LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 1, 1995



 TO:     Honorable Bill Ratliff, Chair          IN RE:  House BillNo. 2495,
         Committee on Education                               as engrossed
         Senate                                              By: Harris,
         Austin, Texas                          Jack, et al.  









FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2495 (Relating to the transfer of the Baylor College of Dentistry
to The Texas A&M 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 establish Baylor College of Dentistry in Dallas as
a public institution and transfer its governance to the Texas A&M
University System.  Contracts and written obligations entered
into by the board of trustees of Baylor College of Dentistry
would be assumed by the TAMU System.  Provision would be made for
students and existing employees, including state employment
benefits to all Baylor employees who are in service at the time
of the transfer.  By the time of the transfer all previously
expensed accrued vacation leave for existing Baylor employees
would be paid in full.  The transfer would be effective in fiscal
year 1997.

There would be savings from the transfer as a result of economies
of scale associated with membership in the system and other
efficiencies of operation, especially with regards to academic
activities such as planning, support, and records and business
office activities.  To the extent that these savings accrue,
appropriations for operating Baylor College of Dentistry could be    




reduced.

 Baylor College of Dentistry currently receives $13.3 million per
year from general revenue and approximately $4 million per year
from its foundation.  Baylor's current tuition and fee structure
is the same as that of Texas public dental schools.  There is no
current bonded indebtedness.

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     
             Year    Cost/(Savings)  
                     from  General   
                    Revenue Fund 001 
                                     
          1996                     $0
          1997              (266,500)
                                     
          1998            (1,499,500)
                                     
          1999            (2,042,000)
          2000            (2,299,500)
                                     
                                     
                                     
       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:   Texas A&M University System, Higher Education
Coordinating Board,
                        Baylor College of Dentistry, Comptroller
of Public Accounts
          LBB Staff: JK, MK, WRR