Don’t Tax Me, Don’t Tax Thee,

Tax The Student Behind the Tree

State Senator Eliot Shapleigh

1-800-544-1990

eliot.shapleigh@senate.state.tx.us

Presented to UT Regents Board Meeting, November 18, 2003, Austin, TX

Per Capita General Expenditures

New York $5,586 9Massachusetts 5,067 10Michigan 4,223 12California 4,208 13Washington 3,938 18Pennsylvania 3,591 26New Jersey 3,581 27North Carolina 3,517 29Virginia 3,362 34Ohio 3,427 35Indiana 3,306 36Illinois 3,214 41Georgia 3,053 45Florida 3,070 48Texas $2,723 50

SOURCE: U.S. Bureau of the Census, 2001

The Great Tax ShiftThe Inheritance Tax

Tax on estates valued over $1,000,000

80 year-old state tax

Generated $322 million in revenue for the state

Not renewed during the 78th Legislature.

Tuition Deregulation

A new tax on higher education for college-bound students

Offsets cuts to higher education funding

Increased tuition felt most by low- to middle-income families

Passed during the 78th Legislature.

Tuition Deregulation

A Tax Shift to Students

University of Texas System Tuition Increase ProposalsUniversity Current

CostProposed Increase

Spring 2004

Proposed Increase Fall 2004

Overall Increase

2004

Overall Percentage

Increase

UT-El Paso $1,483 $1,699 $1,892 $409 28%

UT-Austin $2,716 $3,076 $3,506 $720 26.5%

UT-Dallas $2,140 $2,380 $2,668 $528 25%

UT-San Antonio $1,730 $1,910 $2,165 $435 25%

UT-Arlington $1,852 $1,972 $2,176 $324 17.5%

UT-Tyler $1,436 $1,508 $1,652 $216 17%

UT-Brownsville $1,192 $0 $1,378 $186 16%

UT-Permian Basin

$1,394 $1,454 $1,562 $168 12%

UT-Pan American

$1,233 $0 $1,329 $96 8%

vs. $1,699 Spring 2004

81 Bachelor Degrees

14 Doctoral Degrees

27% graduation rate

29% classes under 20 students

$1,686 Spring 2004

74 Bachelor Degrees

24 Doctoral Degrees

43% graduation rate

38% classes under 20 students

What Does Increased Tuition

Buy a Student at UTEP?

1999 2000 2001

Graduation Rate

23.6% 21.7% 25.2%

Remediation Rate

66.7% 66.0% 64.5%

SOURCE: Texas Higher Education Coordinating Board

UT System Graduation Rates

2001 2002

Arlington 31% 35%

Austin 70% 71%

Brownsville N/A N/A

Dallas 55% 53%

El Paso 25% 25%

Pan American 23% N/A

Permian Basin 24% N/A

San Antonio 27% N/A

Tyler N/A N/ASOURCE: U.S. News & World Report

Don’t Tax Me, Don’t Tax Thee,

Tax The Student Behind the Tree

State Senator Eliot Shapleigh

1-800-544-1990

eliot.shapleigh@senate.state.tx.us

Presented to UT Regents Board Meeting, November 18, 2003, Austin, TX