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