LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 9, 2009 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 No significant fiscal implication to the State is anticipated. 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 1percent 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. Local Government Impact No fiscal implication to units of local government is anticipated. 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 LBB Staff: JOB, KK, RT, GO
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 9, 2009
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
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
Honorable Frank Corte, Jr., Chair, House Committee on Defense & Veterans' Affairs
Honorable Frank Corte, Jr., Chair, House Committee on Defense & Veterans' Affairs
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB38 by Corte (Relating to providing resident tuition at public institutions of higher education for certain military veterans and their dependents.), As Introduced
HB38 by Corte (Relating to providing resident tuition at public institutions of higher education for certain military veterans and their dependents.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
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 1percent 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.
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 1percent 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.
Local Government Impact
No fiscal implication to units of local government is anticipated.
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
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
LBB Staff: JOB, KK, RT, GO
JOB, KK, RT, GO