LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 3, 1995 TO: Honorable Irma Rangel, Chair IN RE: Committee Substitute Committee on Higher Education for House of Representatives House Austin, Texas Bill No. 2313 FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2313 (Relating to abolition of the Lamar University System, the transfer of the institutions in that system to the Texas State University System, and to the composition of the board of regents of the Texas State University System) this office has determined the following: 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 abolish the Lamar University System and board of regents and transfer the governance, operation, maintenance, and control of Lamar University-Beaumont, Lamar University-Orange, and Lamar University-Port Arthur to the Texas State University System . The bill would increase the size of the board of regents of the Texas State University System from 9 to 12 members. The bill would establish the Lamar Institute of Technology as a separate degree granting institution. The bill would authorize the Texas State University System to levy a student center fee to each student enrolled in a component university or educational center of $70 per student per semester and $35 per student per summer session. This would be an increase for students previously under the Lamar University System; however, the bill would authorize the board not to charge the increased fee. These fees would be auxiliary in nature and would not affect the educational and general operations of the institutions involved. The current funding level for the Lamar University System Office operations is $708,724 per year. It is estimated that the Texas State University System would need an additional $325,000 per year and 2 full time equivalent employees (FTE). The net savings from this provision to abolish the Lamar System would be $383,724 per year and a reduction of 9 FTEs based on current levels. The Lamar Institute of Technology is currently considered part of Lamar University - Beaumont for funding purposes and does not have a separate campus. However, under the provisions of this bill, Lamar Institute of Technology would qualify for the formula minimum under the plant support formula ($134,000 in 1996 and $139,000 in 1997). The corresponding decrease in Lamar University - Beaumont's plant support formula funding would be $9,000 per year. Formula funding for instruction would not change. The net cost of this provision would be $125,000 in 1996 and $130,000 in the subsequent years. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Cost Out Probable Savings Change in Year of General to General Revenue Number of State Revenue Fund 001 Fund 001 Employees from Institute of Merger of Systems FY 1995 Technology 1996 $125,000 $383,724 (9.0) 1997 130,000 383,724 (9.0) 1998 130,000 383,724 (9.0) 1999 130,000 383,724 (9.0) 2000 130,000 383,724 (9.0) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Higher Education Coordinating Board, Lamar University System, Texas State University System LBB Staff: JK, LS, WRR