LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 9, 2025 TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16 FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2647 by Middleton (Relating to the accreditation of postsecondary educational institutions; authorizing fees.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB2647, As Introduced: a negative impact of ($8,587,433) through the biennium ending August 31, 2027. 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 toGeneral Revenue Related Funds2026($4,420,926)2027($4,166,507)2028($3,483,250)2029($3,483,250)2030($3,483,250)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($4,420,926)35.02027($4,166,507)34.02028($3,483,250)27.02029($3,483,250)27.02030($3,483,250)27.0 Fiscal AnalysisThe bill would establish the Texas Accreditation Agency (TAA), which would be administratively attached and supported by the Texas Higher Education Coordinating Board (THECB). TAA would be responsible for developing and implementing accreditation standards for institutions of higher education based on a set of criteria outlined in the bill. TAA would be required to conduct an evaluation of each institution of higher education and assign accreditation status based on the evaluation.If TAA is officially recognized as an accrediting agency by the United States Department of Education, the bill would require institutions of higher education to seek accreditation from TAA following the expiration of an accreditation received before January 1, 2027.The bill would authorize TAA to collect a fee from institutions of higher education undergoing the accreditation process, including those out-of-state institutions seeking voluntary accreditation from the agency, to be used only for agency operations.The bill would require TAA to provide an institution with written notice of any noncompliance, and if the institution fails to take corrective action within 180 days, require the Comptroller of Public Accounts to withhold all state funding from the institution until compliance is reached.The bill would establish temporary provisions that would require the Texas Higher Education Coordinating Board (THECB) to identify and approve at least three accrediting agencies best suited to serve as accreditors for institutions of higher education. The bill would require THECB to conduct biennial evaluations of the approved accrediting agencies, determine a rating of unsatisfactory or satisfactory for each, and publish the standards used in the evaluation on a publicly accessible website. The bill would establish requirements and procedures related to institutions of higher education seeking accreditation from an approved accrediting agency. All such responsibilities of THECB would expire once all institutions of higher education have been accredited by TAA.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 9, 2025
TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16 FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2647 by Middleton (Relating to the accreditation of postsecondary educational institutions; authorizing fees.), As Introduced
TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB2647 by Middleton (Relating to the accreditation of postsecondary educational institutions; authorizing fees.), As Introduced
Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB2647 by Middleton (Relating to the accreditation of postsecondary educational institutions; authorizing fees.), As Introduced
SB2647 by Middleton (Relating to the accreditation of postsecondary educational institutions; authorizing fees.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB2647, As Introduced: a negative impact of ($8,587,433) through the biennium ending August 31, 2027. 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 SB2647, As Introduced: a negative impact of ($8,587,433) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2026 ($4,420,926)
2027 ($4,166,507)
2028 ($3,483,250)
2029 ($3,483,250)
2030 ($3,483,250)
All Funds, Five-Year Impact:
2026 ($4,420,926) 35.0
2027 ($4,166,507) 34.0
2028 ($3,483,250) 27.0
2029 ($3,483,250) 27.0
2030 ($3,483,250) 27.0
Fiscal Analysis
The bill would establish the Texas Accreditation Agency (TAA), which would be administratively attached and supported by the Texas Higher Education Coordinating Board (THECB). TAA would be responsible for developing and implementing accreditation standards for institutions of higher education based on a set of criteria outlined in the bill. TAA would be required to conduct an evaluation of each institution of higher education and assign accreditation status based on the evaluation.If TAA is officially recognized as an accrediting agency by the United States Department of Education, the bill would require institutions of higher education to seek accreditation from TAA following the expiration of an accreditation received before January 1, 2027.The bill would authorize TAA to collect a fee from institutions of higher education undergoing the accreditation process, including those out-of-state institutions seeking voluntary accreditation from the agency, to be used only for agency operations.The bill would require TAA to provide an institution with written notice of any noncompliance, and if the institution fails to take corrective action within 180 days, require the Comptroller of Public Accounts to withhold all state funding from the institution until compliance is reached.The bill would establish temporary provisions that would require the Texas Higher Education Coordinating Board (THECB) to identify and approve at least three accrediting agencies best suited to serve as accreditors for institutions of higher education. The bill would require THECB to conduct biennial evaluations of the approved accrediting agencies, determine a rating of unsatisfactory or satisfactory for each, and publish the standards used in the evaluation on a publicly accessible website. The bill would establish requirements and procedures related to institutions of higher education seeking accreditation from an approved accrediting agency. All such responsibilities of THECB would expire once all institutions of higher education have been accredited by TAA.
Methodology
THECB indicates that 35.0 FTEs would be needed to establish TAA and provide necessary technical support. Of this total, 12.0 FTEs would be needed to work on evaluations,10.0 FTEs would be needed to develop the medical/dental unit and accreditation standards, 5.0 FTEs to develop the law school unit and accreditation standards, and an additional 1.0 FTE for one year to review and update all agency rules and documentation related to the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). Establishing the necessary technical system for the agency would require 6.0 additional FTEs over an 18-month period, with one 1.0 FTE being maintained for the lifetime of the application.Total costs for salaries, benefits, and other costs related to FTEs would be approximately $3.8 million in 2026 (35.0 FTEs), $3.5 million in 2027 (34.0 FTEs), and $2.8 million in subsequent years (27.0 FTEs). Additionally, THECB expects an annual technology cost of $500,000 per year for new database and application infrastructure as well as annual travel costs of $135,000 per year based on an average of 15 site visits per year for three staff members.According to information provided by institutions of higher education, there could be a significant fiscal impact related to seeking accreditation from another accrediting agency. The Comptroller of Public Accounts has indicated that any fiscal impact resulting from the issuance and collection of fees by TAA cannot be estimated.
Establishing the necessary technical system for the agency would require 6.0 additional FTEs over an 18-month period, with one 1.0 FTE being maintained for the lifetime of the application.Total costs for salaries, benefits, and other costs related to FTEs would be approximately $3.8 million in 2026 (35.0 FTEs), $3.5 million in 2027 (34.0 FTEs), and $2.8 million in subsequent years (27.0 FTEs). Additionally, THECB expects an annual technology cost of $500,000 per year for new database and application infrastructure as well as annual travel costs of $135,000 per year based on an average of 15 site visits per year for three staff members.According to information provided by institutions of higher education, there could be a significant fiscal impact related to seeking accreditation from another accrediting agency. The Comptroller of Public Accounts has indicated that any fiscal impact resulting from the issuance and collection of fees by TAA cannot be estimated.
According to information provided by institutions of higher education, there could be a significant fiscal impact related to seeking accreditation from another accrediting agency.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College 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, 966 Howard College, 978 San Jacinto College
304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College 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, 966 Howard College, 978 San Jacinto College
LBB Staff: b > td > JMc, FV, LBO, BCa, NV, GO
JMc, FV, LBO, BCa, NV, GO