require the State to reimburse the institutions.
| Source Agencies: | 720 The University of Texas System Administration, 758 Texas State University System, 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, KK, RT, GO
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