LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 11, 1995
TO: Honorable Bill Ratliff, Chair IN RE: Committee Substitute
Committee on Education for
Senate HouseBill No.
Austin, Texas 2313
By: Stiles, Price
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 and
the transfer of the institutions in that system to the Texas
State University System, and to the composition and functions 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 (TSUS). 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 bill would also repeal the
prohibition against using state appropriated funds for
construction, operation, maintenance, improvement, or programs of
TSUS component student centers.
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, WRR