LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 26, 2001
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1403 by Noriega (Relating to the eligibility of
certain persons to qualify as residents of this state for
purposes of higher education tuition.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1403, As Engrossed: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 (17,744,109) *
* 2005 (21,169,221) *
* 2006 (22,459,256) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from Estimated Other *
* 0001 Educational and General Income *
* Account/ GR-Dedicated *
* 0770 *
* 2002 $0 $764,062 *
* 2003 0 1,455,256 *
* 2004 (17,744,109) 1,953,876 *
* 2005 (21,169,221) 2,320,335 *
* 2006 (22,459,256) 2,407,356 *
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Fiscal Analysis
The bill defines students who graduate from Texas high schools while
living in the state with their parent, guardian or conservator as Texas
residents for tuition and fee purposes, regardless of the citizenship or
immigration status of the student. The student must reside in the state
for at least one year between the first day the person attended a public
or private high school in the state and the date the person graduated
from such a high school or received the equivalent of a high school
diploma.
The bill permits an alien who lives in this country under an unexpired
visa permitting the person to reside in this country or who has applied
to or has a petition pending to attain lawful status under federal
immigration law to establish residency for tuition and fee purposes. The
current statutory provision provides that only U. S. citizens and
permanent residents are eligible to establish residency.
The bill exempts Mexican citizens from non-resident tuition and fee rates
in any general academic teaching institution, public junior college or
Texas State Technical College System component (institutions) located in
a county within 100 miles of the border or in a county having a
population of 100,000 or more. The current statute authorizes Mexican
students to pay in-state tuition and fees at certain schools near the
border when financial need of the student is established.
The bill exempts certain non-resident students from non-resident tuition
if one of the student's parents lives in the state, is a conservator and
is not delinquent on child support.
Methodology
This fiscal note assumes that the provision which requires that the
waivers would only apply to students who register as entering students on
or after the 2001 fall semester applies to the first three provisions.
Based on analysis prepared by the Texas Higher Education Coordinating
Board, extending residency status to students who graduate from Texas
high schools while living in the state with their parents would increase
the number of students attending public institutions by 2,392 in fiscal
year 2002. It is assumed that 70% of these students would attend
community colleges and that 30% would attend universities. It is also
assumed that the retention rates for these students would be 70%.
Resident tuition paid by new students who would not have otherwise
attended universities is estimated to be $811,340 in fiscal year 2002 and
$1,378,600 in fiscal year 2003. Universities would also realize an
increase in non-appropriated tuition revenue. However, these amounts
would not impact State appropriations. Since appropriations for formula
amounts are based on historical enrollment, additional formula costs for
new students would not be incurred until fiscal year 2004. The
additional General Revenue formula costs for new students at both
universities and community colleges is estimated to be $14,462,676 in
fiscal year 2004 and $16,730,478 in fiscal year 2005.
Based on analysis by the Texas Higher Education Coordinating Board, the
provision of the bill that allows certain aliens to qualify for residency
for tuition and fee purposes would not have a significant fiscal impact
to the state, because this provision is closely related to the new policy
changes that are already in effect.
Based on analysis prepared by the Texas Higher Education Coordinating
Board, extending foreign student tuition waivers for Mexican Nationals
to all institutions would increase the number of students attending
public institutions by 412 in fiscal year 2002 . Resident tuition paid
by new students who would not have otherwise attended universities is
estimated to be $71,280 in fiscal year 2002 and $128,257 in fiscal year
2003. Universities would also realize a reduction in non-appropriated
tuition revenue. However, these amounts would not impact State
appropriations. Since appropriations for formula amounts are based on
historical enrollment, additional formula costs for new students would
not be incurred until for fiscal year 2004. The additional General
Revenue formula costs for new students at both universities and community
colleges is estimated to be $2,978,815 in fiscal year 2004 and
$4,135,646 in fiscal year 2005.
Based on analysis by the THECB, it is estimated that 45 university
students would qualify for tuition exemptions. Of those one-half or 22
students would be currently enrolled. Of the remaining 23, 11 students
would be new students who would not have otherwise attended a public
university. The THECB estimates that 214 community college students
would be eligible for the tuition exemptions. Of those students,
one-half or 108 would be currently enrolled and the remaining 106 would
be new students. One-half of the new students or 53 would be new students
who would not have otherwise attended a community college. It is
assumed that the retention rate for all students is 70%.
The estimated loss of non-resident tuition is $130,988 in fiscal year
2002 and $73,353 in fiscal year 2003 for current students who become
eligible for exemptions under this provision. This amount would be
offset by resident tuition paid by new students who would not have
otherwise attended universities is estimated to be $12,430 in fiscal year
2002 and $21,753 in fiscal year 2003. Universities would also realize
an increase in non-appropriated tuition revenue. However, these amounts
would not impact State appropriations. Since appropriations for formula
amounts are based on historical enrollment, additional formula costs for
new students would not be incurred until fiscal year 2004. The
additional General Revenue formula costs for new students at both
universities and community colleges is estimated to be $302,618 in
fiscal year 2004 and $317,749 in fiscal year 2005.
Local Government Impact
Community colleges would also receive additional tuition revenue from new
students attending the institutions who would not otherwise have
attended.
Source Agencies:
LBB Staff: JK, CT, DB