LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 24, 1995
TO: Honorable Irma Rangel, Chair IN RE: Committee Substitute
Committee on Higher Education for
House of Representatives HouseBill No.
Austin, Texas 2507
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
2507 (Relating to the lease of the Amarillo campus of the Texas
State Technical College System to Amarillo College) 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 require the board of regents of the Texas State
Technical College System (TSTC) to enter into an agreement with
the board of trustees of Amarillo College by July 1, 1995 to
lease to Amarillo College specified sections of the TSTC Amarillo
campus. In addition, the two boards are required to enter into
an agreement to transfer all right, title, and interest in the
equipment, supplies, and other personal property used by the
system during the 1994-95 academic year. The bill would require
Amarillo College to operate programs offered by TSTC-Amarillo
during the 1994-95 academic year and would provide for the
transfer of employees to the college.
The bill would require that implementation of the lease and
transfer agreement would be contingent upon the certification by
the Texas Public Finance Authority that the Legislature has
appropriated in FY 1996 an amount sufficient to establish an
escrow for defeasance of the Amarillo campus portion of the TSTC
System Building Revenue and Refunding Bonds Series 1992.
The bill would authorize the Legislature to appropriate money to
Amarillo College in support of the lease and transfer agreement,
including operation of the facilities. The bill would transfer
appropriations to TSTC for the 1996-97 biennium to Amarillo
College, all applicable federal technical-vocational funds to
Amarillo College, and all money applicable to the 1995 fall
quarter that TSTC collects prior to the effective date of the
agreement. The bill would authorize the college to collect
tuition and fees at the TSTC rates from students enrolled on the
campus and to establish residency based on TSTC statutes until
September 1, 2000.
The bill would require that bonds issued by TSTC for
constructing, improving, renovating, enlarging, or equipping
infrastructure at TSTC - Amarillo would remain the obligation of
TSTC.
Because the bill would authorize the Legislature to appropriate
funding for operation of the facilities to Amarillo College, it
is assumed that there is no significant fiscal impact to the
State or the local community college district for the lease and
transfer agreement. The provision requiring an escrow for
defeasance of the Amarillo campus portion of the TSTC System
Building Revenue and Refunding Bonds Series 1992 would require an
appropriation of $658,100 to implement.
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
Year of General
Revenue Fund 001
1996 $658,100
1997 0
1998 0
1999 0
2000 0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
No significant fiscal implication to units of local government is
anticipated.
Source: Higher Education Coordinating Board, Texas Public
Finance Authority
LBB Staff: JK, LS, WRR