LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 17, 2009 TO: Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1394 by Zaffirini (relating to notification of an applicant for admission to a general academic teaching institution regarding the availability of degree programs in the applicant's preferred major field of study offered by other institutions.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB1394, Committee Report 1st House, Substituted: a negative impact of ($107,045) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 17, 2009
TO: Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1394 by Zaffirini (relating to notification of an applicant for admission to a general academic teaching institution regarding the availability of degree programs in the applicant's preferred major field of study offered by other institutions.), Committee Report 1st House, Substituted
TO: Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB1394 by Zaffirini (relating to notification of an applicant for admission to a general academic teaching institution regarding the availability of degree programs in the applicant's preferred major field of study offered by other institutions.), Committee Report 1st House, Substituted
Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education
Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB1394 by Zaffirini (relating to notification of an applicant for admission to a general academic teaching institution regarding the availability of degree programs in the applicant's preferred major field of study offered by other institutions.), Committee Report 1st House, Substituted
SB1394 by Zaffirini (relating to notification of an applicant for admission to a general academic teaching institution regarding the availability of degree programs in the applicant's preferred major field of study offered by other institutions.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB1394, Committee Report 1st House, Substituted: a negative impact of ($107,045) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1394, Committee Report 1st House, Substituted: a negative impact of ($107,045) through the biennium ending August 31, 2011.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($107,045) 2011 $0 2012 $0 2013 $0 2014 $0
2010 ($107,045)
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 ($107,045) 2011 $0 2012 $0 2013 $0 2014 $0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 ($107,045) 2011 $0 2012 $0 2013 $0 2014 $0
2010 ($107,045)
2011 $0
2012 $0
2013 $0
2014 $0
Fiscal Analysis
The bill would require the Higher Education Coordinating Board to implement rules so that any student applying to a general academic teaching institution through ApplyTexas or any online admission application form who designates a choice of major field of study would be redirected by the application website to a notification regarding the availability of degree programs in that field of study offered by other general academic teaching institutions. The notification would include information to assist the applicant in selecting among institutions. Under provisions of the bill, an institution must direct a student who has designated a major field of study and has been denied admission to the same information.
The bill would require the Higher Education Coordinating Board to implement rules so that any student applying to a general academic teaching institution through ApplyTexas or any online admission application form who designates a choice of major field of study would be redirected by the application website to a notification regarding the availability of degree programs in that field of study offered by other general academic teaching institutions. The notification would include information to assist the applicant in selecting among institutions. Under provisions of the bill, an institution must direct a student who has designated a major field of study and has been denied admission to the same information.
Methodology
According to the Higher Education Coordinating Board, the University of Texas at Austin has been the contractor on the ApplyTexas electronic application project since its inception. All ApplyTexas costs are based on the standard hourly amount currently charged by The University of Texas at Austins Information Technology Services (ITS) Applications Department of $65 per hour. The estimated number of hours to complete this project is estimated to be 1,550. Therefore the project will cost $65 * 1,550 = $100,750. In addition, the estimated cost for the HECB programming is estimated to be $6,295 which represents 135 hours at various hourly rates, for a total of $107,045 for fiscal year 2010 and the biennium. The current model for financing the ApplyTexas online application has the institutions pay for all costs. Since the development and implementation is to be completed prior to the next payment cycle for the institutions, it is assumed for purposes of this fiscal note that these costs will be covered by General Revenue. The Coordinating Board estimates that for fiscal year 2010, it would take 260 hours for each of the 36 general academic teaching institutions/campuses using the ApplyTexas electronic application to change systems for new system requirements and to modify current denial systems. Therefore, each institution will incur a cost of 260 * $65 = $16,900, giving a total cost for all institutions of 36 * $16,900 = $608,400. It is assumed that these costs to the institutions could be absorbed within existing resources.
According to the Higher Education Coordinating Board, the University of Texas at Austin has been the contractor on the ApplyTexas electronic application project since its inception. All ApplyTexas costs are based on the standard hourly amount currently charged by The University of Texas at Austins Information Technology Services (ITS) Applications Department of $65 per hour. The estimated number of hours to complete this project is estimated to be 1,550. Therefore the project will cost $65 * 1,550 = $100,750. In addition, the estimated cost for the HECB programming is estimated to be $6,295 which represents 135 hours at various hourly rates, for a total of $107,045 for fiscal year 2010 and the biennium.
The current model for financing the ApplyTexas online application has the institutions pay for all costs. Since the development and implementation is to be completed prior to the next payment cycle for the institutions, it is assumed for purposes of this fiscal note that these costs will be covered by General Revenue.
The Coordinating Board estimates that for fiscal year 2010, it would take 260 hours for each of the 36 general academic teaching institutions/campuses using the ApplyTexas electronic application to change systems for new system requirements and to modify current denial systems. Therefore, each institution will incur a cost of 260 * $65 = $16,900, giving a total cost for all institutions of 36 * $16,900 = $608,400. It is assumed that these costs to the institutions could be absorbed within existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
LBB Staff: JOB, KK, RT, SSh
JOB, KK, RT, SSh