The bill relates to performance-based limitations on designated tuition charged by public institutions of higher education. The bill would tie potential designated tuition increases at general academic teaching institutions, other than public state colleges, to achieving identified performance measures targets. The Higher Education Coordinating Board (THECB), in consultation with the governing board and president of each general academic institution, would establish a target level for each performance measure applicable to the institution. If the target levels are met as determined by THECB in the second year preceding a year of proposed tuition increases, an institution could increase designated tuition by inflation plus one percent. If the target levels are not met then the institution could only increase tuition by the rate of inflation. Under provisions of the bill, the THECB would make adjustments or exceptions for institutions that offer only upper-division courses and to which certain performance measures do not apply. Under provisions of the bill the Legislative Budget Board would determine the inflation rate. Tuition charged under this provision of the bill would apply to the 2020-21 academic year (fiscal year 2021).
The bill would also provide for a temporary limitation on the amount of tuition and fees charged by general academic teaching institutions. Under provisions of the bill, the total amount of designated tuition and fees charged by a general academic institution to a student for the 2018-19 (fiscal year 2019) and 2019-2020 (fiscal year 2020), academic years could not exceed the total amount of tuition that an institution would have charged a similarly situated student in the 2016-17 academic year (fiscal year 2017). Institutions could implement a tuition increase for the 2017-18 academic year (fiscal year 2018) but would have to roll back the tuition increase for fiscal years 2019-2020 to tuition rates from the 2016-17 academic year (fiscal year 2017).
Designated tuition and fees within Subchapter E of the Texas Education Code, Chapter 54, except for laboratory fees, student teaching fees, and special course fees, are classified as institutional funds; therefore, there would be no impact to the State. Laboratory fees, student teaching fees, and special course fees under Subchapter E of the Texas Education Code, Chapter 54, are accounted for as educational and general income, or statutory tuition, in the General Appropriations Act. It is assumed that the provisions of the bill would not have a significant effect on this income.
Based on information provided by institutions of higher education, the bill would result in a loss in tuition revenue, which could reach a significant amount.
Administrative duties associated with the bill would be implemented within current resources.
No significant fiscal implication to units of local government is anticipated.