| TO: | Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB297 by Van de Putte (relating to resident tuition rates at public institutions of higher education for certain veterans and their spouses and children. ), Committee Report 1st House, Substituted |
Under provisions of the bill, certain veterans, spouses, and children of veterans are entitled to pay tuition and fees at an institution of higher education at the rates provided for Texas residents without regard to the length of time the person has resided in this state if certain conditions are met.
In fiscal year 2007, the Texas Veterans Commission (TVC) estimates that 1.7 million veterans are currently living in Texas, but has no data about the share of them who are originally from Texas. The Veterans' Administration estimates 33,260 of these veterans are using federal education benefits. The Higher Education Coordinating Board estimates that 10 percent (of the 1.7 million), or 170,000 have lived in Texas less than 1 year and are considered "non-residents". TVC estimates 75 percent, or 127,500 of these veterans are eligible for Post-911 education benefits. Out of this 127,500, the Higher Education Coordinating Board estimates that because of the new waiver: 2,550 veterans, 1,148 spouses, and 956 children of veterans will enroll, for a total 4,654 additional students in 2010. They further assume the number of people qualifying to participate in the program (veterans, their spouses, and children) will increase by 1 percent per year through fiscal year 2014. Their enrollment pattern among types of institutions and average award amount will remain the same as in fiscal year 2007.
The Higher Education Coordinating Board first calculated the award amounts and average value of all military waivers received in fiscal year 2007 to determine the percentage of participants using these waivers per type of institution. Applying these same percentages to the fiscal year 2010 estimated number of students, they calculated the number of additional students that would enroll using the waiver if enrollments increased by 1 percent per year. They estimated the number of students using the waiver in fiscal year 2010 would begin at 4,654 increasing by 1 percent thereafter and reaching 4,843 in fiscal year 2014. The average award amounts for fiscal year 2007 tuition and fee waivers for military in Texas was $2,170. Based on these assumptions, the institutions of higher education will experience additional losses of tuition and fees through the waiver estimated at $10,101,043 in fiscal year 2010 and $10,202,053 in FY2011. Additional losses are estimated at $10,304,074 in fiscal year 2012, $10,407,115 in fiscal year 2013, and $10,499,876 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: | 758 Texas State University System, 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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