LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 20, 1995 TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 2313 Committee on Higher Education By: Stiles, Price House of Representatives Austin, Texas 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 current funding level for the Lamar System Office operations is $708,724 per year. It is assumed that the Texas State University System would need an additional $325,000 per year and 2 full time equivalent employees (FTE) to implement the provisions of the bill. The amounts shown below are the net savings and reduction in employees from abolishing the Lamar System based on current levels. 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 Savings Change in Year to General Number of State Revenue Fund 001 Employees from FY 1995 1996 $383,724 (9.0) 1997 383,724 (9.0) 1998 383,724 (9.0) 1999 383,724 (9.0) 2000 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