TO: | Honorable Dan Branch, Chair, House Committee on Higher Education |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB1808 by Turner, Sylvester (Relating to limitations on the total amount of tuition charged to a student by a public institution of higher education.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | $0 |
2011 | $0 |
2012 | $0 |
2013 | $0 |
2014 | $0 |
Fiscal Year | Probable Revenue (Loss) from Institutional Funds 997 |
---|---|
2010 | ($126,353,264) |
2011 | ($263,022,542) |
2012 | ($333,766,173) |
2013 | ($493,801,112) |
2014 | ($666,980,661) |
Based on tuition information reported to them by institutions, the Higher Education Coordinating Board determined that designated tuition rates (Section 54.0513 of the Education Code) at general academic teaching institutions have increased, on average, by 14% per year for the past 3 years (average of 11.10%, 13.30, and 17.86). However, the Higher Education Coordinating Board believes the rate of increase will slow to about 8.45% (60% of the current rate of increase). The Higher Education Coordinating Board applied the 8.45% increase to the fiscal year 2009 estimated tuition rates and derived estimates for fiscal years 2009-14. During that time, the Higher Education Coordinating Board estimated that designated tuition at general academic teaching institutions would increase from $2,885 in fiscal year 2009 to $4,328 in fiscal year 2014.
A similar calculation was done for the health-related institutons. The Higher Education Coordinating Board than calculated the number of students that would be impacted. In fall 2007 the number of full-time student equivalent (FTSE) enrolled at general academic institutions and health related institutions was 405,505, which included 330,675 undergraduates and 74,830 graduates. For purposes of this fiscal note it is assumed that the FTSE would remain constant. The amount of tuition at the level rates was subtracted from the anticipated amount of tuition without regulation to determine the tuition losses. The tuition losses for the general academic and health related institutions is estimated to be $95.1 million in fiscal year 2010 and $198.3 million in fiscal year 2011.
For the tuition rates (Section 54.051 of the Education Code) at community colleges the Higher Education Coordinating Board determined the tuition increased from $1,300 in fiscal year 2009 to $1,864 in fiscal year 2014 assuming a 7.47% increase per year. The number of FTSE students for community colleges was 320,175. For purposes of this fiscal note it is assumed that the FTSE would remain constant. The amount of tuition at the level rates was subtracted from the anticipated amount of tuition without regulation to determine the tuition losses. The tuition losses for the community colleges is estimated to be $31.2 million in fiscal year 2010 and $64.7 million in fiscal year 2011.
Based on these calculations the total decrease in tuition revenue would be $126.3 million in fiscal year 2010 and $263.0 million in fiscal year 2011.
For fiscal year 2012 and subsequent years, the tuition increase could not exceed the total amount of tuition charged for the 2008-09 academic year by more than 5 percent. For those years the Higher Education Coordinating Board used a similar method of calculation as included above but adjusted for the 5 percent increase. Based on those calculations, the institutions would lose $333 million in fiscal year 2012, $493 million in fiscal year 2013 and $667 million in fiscal year 2014.
Source Agencies: | 758 Texas State University System, 768 Texas Tech University System Administration, 781 Higher Education Coordinating Board
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LBB Staff: | JOB, KK, RT, GO
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